In this article, we will look at the 17 European countries with the highest unemployment rates. We have also discussed the fluctuating unemployment rates in the EU zone in 2023. If you want to skip our detailed analysis, head straight to the 5 European Countries with the Highest Unemployment Rates.
In November 2023, the unemployment rates in Europe continued their downward trend, with the euro area at 6.4% and the EU at 5.9%. These figures represent a decline from the previous month and the same period in 2022. Eurostat data showed a decrease in the number of unemployed persons in both the EU and the euro area compared to October 2023 and November 2022, with 12.954 million individuals unemployed in the EU and 10.970 million in the euro area.
Youth unemployment remained a concern, with 2.814 million young people unemployed in the EU, of which 2.321 million were in the euro area. Although the youth unemployment rate decreased slightly from the previous month, it saw an increase compared to November 2022. Unemployment rates for men and women showed slight variations, with women experiencing a slightly higher unemployment rate in both the EU and the euro area. It is worth noting that Luxembourg and Austria are countries with the low unemployment rates in Europe.
During our research, we also observed the intricate dynamics of job creation and unemployment rates in Southern Europe, particularly in Portugal, Greece, Spain, and Italy. Despite a noticeable decrease in unemployment figures over the past decade, the underlying issues of job insecurity and low wages persist. Portugal, for instance, experienced a remarkable economic turnaround, with its unemployment rate dropping from a peak of 17.9% in 2013 to 6.6% by the end of 2023. Similarly, Greece saw a significant decrease from 27% in 2014 to below 10% presently. Italy recorded the creation of 456,000 jobs between 2022 and 2023, contributing to a decreased unemployment rate of 7.2% in December 2023. Spain also witnessed a noteworthy drop in unemployment, despite regional disparities, with the creation of 783,000 jobs in 2023.
However, despite these positive trends, challenges such as regional disparities and inadequate training persist as there are disparities in unemployment rates across regions, such as 6.3% in Spain’s Basque Country compared to 17.6% in Andalusia. Additionally, a major proportion of the population lacks adequate education, with over 35% of individuals in Portugal, Italy, Spain, and Greece having an education level below the baccalaureate. Furthermore, job insecurity remains prevalent, compounded by the acceptance of low wages. It is worth highlighting that Malta was the country with the lowest unemployment rate in Europe in 2023.
While unemployment rates continue to fluctuate, key employers in Europe like Microsoft Corp (NASDAQ:MSFT) and General Motors Co (NYSE:GM) are actively participating in the region to improve the economic and technological landscape in these countries.
For example, in response to the growing demand for cloud infrastructure in Europe, Microsoft Corp (NASDAQ:MSFT) is making major investments to expand its capabilities. This expansion includes bolstering infrastructure at both new and existing data centres, incorporating cutting-edge AI accelerators from industry leaders like NVIDIA Corp (NASDAQ:NVDA) and AMD, and optimizing networking and storage solutions for enhanced performance. With over 60 datacenter regions worldwide, Microsoft Corp (NASDAQ:MSFT) boasts the largest global cloud footprint, ensuring that businesses can access high-capacity networking infrastructure while adhering to data residency and compliance requirements.
Europe’s dynamic economic landscape necessitates a robust cloud infrastructure that supports global scalability. Microsoft Corp (NASDAQ:MSFT) investments in key European regions such as the United Kingdom, Sweden, and Germany underscore its commitment to providing customers with the necessary tools to harness the power of the cloud. These strategic expansions not only cater to burgeoning demand but also align with Microsoft Corp (NASDAQ:MSFT) sustainability goals, incorporating eco-friendly practices like free air cooling and renewable energy sources.
Choosing the right cloud architecture is pivotal for organizations embarking on their digital transformation journey. Microsoft Corp (NASDAQ:MSFT) Azure offers a plethora of regions worldwide, allowing customers to optimize costs, meet regulatory requirements, and achieve business growth seamlessly. Leveraging frameworks like the Cloud Adoption Framework and the Well Architected Framework empowers organizations to build reliable, secure, and performant workloads while maximizing the value of their investment in Azure infrastructure.
On the other hand, General Motors Co (NYSE:GM) is making a bold return to the European market with the launch of its electric Cadillac, the Lyriq SUV. After maintaining a low profile in the region for several years, the automaker has announced that it will start taking orders for the battery electric Lyriq in Switzerland, with deliveries expected to commence in the first half of 2024. Over the next couple of years, General Motors Co (NYSE:GM) plans to introduce electric models in Sweden, France, and three additional European countries. This move marks a major shift for General Motors Co (NYSE:GM), which previously only imported a small number of vehicles into Europe and sold off its Opel and Vauxhall brands in 2017 to what is now Stellantis.
The Lyriq, powered by General Motors Co (NYSE:GM)’s Ultium batteries with an impressive estimated range of 530km per charge, will be priced competitively, starting at CHF82,000 (US$89,705), comparable to premium German electric SUVs. General Motors Co (NYSE:GM) intends to sell its Cadillac EVs directly to European consumers through its websites and flagship stores, including one in downtown Zurich, importing the models from its US plant in Spring Hill, Tennessee. With plans to offer a complete range of fully electric models in Europe by the end of the decade, General Motors Co (NYSE:GM) is set to make a huge impact on the region’s electric vehicle market.
FEMA/ Michael Raphael
Methodology
To list the 17 European countries with the highest rates of unemployment, we utilized the unemployment rates provided by the World Bank, ensuring that the list is based on reliable and objective statistics. The unemployment rates were acquired from World Bank data for the year 2022, for all 17 European countries.
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17. Romania
Unemployment Rate: 5.6%
Romania’s unemployment rate held steady at 5.4% in November 2023, with 442,100 individuals aged 15-74 jobless, a decrease from October. Gender disparities persisted, with men facing a 5.8% unemployment rate compared to 4.9% for women. Concerningly, youth unemployment stood at 21.1%.
16. Lithuania
Unemployment Rate: 6.0%
In the fourth quarter of 2023, Lithuania struggled with a high increase in unemployment, marking a rise to 7.4%, an increase of 1.2% from the previous quarter. The State Data Agency revealed that male unemployment stood at 8.3%, while female unemployment reached 6.6%. Particularly concerning was the youth unemployment rate, soaring to 18.3%, up by 6.4 percentage points. It is one of the places with the highest unemployment rate by country in 2023.
15. Portugal
Unemployment Rate: 6.0%
Amidst fluctuations, Portugal’s unemployment rate reached 6.5% in September, slightly up from the previous year, yet with record-high employment since 1998. Labor force stability persists, with slight increases in employment and underutilization rates. It is also one of the countries with the highest skilled labor shortages in Europe.
14. Slovak Republic
Unemployment Rate: 6.1%
The unemployment rate in Slovak Republic was 6.1% in 2022. However, in January 2024, Slovakia’s unemployment rate slightly increased to 3.97%, up by 0.09% from December 2023. but down by 0.47% from January 2023. Minister Erik Tomas noted the rate remains below 4%, indicating a a strong labor market, motivating continued efforts to assist job seekers.
13. Finland
Unemployment Rate: 6.7%
While the unemployment rate in the country was 6.7% in 2022, Finland’s unemployment rate continued to rise till the end of 2023, reaching 7.6% among 15-74-year-olds, with 26,000 more people jobless compared to November 2022. The economic downturn has affected various sectors, notably construction, facing a crisis. Economists attribute the recession to falling household consumption, declining business confidence, and tight monetary policies.
It is one of the countries with high levels of unemployment in Europe.
12. Latvia
Unemployment Rate: 6.8%
According to the Ministry of Finance, Latvia anticipates a decrease in unemployment to 5% in the coming years. The abor market reflects the economic downturn’s impact with a lag, evidenced by rising registered unemployment.
11. Croatia
Unemployment Rate: 7.0%
In January 2024, Croatia’s registered unemployment rate rose to 6.8%, with 119,720 people registered as unemployed, marking a 4.1% increase from the previous month. However, there was a 2.2% decrease compared to the previous year.
10. France
Unemployment Rate: 7.3%
In France, inflation is on a downward trend while unemployment is steadily rising, echoing concerns about Europe’s future. The inflation rate dropped to 4% in October from 4.9% in September, mainly due to reduced energy prices. Similarly, unemployment rose to 7.4% in Q3 2023 from 7.2% in Q2 2023, a concerning development blamed on the sluggish global economy. Analysts predict a gradual increase to 7.8% by 2025. With Europe’s GDP growth estimates revised downward and global demand weakening, fears of rising unemployment across the continent are looming. It is one of the countries with the highest unemployment rates in 2024.
9. Sweden
Unemployment Rate: 7.4%
According to research from Sveriges Riksbank, Sweden is expected to experience a decrease in employment and labor force growth. Authors suggest that while Sweden’s labor force grew by an average of 1.1% annually over the past decade, it will decline to 0.3% in the future due to lower demographic growth and shifts in the age composition of the population.
It is one of the countries where its easy for Americans to find a job.
8. Italy
Unemployment Rate: 8.1%
In Italy, four out of five individuals from the youth consider emigration due to bleak prospects. Despite a drop in youth unemployment from 42.7% in 2014 to 21% in 2023, reforms like the Jobs Act failed to alleviate their plight. Introduced by Matteo Renzi, the Act relaxed labor market regulations, yet deepened young workers’ economic insecurity. Flexible contracts dominate, with 38.2% of youth under temporary arrangements. Italy is one of the EU countries with the highest unemployment rates.
7. Serbia
Unemployment Rate: 8.7%
In Serbia, unemployment saw a slight increase to 9.1% in the fourth quarter of 2023, up from 9.0% in the previous quarter. Despite this, there was a marginal decrease compared to the same period in the previous year. The capital Belgrade boasted the lowest unemployment rate at 6.7%, while the southern and eastern regions faced the highest rate at 11.2%.
6. Ukraine
Unemployment Rate: 9.8%
Unemployment in Ukraine has surged to alarming levels, exacerbated by the economic fallout from Russia’s invasion. With job losses, reduced incomes, and increasing utility bills, millions of Ukrainians are struggling with financial distress.Economic losses from the invasion have reached staggering figures, prompting 14.5 million Ukrainians to flee the country, while others face dire prospects at home. It is one of the countries with the highest unemployment rate in the world.
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Disclosure: None. 17 European Countries with the Highest Unemployment Rates is originally published on Insider Monkey.