BUSINESS

Reviewed by Toby Walters
Fact checked by Amanda Jackson

The highest and lowest unemployment rates in the world vary dramatically, even among the world’s largest economies. And low unemployment does not necessarily mean a wealthy nation. Read on to discover the highest and lowest unemployment rates in the world, as well as how they compare to the largest economies.

Key Takeaways

• Unemployment typically measures individuals in the labor force, meaning those who are not working but are actively seeking work.
• The countries with the lowest unemployment rates are Qatar, Cambodia, and Niger.
• A low unemployment rate does not mean a nation’s citizens are well-off; the standard of living is determined by GDP per capita.
• The countries with the highest unemployment rates include Eswatini, South Africa, and Djibouti.

Unemployment Rates

Below are the countries with the highest and lowest unemployment rates, in addition to the unemployment rates of the world’s largest economies (ranked by GDP), according to the most recently available data from the World Bank.

Highest Unemployment Rates

The world’s five highest unemployment rates at the end of 2024 (latest information) were in Africa and occupied Palestine.

• Eswatini: 34.4%
• South Africa: 34.4%
• Djibouti: 25.9%
• West Bank and Gaza: 24.4%
• Botswana: 23.1%

Eswatini suffers from extreme poverty and the world’s highest HIV/AIDS prevalence rate, according to the CIA. HIV/AIDS tends to cause a substantial decline in productivity as households lose human capital to the disease. The GDP growth rate for 2024 was 3.65%, with GDP per capita at about $4,421.

South Africa had one of the highest unemployment rates in the world in 2023. It’s also the second-richest country in this grouping as measured by GDP per capita. The World Bank estimated its GDP per capita to be $6,332 at the end of 2024, with GDP growth of 0.58%.

Djibouti benefits from its location on the Red Sea, making it a bridge between Africa and the Middle East. Its economy is primarily driven by its port complex, which is one of the most advanced in the world. Its economy slowed in 2022 but rebounded significantly in 2023, with a GDP growth rate of 7.37% in 2023 and 6.51% in 2024.

The Palestinian territories of the West Bank and Gaza face an unsustainable situation due to a war with Israel. GDP growth in 2024 was estimated at -82% in Gaza, and -19% in the West Bank. However, the Palestinian Central Bureau of Statistics estimates that the growth rate will climb slightly (0.6%) through 2025 if the war continues, and increase significantly by 16.9% if the war ends.

Botswana is located in Southern Africa and benefits from diamond wealth, strong institutions, a small population, and smart economic management. It was one of the richest countries in this category as measured by GDP per capita, which was $7,117.10 in 2024.

Important

Part-time workers are counted as employed, and these figures don’t count people who give up looking for work for an extended period of time.

Lowest Unemployment Rates

Below are the ten countries with the lowest unemployment rates at the end of 2024:

• Qatar: 0.1%
• Cambodia: 0.3%
• Niger: 0.4%
• Thailand: 0.7%
• Burundi: 0.9%
• Chad: 1.1%
• Bahrain: 1.1%
• Lao PDR: 1.2%
• Vietnam: 1.4%
• Moldova: 1.4%

The above countries have stunning unemployment rates. All bested the U.S. by a considerable margin at the end of 2024.

Unemployment Rates for the World’s Largest Economies

The unemployment rates for the top 10 largest economies by GDP were predictably low at the end of 2023, with some outliers such as Brazil, France, and Italy.

• United States: 4.1%
• China: 4.6%
• Germany: 3.4%
• Japan: 2.6%
• India: 4.2%
• United Kingdom: 4.1%
• France: 7.4%
• Italy: 6.8%
• Brazil: 7.6%
• Canada: 6.5%

$30.51 Trillion

U.S. GDP as of May 2025.

Unemployment Rates and Economic Strength

Having a low unemployment rate does not necessarily mean a country’s economy is strong. For instance, in 2024, according to the World Bank and the International Monetary Fund, Niger had only 0.4% unemployment and a GDP per capita of $751.04. In 2024, Burundi had 0.9% unemployment and a GDP per capita of $489.94.

These countries have low unemployment figures in large part because their economies rely heavily on agriculture, which is labor-intensive but seasonal. Remember that the underemployed are still counted in employment figures. Even Laos, with a relatively healthy GDP per capita of $2,100 in 2024, still had an unemployment rate of 1.2%, with many in its workforce transitioning to agriculture from services.

Unemployment Parallel With a Rich Economy

Of course, it’s possible to have both low unemployment and a rich economy. This combination is seen in Qatar. According to the World Bank’s latest information, the GDP per capita in Qatar was $71,650 in 2024 (with an unemployment rate of 0.1%).

That wealth helps its standing in the low unemployment listed above, as a country’s unemployment rate only factors in those actively looking for work. The working-age child of rich parents may feel less pressure to earn money and be more inclined to spend it.

Qatar’s economy is driven by oil and natural gas, hence its extreme wealth. However, it’s been making a sustained push to diversify into technology, marketing, construction, restaurants, and hotels.

What Is the Global Unemployment Rate?

According to the World Bank, the global unemployment rate was 5% in 2023, an improvement from 4.9% in 2024.

What Is Not Included in the U.S. Unemployment Rate?

The unemployment rate only takes into consideration the labor force. The labor force consists of those individuals who are currently working and those who are not working but who are looking for work. If an individual has not been looking for work in the previous four weeks, they are not considered part of the labor force and do not factor into the unemployment rate.

What Is the U.S. Unemployment Rate?

The unemployment rate in the U.S. as of Apr 2025 was 4.2%. This was the same as the previous month, but an increase from January and February.

The Bottom Line

The global unemployment rate is moderate, but the world still faces challenges that include inflation, ongoing global supply chain problems, and instability as policy shifts test the trade system. Globally, growth is expected to be underwhelming as tensions between trading partners are slowly unwound and local economies recover from tariff shocks and uncertainty.

Reviewed by Julius Mansa
Fact checked by Michael Rosenston

With its massive population and bustling economy, India is an engine of growth. As the Indian economy has grown, so has the value of its public companies.

In 2024, India’s stock market capitalization surpassed Hong Kong’s for the first time, becoming the fourth-largest market for public equities in the world. According to data compiled by Bloomberg, on Jan. 22, 2024, the value of shares listed on Indian exchanges reached $4.33 trillion, compared to $4.29 trillion for Hong Kong.

Key Takeaways

• India has two primary stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
• The BSE is India’s oldest stock exchange.
• India’s exchanges are regulated by the Securities Exchange Board of India (SEBI).
• The two prominent Indian market indexes are Sensex and Nifty.

The BSE and NSE

Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE was established in 1875. The NSE was founded in 1992 and started trading in 1994. Both exchanges follow the same trading mechanism, trading hours, and settlement process.

As of the start of 2025, the BSE had 5,595 listed firms, whereas the rival NSE had 2,266 as of Jan. 30, 2024. Almost all the significant firms of India are listed on both exchanges. The BSE is the older stock market, and the NSE is the largest in volume.

Trading and Settlement

Trading on both exchanges is through an open electronic limit order book where order matching is done by the trading computer. There are no market makers, and the entire process is order-driven by investors matched with the best limit orders. Buyers and sellers remain anonymous.

An order-driven market brings more transparency by displaying all buy and sell orders in the trading system. Institutional investors can use the direct market access (DMA) option, using trading terminals provided by brokers for placing orders directly into the stock market trading system.

Equity spot markets follow a T+1 rolling settlement, with any trade on Monday getting settled by Tuesday. All trading is conducted between 9:15 a.m. and 3:30 p.m., Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form. Each exchange has its own clearing house, which assumes all settlement risk by serving as a central counterparty.

Market Indexes

The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE. It was created in 1986 and provides time series data from 1979 as the base year.

The Standard and Poor’s CNX Nifty includes 50 shares listed on the NSE. It was created in 1996.

Market Regulation

The development, regulation, and supervision of India’s stock market rests with the Securities and Exchange Board of India (SEBI), formed in 1992 as an independent authority. Since then, SEBI has consistently tried to lay down market rules in line with the best market practices. It enjoys vast powers of imposing penalties on market participants in case of a breach.

Investing in India’s Markets

India permitted outside investments in the 1990s. Foreign investments are classified into two categories: foreign direct investment (FDI) and foreign portfolio investment (FPI). All investments in which an investor takes part in the day-to-day management and operations of the company are treated as FDI, whereas investments in shares without any control over management and operations are treated as FPI.

To make portfolio investments in India, one must be a foreign institutional investor (FII) or one of the sub-accounts of one of the registered FIIs. Both registrations are granted by the market regulator, SEBI. Foreign institutional investors mainly consist of mutual funds, pension funds, endowments, sovereign wealth funds, insurance companies, banks, and asset management companies. FIIs can also invest in unlisted securities outside stock exchanges, subject to the approval of the price by the Reserve Bank of India.

Important

India is projected to surpass Japan as the world’s fourth-largest economy sometime in 2025, with an estimated GDP of $4.19 trillion.

Restrictions and Investment Ceilings

The government of India prescribes the FDI limit, and different ceilings have been prescribed for different sectors. The maximum limit for portfolio investment in a particular listed firm is decided by the FDI limit prescribed for the sector to which the firm belongs. However, there are two additional restrictions on portfolio investment.

According to SEBI, an FII can invest up to 10% of the equity of any one company, subject to the 24% limit on overall investments. The 24% limit may be raised to 30% for individual companies that have received shareholder approval to do so. FIIs are allowed to invest 100% of their portfolios in debt securities.

Investments for Foreign Entities

Foreign entities and individuals can gain exposure to Indian stocks through institutional investors. Investments can be made through some of the offshore instruments, like participatory notes (PNs), depositary receipts, such as American depositary receipts (ADRs) and global depositary receipts (GDRs), exchange-traded funds (ETFs), and exchange-traded notes (ETNs).

Participatory notes representing underlying Indian stocks can be issued offshore by FIIs, only to regulated entities, but small investors can invest in American depositary receipts representing the underlying stocks of some of the well-known Indian firms, listed on the New York Stock Exchange and Nasdaq. ADRs are denominated in dollars and subject to the regulations of the U.S. Securities and Exchange Commission (SEC).

Retail investors can invest in ETFs and ETNs, based on Indian stocks. India-focused ETFs mostly make investments in indexes made up of Indian stocks. Most of the equities included in the index are listed on the NYSE and Nasdaq. Two ETFs based on Indian stocks include the iShares MSCI India ETF (INDA) and the Wisdom-Tree India Earnings Fund (EPI).

What Is the Main Stock Market in India?

The main stock market in India is the Bombay Stock Exchange (BSE) which has around 5,500 listed firms. The second-largest exchange is the National Stock Exchange, with over 2,200 listed firms, many of them cross-listed on the BSE.

What Is the Largest Company on the Indian Stock Market?

The largest company on the Bombay Stock Exchange (BSE) is Reliance Industries with a market cap of over $230 billion as of May 18, 2025.

Can Americans Invest in the Indian Stock Market?

Yes, Americans can invest in the Indian stock market. There are a few ways of doing so, such as investing in exchange-traded funds (ETFs) or purchasing American depository receipts (ADRs) of the company.

The Bottom Line

Most of the trading in the Indian stock market takes place in the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As of 2024, India ranked as the fourth-largest market in the world. The two dominant Indian market indexes are Sensex and Nifty.

Fact checked by Vikki Velasquez

Whether you were unable to save as much as you hoped to when you were younger or had to dip into your retirement accounts early, leaving the workforce with limited savings can make fully retiring difficult.

According to a 2024 BlackRock survey, less than half (47%) of retirement savers said they felt they were on track to retire with the lifestyle they wanted. Three-fifths said they were worried they would outlive their retirement funds.

Retiring with a smaller nest egg can be challenging, but with strategic planning and informed decisions, it’s possible to transition into retirement successfully.

Key Takeaways

• It’s possible to retire with limited savings, but you may need to draft a financial plan and explore alternative income sources like part-time work or home equity.
• Delaying Social Security benefits can significantly boost retirement income, but it may only make sense if you have other funds to bridge the gap.
• There’s no one-size-fits-all approach to retirement, so decisions like how much to save, whether to relocate or downsize, and when to claim Social Security should be based on your finances and personal circumstances.

Take Stock of Your Finances

Before you decide to retire, it’s essential to get an idea of your finances. You’ll want to take stock of how much you have saved up across different accounts, whether that’s your bank accounts, brokerage accounts, 401(k)s, or individual retirement accounts (IRAs).

“‘Do I have enough?’ This is probably the question I get asked the most often,” said MaryAnne Gucciardi, a CFP and founder of Wealthmind Financial Planning. “For clients, I start with a model [that includes] what they’re spending, what’s coming in, and what they really want to do.”

Ultimately, how much you want to have saved up depends on what you think you’re spending will look like in retirement.

The 4% Rule

If you don’t have a financial planner, it could be helpful to use a common rule-of-thumb, like the 4% rule, to figure out if you have enough money.

With the 4% rule, a retiree can take a 4% withdrawal from their nest egg the first year of retirement and then adjust it every year after that for inflation. This approach is designed to make your savings last for approximately 30 years.

If your annual expenses are $60,000, by following the 4% rule, you would aim to save 25 times that amount, or $1.5 million.

This approach, however, doesn’t account for the income you’ll receive from Social Security or the fact that you’ll no longer have 401(k) or IRA contributions in retirement. Therefore, you may consider saving less than that amount, as your spending may decline in retirement.

You can also use retirement savings tables online to help you figure out if you’re on track to retire based on your age and income.

At the end of the day, these are just general guidelines, so make sure to personalize them.

Funding The Shortfall

After you’ve taken stock of your finances, there are many ways to try to fund the gap in your retirement savings.

“People can work part-time, they can downsize, they can relocate, they can have children move-in and share rent, mortgage, and other expenses. There are so many creative ways to get to retirement that you love,” said Gucciardi.

Consider Working Longer

If you’re still able to work, consider extending your career a bit longer—this gives you extra time to build up your savings, a shorter retirement to fund, and possibly the ability to delay collecting Social Security benefits.

And for those who are unable to continue to work full-time or in-person, there are some types of gig work—like freelance writing or tutoring—can be done entirely from home, offering retirees flexibility and the opportunity to create their own schedules.

Take Advantage of IRA Catch-Up Contributions

Those who continue to work can put additional money towards retirement. For IRAs, individuals age 50 and over can make contributions worth up to $8,000 for 2025. (The IRA and catch-up contribution limits are $7,000 and $1,000, respectively.)

Additionally, if you have a workplace retirement plan and are age 50 or older, you may be eligible to make catch-up contributions worth up to $7,500 for 2025. The total annual contribution limit, including the catch-up for 401(k)s is $31,000.

Plus, under SECURE 2.0, a federal retirement law, workers aged 60, 61, 62, and 63 are now able to make larger catch-up contributions, up to $11,250 in 2025.

Take a Look at Your Home Equity

If you own a home, you may not consider your home equity when evaluating your retirement nest egg. However, some retirees may be able to free up extra funds by selling their home and downsizing or moving to a lower-cost-of-living area in retirement.

One Vanguard study found that 60% of retirees who move end up in an area with a cheaper housing market. By moving to a location with a more affordable housing market, retirees unlocked a median home equity of approximately $100,000.

Note that this may not be practical option for everyone, especially for those who currently live in a low cost of living area but plan to move to more expensive region. Gucciardi also notes that retirees shouldn’t solely relocate based on cost, but should take a more holistic approach to their decision.

“When I have clients who say they are going to move or relocate to a low-cost area, I drill down and ask them: Who is going to take them to appointments? Are they moving someplace where they have a community?” said Gucciardi. “At some point, you will need more help and need a network.”

Think Carefully About When to Collect Social Security

By delaying Social Security, retirees can earn extra money to the tune of hundreds of thousands of dollars over the course of retirement, yet delaying might not be the right choice for everyone.

When choosing when to start collecting benefits, carefully weigh factors such as your health status, family medical history, whether you have a spouse who will collect on your record, life expectancy, and if you have additional retirement funds to rely on if you choose to delay.

Waiting to collect past full retirement age (FRA)—which is age 67 for retirees born in 1960 or later—results in an 8% annual boost in benefits up to age 70. That means retirees can earn up to 124% of their benefit by delaying.

For example, if your monthly benefit is $2,000 at age 67, it would be $2,480 if you waited until age 70. That would be an additional $5,760 a year.

Yet waiting past FRA may not be the best strategy for everyone.

In a 2024 Morningstar study, researchers found that waiting until age 70 is often a better strategy for individuals who don’t need money immediately, are healthy, and, if they’re no longer working, have other funds and retirement accounts they can tap while they wait until age 70 to collect.

The Bottom Line

Retiring with limited savings isn’t easy, but it is doable with the right planning. Start by understanding your current finances and consider creative ways to fill the gap, like part-time work, putting extra money into your 401(k) or IRA, or tapping home equity.

You’ll also want to be deliberate about when you collect Social Security benefits–delaying benefits can pay off, but it may not be the right option if you’re in poor health or urgently need money.