April 23, 2024
World Economy

25 Countries with the Highest Employment Rates in the World

In this article, we will look at the 25 countries with the highest employment rates in the world. We have also discussed the global economic landscape. If you want to skip our detailed analysis, head straight to the 10 Countries with the Highest Employment Rates in the World

According to the International Labour Organization’s World Employment and Social Outlook Trends 2024 report, just over 5% of the global workforce is currently unemployed. While this figure represents an improvement compared to the pre-pandemic era, the outlook remains uncertain, with an anticipated additional two million individuals expected to seek employment within the next year. Concurrently, the global economy faces its slowest growth period in three decades, as indicated by a recent World Bank report.

Notably, the disparity in economic circumstances persists between higher and lower income countries, with joblessness rates significantly higher in poorer nations. Despite efforts to address challenges such as inflation and informal employment, income inequality continues to widen, posing obstacles to achieving sustained economic recovery and social justice, according to ILO Director-General Gilbert Houngbo.

Speaking of recovery, in 2022 and early 2023, Meta Platforms Inc (NASDAQ:META) experienced major layoffs, affecting tens of thousands of employees. The company seemed to be transitioning into a period of austerity, marked by reduced teams, tighter budgets, and fewer perks. However, within a few months,  Meta Platforms Inc (NASDAQ:META)’s trajectory took a sharp turn as it announced plans for robust hiring in 2024. 

Despite the recent layoffs,  Meta Platforms Inc (NASDAQ:META) anticipates sizable growth in its workforce and payroll expenses to support priority areas, particularly focusing on higher-cost technical roles. Additionally,  Meta Platforms Inc (NASDAQ:META) aims to invest heavily in groundbreaking tech initiatives, such as the development of the “metaverse,” which includes augmented and virtual reality ecosystems.

Meta Platforms Inc (NASDAQ:META)’s reversal in hiring strategy reflects a broader trend among tech giants. Companies like Salesforce Inc (NYSE:CRM), after huge layoffs, are now embarking on large-scale rehiring endeavors, particularly in critical divisions such as engineering and data cloud. This resurgence in hiring confirms the demand for tech professionals with sought-after skills, even amidst economic fluctuations. 

With an aim to increase the competitiveness and employability of the youth, PepsiCo Inc (NASDAQ:PEP)’s $5 million Pathways to Readiness and Empowerment Program (PREP) has entered its third year, targeting the growth of career opportunities for over 3,000 youth from Chicago’s South and West Sides. Since its inception in 2021, PREP has impacted over 2,200 young individuals, offering career exposure, paid internships, credentialing, and full-time employment opportunities. This year, PepsiCo Inc (NASDAQ:PEP)’s reaffirms its commitment by awarding $250,000 to various local nonprofits, including Imagine Englewood if, Girls in the Game, and Southwest Organizing Project, among others.

One notable partnership is with Ladies of Virtue (LOV), which empowers girls in underserved areas, with a 100% college acceptance rate among its high school seniors. PepsiCo, Inc (NASDAQ:PEP) collaborated with LOV, providing funding for STEM-focused internships and career exploration experiences. Additionally, the Southwest Organizing Project (SWOP) has started a workforce program that aims to enroll 100 community members annually, projecting an annual income gain of $4 million reinvested into the community.

PepsiCo Inc (NASDAQ:PEP)’ 2024 National Hiring Day initiative also seeks to promote its Canadian workforce by recruiting over 800 individuals. Positions range from Warehouse Workers to sales representatives, dispersed across cities such as Calgary, Vancouver, Montreal, and Ottawa. Successful applicants stand to earn up to $15,000, making it a potentially lucrative opportunity. 

Despite training initiatives around the globe, AI is set to revolutionize the global economy, with nearly 40% of jobs worldwide facing its impact, either through replacement or augmentation. While advanced economies stand to benefit from AI’s integration, they also face heightened risks, with approximately 60% of their jobs vulnerable. In contrast, emerging markets and low-income countries face fewer immediate disruptions but lack the infrastructure and skilled workforce to fully capitalize on AI’s potential.

The advent of AI introduces the potential for increased income and wealth inequality within countries. Those able to harness AI may see an increase in productivity and wages, leaving others behind. Without proactive policies to address these disparities, AI could exacerbate existing social tensions. To mitigate these risks, comprehensive social safety nets and retraining programs are essential to ensure a more inclusive transition to an AI-driven world.

25 Countries with the Highest Employment Rates in the World25 Countries with the Highest Employment Rates in the World

25 Countries with the Highest Employment Rates in the World

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Our Methodology

For our list of the countries with the highest employment rates in the world, we relied on OECD’s Employment Rates (Total, % of working age population). In order to utilize the latest available information, we relied on OECD’s employment dataset from Q3 of 2023. The list is presented in ascending order below. 

By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

Here is a list of countries with the highest employment rates in the world:

25. Luxembourg

Employment Rate in Q3 2023: 70.57

Luxembourg boasts a robust and affluent economy marked by steady growth, minimal inflation, and a notable level of innovation. Unemployment typically remains low, although it rose to 6.1% by May 2012, primarily due to the global financial crisis of 2008. In 2011, according to the IMF, Luxembourg ranked as the world’s second-wealthiest country, with a per capita GDP of $80,119 on a purchasing-power parity (PPP) basis. Luxembourg had a GDP of $81.64 billion in 2022

24. Slovak Republic

Employment Rate in Q3 2023: 71.72

In 2023, despite its small population of 5 million, the country achieved a remarkable economic status, ranking as the 46th richest nation. This was reflected in its per capita gross domestic product (GDP) based on purchasing power parity, which stood at $42,228. Furthermore, its overall GDP reached $127.533 billion.

23. Latvia

Employment Rate in Q3 2023: 71.91 Over the past five years, Latvia’s economy and employment have been on an upward trajectory, despite a relatively higher unemployment rate. The nation has seen a notable increase in individuals with tertiary education, and prospects for Vocational Education and Training (VET) graduates remain promising. However, future projections suggest a potential reversal of this trend due to the challenges posed by the aging Latvian population. While certain sectors like accommodation & food, transport & storage, and health & social care may experience employment growth, overall workforce and working-age population (15-64) are anticipated to decline by 2030. 

22. United States

Employment Rate in Q3 2023: 72.04

The United States is a preeminent mixed economy, distinguished by its high level of development and advancement. Boasting the largest nominal GDP globally, it holds the second position in terms of purchasing power parity (PPP), trailing behind China. It ranks 22nd in employment rate by country.

21. Poland

Employment Rate in Q3 2023: 72.16

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:INTC).

20. Slovenia

Employment Rate in Q3 2023: 72.27

Slovenia has a well-developed economy and holds the title of being the wealthiest Slavic country in terms of GDP per capita. Renowned for its high human capital, Slovenia ranks among the top global economies in this aspect. 

19. Portugal

Employment Rate in Q3 2023: 72.77

Portugal’s economy rank 34th in the World Economic Forum’s 2019 Global Competitiveness Report. It heavily relies on trade within the EU. In 2020, 71.4% of its exports went to EU nations, while 74.6% of imports originated from the EU. It is one of the countries with the highest employment rates in 2023

18. Lithuania

Employment Rate in Q3 2023: 73.80

Lithuania is a highly developed country with a flourishing economy, boasting the 35th rank on the Human Development Index. It is a member of the European Union, the Council of Europe, the eurozone, the Nordic Investment Bank, the Schengen Agreement, NATO, and the OECD.

17. Ireland

Employment Rate in Q3 2023: 73.84

With a GDP per capita of $104,038.9 as of 2022, Ireland has given promising contributions to high-tech and financial services. The average annual salary in Ireland is €44,202, which equates to nearly $48,833, whereas the minimum wage for workers above 20 is nearly $12.4 per hour. It is one of the countries with the highest minimum wage in the world.

16. Finland

Employment Rate in Q3 2023: 73.86

While the country is one of the countries with the highest employment rates, Finland faces a mounting worker shortage in crucial sectors like healthcare and construction, prompting a proactive approach in recruiting skilled professionals globally. With increasing interest from abroad, Finland received 7,343 applications for work and residence permits in early 2023.

15. Austria

Employment Rate in Q3 2023: 74.00

While it is one of the countries with highest employment rates, Austria still plans to attract over 15,000 skilled workers annually from non-EU countries by 2027 through the Red-White-Red Card system. The reform aims to ease access to the labor market. It is also one of the countries with high employment rate for foreigners.

14. Hungary

Employment Rate in Q3 2023: 74.69

The first joint Job Fair organized by UNHCR and IOM in Budapest not only facilitated employment opportunities but also addressed systemic barriers hindering refugees and migrants from accessing the Hungarian job market. With over 150 participants, the event provided a platform for individuals to connect with employers, receive professional advice on CVs and job applications, and learn about their labor rights.

13. Czech Republic

Employment Rate in Q3 2023: 75.07

As of 2023, the Czech Republic has a GDP per capita of $51,329 at PPP and $29,856 nominally. It experienced a 4.5% GDP growth in 2017 with a low unemployment rate of 2.4% in 2016, ranking 27th in Economic Freedom and 31st in Global Innovation.

12. Canada

Employment Rate in Q3 2023: 75.63

In November, Canada saw a slight increase in the unemployment rate to 3.8%, yet it added 24,900 jobs, surpassing expectations. The Canadian Dollar experienced a modest rise, maintaining stability against the USD near two-month lows. It is one of the countries with the highest employment rates in 2024

11. Estonia

Employment Rate in Q3 2023: 76.07

In 2023, Estonia saw a rise in labor force participation, employment, and population, with 694,600 employed persons, an increase of 17,200 from the previous year. Notably, the influx of Ukrainian refugees contributed significantly to this growth. The number of employed women rose by 11,000 to 346,700, while employed men increased by 6,200 to 347,900.

Click here to see the 10 Countries with the Highest Employment Rates in the World.

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Disclosure: None. 25 Countries with the Highest Employment Rates in the World is originally published on Insider Monkey.

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