Unemployment refers to the share of the working-age population that is currently without a job. The COVID-19 crisis had significantly affected the global labor market pushing unemployment rates to alarming levels. In the meantime, many advanced economies such as the UK, Canada, Australia, and the United States are facing large-scale labor shortages. This article explains the concept of unemployment and presents certain statistics and facts related to it.
What is unemployment?
Unemployment is a concept that refers to those members of society who are actively looking for but who are unable to find a job. This group also includes those who are working but are not in an appropriate position, for example, a junior accountant who works part-time at a local store while looking for suitable employment that matches her/his qualifications. Eurostat, the statistical office of the European Union (EU), defines an unemployed person as someone aged 15 to 74 who has actively looked for a job in the last four weeks prior to the time of analysis and who is available to start work within the following two weeks.
The unemployment rate is the percentage of unemployed people reported within the total labor force.
Unemployment and the COVID-crisis
The ongoing COVID-19 pandemic had caused severe turbulence in the global labor market. The problem is two-fold. On one hand, many people have lost their jobs, therefore, pushing unemployment rates to alarming levels. On the other hand, many advanced economies, such as the UK, Canada, Australia, and the United States are facing large-scale labor shortages. In 2021, the global unemployment rate is expected to reach 6.3% which translates to around 220 million people worldwide. This is 0.2% less than in 2020 but still above the 2019 pre-pandemic level of 5.4%. The International Labour Organization (ILO) expects that the global unemployment rate will stand at 5.7% in 2022.
Unemployment rate statistics in 2021
There are several facts and statistical indicators relating to the rates of unemployment:
See also: Why millions of Americans quit their jobs
DevelopmentAid is the leading provider of business intelligence and recruitment tools designed to assist those active in the development sector. Join today and gain access to exclusive information on upcoming funding opportunities (tenders and grants) from the largest bilateral and multilateral donors.