High unemployment rates impact a country’s economic and social growth. In 2024, several nations are struggling with severe joblessness. Among them, South Africa stands out, Tuvalu follows closely, and Djibouti rounds out the top three. Unemployment rates reflect ongoing economic challenges and structural issues within these countries. Let’s move forward and explore the top 10 countries with the highest unemployment rates, raising the curtain from key insights. 

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Top 10 Countries With the Highest Unemployment Rate

• South Africa
• Tuvalu
• Djibouti
• Equatorial Guinea
• Palestine
• Botswana
• Grenada
• Eswatini
• Gabon
• Namibia

1- South Africa

As of 2024, South Africa faces a huge unemployment rate of approximately 34.5%. The figure places the nation at the top of the list of countries with the highest unemployment rates globally. With a population of about 60 million, the impact of this unemployment crisis is profound, as it is affecting millions of families and communities across the country.

The roots of South Africa’s unemployment crisis are linked to the country’s historical context. The legacy of apartheid has left deep economic divides. Many black South Africans still struggle to access quality education and job opportunities. The overall systemic inequality continues to jeopardize economic progress. 

Another significant contributor is the skills mismatch in the labor market. Many young people need the necessary skills that employers demand to enter the job market. The education system often fails to equip students with practical skills or vocational training. Consequently, graduates find themselves unable to secure jobs, which leads to high youth unemployment rates.

The economic landscape also plays a crucial role. South Africa’s economy has been sluggish, with slow growth rates resulting from various factors, including political instability and corruption. Businesses are hesitant to invest in an environment where uncertainty looms large. The lack of investment also stifles job creation and sustains the cycle of unemployment.

On the other hand, the COVID-19 pandemic had a catastrophic impact on the economy. Many businesses closed or downsized during the pandemic. The structural issues within the economy contribute to the problem. Industries such as mining and manufacturing, which historically provided many jobs, are facing challenges. 

Automation and technological advancements are also reducing the number of available positions, leaving many workers displaced.

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2- Tuvalu

Tuvalu is an island nation in the Pacific Ocean. It stands as the second country with the highest unemployment rate. The unemployment rate is 26.6%, with 18.6% among the youth population. The situation is particularly concerning given Tuvalu’s total population of approximately 11,312 people.

There are several factors behind the high unemployment rate in Tuvalu. First, the country’s economy is dependent on a few sectors, primarily services, which account for about 53% of employment. The limited diversification means that when one sector suffers, the entire economy feels the impact.

The COVID-19 pandemic has profoundly impacted tourism and trade, which are vital for the nation. The international travel restrictions led to job losses and reduced economic activity. Many businesses were unable to sustain operations, resulting in layoffs and increased unemployment.

Another significant issue is the migration of Tuvaluans abroad for better employment opportunities. Approximately 20% of the population has left the country, seeking work in places like New Zealand and Australia. While remittances from these workers contribute positively to the economy, the loss of skilled labor creates a gap in the local job market.

Climate change also poses a serious threat to Tuvalu’s economy. Rising sea levels and extreme weather events can damage infrastructure and disrupt livelihoods, particularly in agriculture and fishing, which are crucial for many families. 

3- Djibouti

Djibouti, the third country with the highest unemployment rate, is at the crossroads of Africa and the Middle East. According to the statistics for 2024, the unemployment rate in Djibouti is expected to reach around 26.1%. A substantial portion of the population is struggling to find jobs.  

One of the primary factors behind Djibouti’s high unemployment rate is the country’s jobless growth phenomenon. Although Djibouti has experienced economic growth, much of it has not translated into job creation. The economy has been dependent on sectors such as logistics, transportation, and re-exporting, which are not labor-intensive. 

There is also a significant mismatch between the skills possessed by job seekers and those demanded by the market. The skills gap further worsens the unemployment situation, as many individuals are unable to secure jobs despite actively seeking employment.

On the other hand, the country faces challenges related to its labor force participation rate as many people of the working-age population are neither employed nor actively seeking work. In 2017, it was reported that only about 25% of individuals aged 15-64 were engaged in the workforce. 

Finally, external factors such as regional instability and economic fluctuations can also impact Djibouti’s job market. The country’s strategic location makes it susceptible to economic shifts in neighboring regions, which can influence trade and employment opportunities.

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4- Equatorial Guinea

Equatorial Guinea is a small Central African nation and the fourth country with the highest unemployment rates. The unemployment rate is projected to reach over 25% by the end of the year. With a population of approximately 1.7 million, the effect of unemployment is felt across various demographics, particularly among youth and unskilled laborers.

The main reason behind this scenario is Equatorial Guinea’s economic dependency on oil exports, which account for a significant portion of its GDP. The reliance makes the country vulnerable to fluctuations in global oil prices. When prices drop, the economy suffers, which leads to job losses in the oil sector and related industries.

The country’s economy is not well-diversified. There is minimal development in other sectors like agriculture, tourism, or manufacturing. The lack of variety limits job creation and makes it difficult for the workforce to find employment outside the oil industry.

Youth unemployment is particularly alarming. A large portion of the population is young, and many graduates struggle to find jobs. The education system does not always align with market needs. 

Political factors also contribute to the unemployment crisis. Corruption and mismanagement of resources have restricted economic growth. The lack of transparent policies discourages foreign investment, which is crucial for job creation and economic stability.

5- Palestine

Palestine is the fifth country with the highest unemployment rate. With a population of 5.4 million, the country has been ravaged by a prolonged war that has taken a heavy toll on its economy and labor market. The ongoing conflict has led to the loss of over 507,000 jobs across the Occupied Palestinian Territory (OPT) as of January 2024.

The Gaza Strip has been hit particularly hard, with around 201,000 jobs lost, accounting for approximately two-thirds of total employment in the enclave. The West Bank has also suffered significant job losses, with 306,000 jobs lost, representing over one-third of total employment in the region.

The current war in Gaza has been the primary driver of the unemployment crisis in Palestine. The conflict has caused widespread destruction, with entire neighborhoods wiped out, infrastructure demolished, and businesses destroyed. 

The private sector in Gaza is significantly reducing production. In the first four months of the war, the private sector in Gaza lost 85.8% of its production value, equivalent to $810 million. The West Bank has also suffered, with the private sector experiencing a 27% reduction in production value, equivalent to $1.5 billion during the same period.

On the other hand, the war has also disrupted supply chain networks and transportation routes in the West Bank. A survey conducted by the ILO found that among West Bank workers who are still employed, 51% faced reduced hours of work and 62.8% experienced a reduction in wages.

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6- Botswana

Botswana’s unemployment rate is projected to reach 23.6% by the end of 2024. The figure highlights a persistent issue in a country with a total population of approximately 2.7 million people. Despite its rich diamond resources and high income level, Botswana struggles with high unemployment rates.

Several factors contribute to the widespread unemployment in Botswana. First, the economy heavily relies on the diamond mining sector, which accounts for around 90% of its exports. When diamond prices drop or production slows, the effects ripple through the economy.

While the public sector plays a significant role in the economy and provides many jobs, it is still not enough to absorb the growing labor force. Efforts to diversify the economy have been slow, and the lack of investment in other sectors has left many people without viable employment options.

Botswana’s economic growth has also slowed, projected at just 3.3% in 2023, down from 5.8% in 2022. This decline is primarily due to reduced demand for diamonds globally. Climate change presents another challenge. Increasingly severe weather patterns disrupt agricultural production and livelihoods, particularly for those in rural areas. 

7- Grenada

Grenada is a small island nation in the Caribbean and stands as the seventh country with the highest unemployment rates in recent years. In 2024, the unemployment rate in Grenada stood at 22.9%. The total population of the country is just 126,887 people. 

One of the primary reasons for Grenada’s high unemployment rate is its heavy reliance on tourism. The COVID-19 pandemic dealt a severe blow to the tourism industry, leading to job losses and reduced economic activity. As the world slowly recovers from the pandemic, Grenada’s tourism sector has yet to fully rebound.

Another factor contributing to Grenada’s unemployment rate is its limited economic diversification. The country’s economy is dependent on agriculture, particularly the production of spices like nutmeg and mace. However, the agricultural sector has faced challenges, including natural disasters and fluctuating global prices, which have impacted employment opportunities.

Grenada’s small size and limited resources also pose challenges for job creation. The country’s limited land area and lack of natural resources make it difficult to attract large-scale investments and industries that could generate significant employment. 

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8- Eswatini

Eswatini, a country in Southern Africa, comes in the eighth position in terms of unemployment. In 2024, the country’s unemployment rate stands at 22.7%, with over 70% of the population below the age of 35. This high rate of joblessness is a major concern for the government and the people of Eswatini.

The country’s youthful demographic presents both opportunities and challenges. On one hand, a large working-age population could drive economic growth and development. However, the lack of employment opportunities for these young people is a pressing issue that requires strategic planning.

One of the main reasons behind the high unemployment rate in Eswatini is the mismatch between the skills of graduates and the demands of the job market. Each year, the country produces around 4,000 graduates from universities, training institutions, and vocational schools, but many struggle to find employment.

The high prevalence of HIV/AIDS in Eswatini also contributes to the unemployment challenge. The disease affects the working-age population, reducing productivity and increasing healthcare costs. 

9- Gabon

The unemployment rate in Gabon is estimated to be around 20.4%, and the total population is just 2.4 million people. One major issue behind the high unemployment rate is the reliance on oil exports. However, fluctuations in global oil prices created economic instability. 

Political instability and corruption have deterred foreign investment. Investors are hesitant to commit to a country with a history of political unrest. Without foreign investment, job creation becomes even more challenging. The COVID-19 pandemic also disrupted global supply chains and reduced demand for Gabon’s oil. 

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10- Namibia

Namibia is one of the countries with the highest unemployment rate, with its unemployment rate estimated at around 19.9%. The country relies on the extraction and export of natural resources, such as diamonds, uranium, and copper. This dependence on a few industries leaves the economy vulnerable to fluctuations in the global market. 

Namibia’s high unemployment rate is also linked to the legacy of apartheid and the unequal distribution of wealth and resources. The country’s history of racial discrimination and oppression has created disparities in access to education, healthcare, and economic opportunities, particularly for the black population.

The lockdowns during COVID-19, travel restrictions, and the global economic downturn have led to job losses in various sectors, such as tourism, hospitality, and retail. 

Ranking	Country	Unemployment Rate
1	South Africa	34.5%
2	Tuvalu	26.6%
3	Djibouti	26.1%
4	Equatorial Guinea	25%
5	Palestine	24.4%
6	Botswana	23.6%
7	Grenada	22.9%
8	Eswatini	22.7%
9	Gabon	20.4%
10	Namibia	19.9%

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Conclusion

High unemployment rates are a significant challenge for many countries. Countries like South Africa, Tuvalu, and Djibouti face persistent unemployment issues, often linked to economic instability, a lack of job opportunities, and structural inefficiencies. These challenges can lead to social unrest, increased poverty, and a strain on government resources. 

Addressing unemployment in these countries requires comprehensive strategies that include economic diversification, investment in education, and job creation programs. Improvements in governance and reducing corruption can help create a more suitable environment for businesses to thrive. 

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