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Unemployment worldwide - Statistics & Facts

Unemployment increased around the world when the COVID-19 pandemic started spreading in late 2019 and through 2020 and onwards. Shops and restaurants were forced to close, and travel restrictions meant that people working in travel and tourism lost their jobs. However, global labor markets were able to recover quickly due to government support packages and businesses' ability to adjust. By 2022, the global unemployment rate had almost fallen to pre-pandemic levels. Unemployment rate is defined as the number of people in working age that are currently unemployed but are actively looking for a job, divided by the total labor force. The unemployment rate is a lagging economic indicator, which means that it reacts to past circumstances, rather than predicting in which direction an economy may evolve.

What affects the unemployment rate?

There are many factors that have an effect on the unemployment rate. Usually, when an economy is in recession, it is to be expected that the unemployment rate will increase. Businesses struggling to cope with poor economic conditions tend to stop recruiting, or even reduce the working force if no other solutions can be found. A glance at the Gross Domestic Product (GDP) can help to indicate future unemployment trends. Another important aspect to consider is demography of a population. In an aging society, there are fewer people counting as part of the labor force, meaning that unemployment rates are likely to be low. This trend can be observed in Japan.

Youth unemployment

In some countries, youth unemployment rate is much higher than overall unemployment rate. The reasons behind this are the overall state of the economy, access to education and its quality, and a lack of a well-functioning job market offering diverse entrance-level positions. Lack of job positions as well as unsatisfactory wages are reasons why people leave their home countries to find work abroad.Within the EU, people can travel freely across countries in search for better employment opportunities, but this is a lot more challenging for people from outside the Union.

Effect of unemployment on health

Unemployment can affect both physical and mental health. The possibility of losing a job is one of the major concerns of people worldwide. Even though the unemployed can count on government support in some countries, they still have problems to make the ends meet, especially with recession and high inflation hitting the markets. Good news, though, is that unemployment rates are expected to remain relatively low over the coming years.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 18, 2023

Key insights

Global unemployment rate
5.77%
Total number of unemployed persons worldwide
210.94 million
Unemployment rate in South Africa, highest in the G20
33%
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