In this article, we will look at the 10 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 in another article. If you are interested in reading about that along with a more extensive list, head straight to 25 Countries with the Lowest Unemployment Rates in the World.
10. Solomon Islands
Unemployment Rate: 1.5%
In the Solomon Islands, over 75% of the workforce relies on subsistence farming and fishing. The low unemployment rate can be attributed to the presence of traditional livelihoods, as well as limited industrialization and employment opportunities in other sectors like agriculture, palm oil production, and gold mining. The GDP of the Soloman Islands in 2021 was $1.55 billion.
9. Myanmar
Unemployment Rate: 1.5%
Myanmar, despite having one of the world’s lowest unemployment rates, confronts daunting labor market challenges. The employment-to-population ratio plummeted to 54.5% in 2022 which is a decrease of 8.2 percentage points from 2017. Labor productivity witnessed an 8% decline in 2021, followed by an additional 2% loss in the first half of 2022. The GDP of Myanmar in 2021 was $65.16 billion.
8. Chad
Unemployment Rate: 1.4%
Chad’s Human Capital Index score of 0.30 indicates that a child born today faces a 70% decrease in future productivity owing to inadequate education and healthcare. Additionally, 20% don’t reach age five, 40% experience stunted growth which harms their cognitive development. Despite that, their unemployment rate is amongst the lowest in the world. The GDP of Chad in 2021 stood at $11.8 billion.
7. Cuba
Unemployment Rate: 1.4%
Cuba’s low unemployment rate is influenced by its state-dominated economy, where a majority of the workforce is employed by the government. In recent years, the country has also adopted limited private-sector activity and foreign investment. Hence, their government-provided services like education, healthcare, and subsidies contribute to employment stability.
6. Bahrain
Unemployment Rate: 1.4%
Like most countries with low unemployment rates, Bahrain has a diversified economy but relies majorly on the oil and gas sector. Nevertheless, it has a flourishing banking and financial services industry, and a burgeoning tourism sector, all of which offer abundant job opportunities. The GDP of Bahrain in 2021 was $39.3 billion.
5. Burundi
Unemployment Rate: 1.0%
Burundi has an economy largely reliant on agriculture and thus, employs over 70% of the workforce, mainly in subsistence farming. Despite potential food self-sufficiency, civil unrest, overpopulation, and soil erosion have hindered economic growth. The GDP of Burundi in 2021 was $3.35 billion.
4. Thailand
Unemployment Rate: 0.9%
Thailand’s low unemployment rate can be attributed to its diversified economy, with a 2022 GDP of $536 billion, large export-dependent industries, and expanding service sectors. In 2021, their exports accounted for 58% of GDP, while a strong current account surplus and international reserves contributed to economic stability.
3. Niger
Unemployment Rate: 0.5%
In 2021, Niger’s GDP was $14.92 billion and was largely driven by subsistence agriculture, raw commodity exports, and internal markets. Despite its vast resources and stable government, Niger ranks low on the Human Development Index as of 2019. It depends on aid, livestock, agriculture, and uranium exports and currently faces economic challenges and heavy debt burdens.
2. Cambodia
Unemployment Rate: 0.4%
Cambodia has one of the lowest unemployment rates in the world thanks to its rapidly growing industries like textiles and tourism. It is worth mentioning that agriculture is a vital source of income in rural areas in Cambodia. The GDP of Cambodia in 2021 was $26.6 billion.
1. Qatar
Unemployment Rate: 0.1%
Qatar is the country with the lowest unemployment rate in the world as it has a highly stable economy supported by petroleum and natural gas exports. Despite regional sanctions, Qatar’s diversified export partners like Japan, South Korea, India, and China, ensure a stable demand for its energy products, sustaining employment opportunities. The GDP of Qatar in 2021 was $179.68 billion.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at 25 Best Work from Home Jobs for 2023 and 25 Best Summer Jobs for College Students.
Hedge Fund Resource Center