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5 European Countries with the Highest Unemployment Rates

Publication date: 23.05.2024

There are significant differences in the highest and lowest unemployment rates in the globe, even among the largest economies in the world. Individuals in the labour force, or those who are unemployed but actively looking for work, are often measured for unemployment. A country's GDP per capita determines the standard of living for its people, not just its low unemployment rate. In this article we'll examine the five European nations with the highest unemployment rates.

5. Greece

Unemployment Rate: 12.4%

Greece's economic journey was marked by a series of crises and eventual economic collapse. Greece had higher investment and cheaper interest rates after entering the Eurozone in 2001. Still, nothing was done to address the structural problems with its economy, which included low productivity and tax cheating. Greece's weak economic base was further exposed by the global financial crisis of 2007, which resulted in the country's 2015 debt default to the IMF of €1.6 billion ($1.7 billion). The ensuing rescue packages from international creditors, amounting to €289 billion ($316.27 billion), came with strict austerity measures that made unemployment rates worse. In August 2012, the rate reached a peak of 25.7%.

4. Bosnia and Herzegovina

Unemployment Rate: 12.7%

In addition to the nation's high unemployment rate, concerns over income disparities in Bosnia and Herzegovina is also growing. According to a recent survey, women in Bosnia and Herzegovina provide unpaid care for almost six hours a day, while males provide slightly more than three hours. Just 27% of males cook every day, compared to 85% of women. The unequal weight of care obligations is highlighted in the paper "Baseline Study on Care Economy in Bosnia and Herzegovina," which was done in 2022 by UN Women BiH and the Economic Institute Sarajevo with support from Sweden. This discrepancy restricts women's access to the labour market and promotes gender inequity.

3. Spain

Unemployment Rate: 12.9%

Due to lower productivity, Spain's jobless rate increased to 2.77 million in January. 58,721 more people lost their jobs in the services sector; increases were also seen in industry and agriculture. The overlapping labour market, strict regulations, and reliance on temporary contracts in Spain worsen unemployment, which disproportionately affects young, inexperienced, and immigrant workers, even while the construction industry is shrinking. Furthermore, Spain struggles with consistently low productivity, especially in smaller businesses, which makes it difficult to create jobs. In response, Spain offers subsidies and reduced VAT as a means of supporting the cost of living in the face of skyrocketing inflation. These difficulties continue despite worldwide unpredictabilities such as the COVID-19 pandemic and the Russia-Ukraine conflict.

2. North Macedonia

Unemployment Rate: 14.4%

Seventy-two percent of North Macedonians report having trouble managing their household income. The country has one of the lowest per capita GDPs in The European Union due to corruption and legal inefficiencies that impede economic progress. The GDP is over 20% comprised of the grey market. Its GDP per person in 2017 was 36% of the EU average. North Macedonia is less developed and economically larger than the former Yugoslav states, with a GDP per capita of US$9,157 and a Human Development Index of 0.701.

1. Montenegro

Unemployment Rate: 15.3%

The unemployment rate in Montenegro fell to 13.38% in January 2024 from 13.95% in the previous month. This is a considerable decrease from the 16.30% recorded in January 2023. By the end of February, there were 38,014 unemployed people, a 14% decrease from the previous year. 39,942 people were unemployed in Montenegro in December. The industries with the highest unemployment rates were wholesale/retail commerce (19.57%), state administration (9.34%), and construction (7.44%). The nation experienced an 8.5% yearly gain in employment, reaching 246,449 by December, despite a monthly loss of 0.22%. January saw a 69% year-over-year decline in Montenegro's fiscal surplus, and net foreign direct investment fell by 45% in 2023. It is the country in Europe with the highest level of unemployment.

Conclusion

The unemployment landscape in Europe shows stark disparities, with Greece, Bosnia and Herzegovina, Spain, North Macedonia, and Montenegro having the highest rates. Each country faces unique challenges: Greece struggles with economic crises and austerity measures, Bosnia and Herzegovina with gender inequalities, Spain with labour market rigidity, North Macedonia with economic inefficiencies and corruption, and Montenegro with structural issues despite recent improvements. These cases highlight the complex factors influencing unemployment across Europe.

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There are significant differences in the highest and lowest unemployment rates in the globe, even among the largest economies in the world. Individuals in the labour force, or those who are unemployed but actively looking for work, are often measured for unemployment. A country's GDP per capita determines the standard of living for its people, not just its low unemployment rate. In this article we'll examine the five European nations with the highest unemployment rates. 5. Greece Unemployment Rate: 12.4% Greece's economic journey was marked by a series of crises and eventual economic collapse. Greece had higher investment and cheaper interest rates after entering the Eurozone in 2001. Still, nothing was done to address the structural problems with its economy, which included low productivity and tax cheating. Greece's weak economic base was further exposed by the global financial crisis of 2007, which resulted in the country's 2015 debt default to the IMF of €1.6 billion ($1.7 billion). The ensuing rescue packages from international creditors, amounting to €289 billion ($316.27 billion), came with strict austerity measures that made unemployment rates worse. In August 2012, the rate reached a peak of 25.7%. 4. Bosnia and Herzegovina Unemployment Rate: 12.7% In addition to the nation's high unemployment rate, concerns over income disparities in Bosnia and Herzegovina is also growing. According to a recent survey, women in Bosnia and Herzegovina provide unpaid care for almost six hours a day, while males provide slightly more than three hours. Just 27% of males cook every day, compared to 85% of women. The unequal weight of care obligations is highlighted in the paper "Baseline Study on Care Economy in Bosnia and Herzegovina," which was done in 2022 by UN Women BiH and the Economic Institute Sarajevo with support from Sweden. This discrepancy restricts women's access to the labour market and promotes gender inequity. 3. Spain Unemployment Rate: 12.9% Due to lower productivity, Spain's jobless rate increased to 2.77 million in January. 58,721 more people lost their jobs in the services sector; increases were also seen in industry and agriculture. The overlapping labour market, strict regulations, and reliance on temporary contracts in Spain worsen unemployment, which disproportionately affects young, inexperienced, and immigrant workers, even while the construction industry is shrinking. Furthermore, Spain struggles with consistently low productivity, especially in smaller businesses, which makes it difficult to create jobs. In response, Spain offers subsidies and reduced VAT as a means of supporting the cost of living in the face of skyrocketing inflation. These difficulties continue despite worldwide unpredictabilities such as the COVID-19 pandemic and the Russia-Ukraine conflict. 2. North Macedonia Unemployment Rate: 14.4% Seventy-two percent of North Macedonians report having trouble managing their household income. The country has one of the lowest per capita GDPs in The European Union due to corruption and legal inefficiencies that impede economic progress. The GDP is over 20% comprised of the grey market. Its GDP per person in 2017 was 36% of the EU average. North Macedonia is less developed and economically larger than the former Yugoslav states, with a GDP per capita of US$9,157 and a Human Development Index of 0.701. 1. Montenegro Unemployment Rate: 15.3% The unemployment rate in Montenegro fell to 13.38% in January 2024 from 13.95% in the previous month. This is a considerable decrease from the 16.30% recorded in January 2023. By the end of February, there were 38,014 unemployed people, a 14% decrease from the previous year. 39,942 people were unemployed in Montenegro in December. The industries with the highest unemployment rates were wholesale/retail commerce (19.57%), state administration (9.34%), and construction (7.44%). The nation experienced an 8.5% yearly gain in employment, reaching 246,449 by December, despite a monthly loss of 0.22%. January saw a 69% year-over-year decline in Montenegro's fiscal surplus, and net foreign direct investment fell by 45% in 2023. It is the country in Europe with the highest level of unemployment. Conclusion The unemployment landscape in Europe shows stark disparities, with Greece, Bosnia and Herzegovina, Spain, North Macedonia, and Montenegro having the highest rates. Each country faces unique challenges: Greece struggles with economic crises and austerity measures, Bosnia and Herzegovina with gender inequalities, Spain with labour market rigidity, North Macedonia with economic inefficiencies and corruption, and Montenegro with structural issues despite recent improvements. These cases highlight the complex factors influencing unemployment across Europe.