In this article, we will look at the 25 countries with the lowest unemployment rates in the world. We have also covered interesting insights about the economies of these countries along with their business climate for multinational companies. If you want to skip our detailed analysis, head straight to the 10 Countries with the Lowest Unemployment Rates in the World.
Countries with low unemployment rates often have stable economies and a high quality of life for their citizens. These countries typically have well-developed job markets, effective labor policies, and investments in education and training. According to OECD data, the Netherlands was the country with the highest employment rate of 80.15% in 2021. On the other hand, per BLS, Maryland is the state with the lowest unemployment rate in the US.
One common feature we observed in these countries is that they tend to have a diverse range of industries and economic sectors. This diversity opens doors for a plethora of employment opportunities and thus, reduces the overall unemployment rate. For instance, countries like Qatar and Bahrain have diversified their economies beyond oil and gas.
Another common trend we identified in countries with low unemployment rates is the presence of a favorable business climate for multinational companies. These countries tend to offer regulatory stability that ensures a consistent legal framework for businesses to operate within. Such predictability enables companies to plan long-term strategies and investments while expanding their operations without huge disruptions.
Coca Cola Co (NYSE:KO) is one of such companies. The company has expanded itself to over 200 countries and territories, creating jobs all around the world. Together with its 200 bottling partners, Coca Cola Co (NYSE:KO) has created around 0.7 million jobs. The company also achieved exceptional financial results in the second quarter and first half of 2023. Coca-Cola Co (NYSE:KO)’s worldwide reach is a key driver behind its exceptional financial performance.
Net revenues of the company increased by 6% to $12.0 billion, driven by an 11% growth in organic revenues, with a 10% rise in price/mix and 1% in concentrate sales. Operating income saw a 3% increase, and comparable currency-neutral operating income increased by 15% compared to the prior year. The operating margin was 20.1%, while comparable operating margin stood at 31.6%, both compared to the prior year. Earnings per share (EPS) grew by 34% to $0.59, with comparable EPS growing by 11% to $0.78.
Multinationals often benefit countries in which they operate is by investing in large-scale projects that generate hundreds of jobs.
For example, Siemens AG (OTC:SI) is poised to be a major job creator in Fort Worth, Texas, with its $133 million manufacturing plant project. In the short term, the company has committed to bringing 167 full-time jobs to the area by the end of 2024 which will provide immediate employment opportunities for the local workforce. However, Siemens AG (OTC:SIEGY)’s long-term vision will translate into the expansion of the workforce to 715 jobs by the end of 2026 for the local market.
It is worth mentioning that Siemens AG(OTC:SIEGY) also places a strong emphasis on job quality and has thus, set a minimum average annual salary requirement of $63,000 for these positions. This ensures that the jobs created are not only numerous but also offer competitive wages which will result in improved living standards and economic prosperity for the Fort Worth community.
The efforts are not limited to just the local communities in the US, in fact, Siemens AG (OTC:SIEGY) is actively putting an effort to generate jobs in both Singapore and China through strategic investments. In Singapore, Siemens plans to establish a modern high-tech factory with an investment of €200 million ($210 million), which is expected to generate 400 new jobs.
These jobs will span various functions like advanced manufacturing, supply chain management, quality management, and finance. Not only that but Siemens AG (OTC:SIEGY) will also expand its digital factory in Chengdu, China, with an investment of €140 million ($147 million) with an aim to create another 400 jobs. Siemens AG (OTC:SIEGY) is also one of the Top AI and Robotics Companies Transforming the Agriculture Sector.
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Methodology
To list the countries with the lowest unemployment rates in the world, we utilized the unemployment rates provided by the World Bank, ensuring that the list is based on reliable and objective statistics. We have also made our list more descriptive by discussing respective GDPs for many countries. The unemployment rates were acquired from World Bank data for the most recent year, i.e., 2022, for all 25 countries.
Here is a list of countries with the lowest unemployment rates in the world:
25. Japan
Unemployment Rate: 2.6%
Japan is one of the most developed countries in the world and especially in Asia. In 2021, the GDP of Japan stood at $4.23 trillion.
Intel Corp (NASDAQ:INTC)’s upcoming purchase of Tower Semiconductor means it will soon have two manufacturing sites in Japan which will boost its presence in the semiconductor industry. Since Japan is known for its expertise in 3D packaging technology that is crucial for stacked chip configurations along with a business-friendly climate, this collaboration with Intel Corp (NASDAQ:INTC) highlights Japan’s importance in the semiconductor supply chain.
24. Cote d’Ivoire
Unemployment Rate: 2.6%
Côte d’Ivoire has sustained remarkable economic growth with an average GDP growth of 8.2% from 2012 to 2019. Despite a slight dip to 6.7% in 2022 due to global challenges, it maintains a positive trajectory which is driven by private consumption and public investment. Inflation reached 5.2% in 2022, primarily due to rising food, transport, and energy prices. Cote d’Ivorie had a GDP of $77.05 billion in 2021.
23. Lao PDR
Unemployment Rate: 2.6%
Lao PDR is a Southeast Asian country with a GDP of $18.53 billion in 2021. It is one of the socialist countries alongside China, Cuba, Vietnam, and North Korea with the adoptation of an economic model similar to the Chinese and Vietnamese socialist-oriented market economies.
22. Macao SAR
Unemployment Rate: 2.6%
With a GDP of $30.12 billion in 2021, Macao is a small region with a population of 680,000 people and is one of the most densely populated countries in the world. Macao’s economy depends largely on gaming and tourism as it has the world’s largest gaming industry which is seven times larger than Las Vegas’s gaming industry.
21. Poland
Unemployment Rate: 2.6%
After COVID-19, Poland’s resilient economy rebounded strongly in 2021, with a GDP of $679.4 billion. The driving factors for this growth were the EU investment funds, stable labor markets, and improved poverty and growth policies. Poland is one of the countries with the lowest unemployment rates in Europe.
Poland is home to a number of multinational companies like Procter and Gamble Co (NYSE:PG) and Intel Corporation (NASDAQ:INTL)
20. Guatemala
Unemployment Rate: 2.6%
Guatemala has a low unemployment rate of 2.6%, but this paradox masks a harsh reality. The unemployment rate is low because many rely on informal, unregulated jobs, while half the population lives in poverty. It is one of the countries with the lowest unemployment rates in the world.
19. Kuwait
Unemployment Rate: 2.5%
Kuwait’s oil wealth, financial policies, and diversification efforts have led to a stable economy with low inflation. In 2021, the GDP of Kuwait stood at $136.8 billion. It is also one of the countries without income tax.
18. Czech Republic
Unemployment Rate: 2.4%
For 2023, the GDP growth is expected to be 0.3% due to factors like high energy prices, tight financing, and inflation. It is one of the countries with the best employment rates in the world at 74.40% in 2021 while the GDP stood at $281.79 billion.
17. Oman
Unemployment Rate: 2.3%
Oman’s economy primarily revolves around its oil industry, while its coastal regions focus on fishing and trade-related activities. The GDP of Oman was recorded at $88.19 billion in 2021. It is one of the countries with the lowest unemployment rates in the world.
16. Moldova
Unemployment Rate: 2.3%
Moldova’s recovery from economic challenges in 2022, like the energy crisis, high inflation, and agricultural decline, has begun slowly in 2023. Energy diversification and EBRD loans are helping with recovery.
One of the most popular companies operating in Moldova is Procter and Gamble Co (NYSE:PG).
15. Philippines
Unemployment Rate: 2.2%
The recent Procter & Gamble Co (NYSE:PG)’s partnership with Conservation International focuses on preserving the Philippines’ Mantalingahan Landscape. In a five-year effort, they protect an area housing over 1,000 plant and animal species, 10% of which are endangered. This will protect different ecosystems that benefits both biodiversity and the livelihoods of over 12,000 Indigenous people.
14. Madagascar
Unemployment Rate: 2.1%
Madagascar with a 2021 GDP of $14.56 billion, is a market-driven economy. The economy thrives on agriculture, tourism, textiles, and mining, yielding tropical staples like rice and cassava, along with valuable cash crops such as vanilla and coffee. It is one of the countries with the lowest unemployment rates in the world.
13. Vanuatu
Unemployment Rate: 2.1%
Vanuatu has a low unemployment rate owing to its diversified economy which is reliant on agriculture, tourism, offshore finance, and raising cattle. Moreover, fishing, copra, kava, beef, cocoa, and timber exports contribute to economic stability.
12. Vietnam
Unemployment Rate: 1.9%
Vietnam is an economic success that transformed itself from being a poor to a middle-income economy in one generation, with GDP per capita growing 3.6 times since 2002.
Intel Corporation (NASDAD:INTL) is set to increase its $1.5 billion investment in Vietnam by potentially injecting over $1 billion more into its chip testing and packaging plant. As Vietnam has a growing role in the global semiconductor supply chain, this expansion also helps Intel Corporation (NASDAQ:INTL) diversify its manufacturing sources while also reducing reliance on China and Taiwan.
11. Benin
Unemployment Rate: 1.7%
Benin’s economy relies on subsistence agriculture and cotton, with cotton making up a huge part of its GDP and exports. It also produces textiles, palm products and cocoa which ensures an overall high employment rate.
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Disclosure: 25 Countries with the Lowest Unemployment Rates in the World is originally published on Insider Monkey.