Eswatini records world’s highest unemployment rate

THE country has emerged with the highest unemployment rate globally in the latest comparable 2025 estimates.

This has put the country ahead of South Africa, Djibouti and Botswana in a league table that exposes the depth of its jobs crisis.

The latest World Bank data shows Eswatini’s unemployment rate at 34.2% of the labour force in 2025, the highest recorded among countries with comparable observations.

South Africa follows at 32.4%, while Djibouti is third at 26.0% and Botswana fourth at 24.5%.

This essentially means that more than one in every three people in local labour force was unemployed according to the latest modelled estimate.

The World Bank’s indicator is based on the International Labour Organisation’s modelled estimates, meaning the figures are designed to provide a comparable measure across countries rather than simply comparing each country’s own national unemployment methodology.

Eswatini is not only dealing with a high unemployment rate; but it is also struggling to create enough formal employment opportunities for a growing working-age population.

The World Bank has described unemployment as a serious constraint on Eswatini’s ability to improve living standards.

Its latest Eswatini economic update said unemployment had risen from 23% in 2016 to 35.4% in 2023, with job opportunities continuing to be concentrated in the informal sector.

The World Bank identified several structural reasons for the problem, including low job creation, the decline of traditional employment sectors such as agriculture, limited skills, a mismatch between skills and available jobs, as well as inadequate support for unemployed people.

The jobs crisis is particularly severe among young people as the World Bank says 52.2% of people aged 15 to 24 were unemployed in 2025.

This translates to a two-level unemployment crisis: the national rate is already exceptionally high, while the rate among young people is substantially higher.

South Africa, whose unemployment crisis has attracted international attention for years, recorded a modelled rate of 32.4% in 2025 making Eswatini 1.8 percentage points higher.

Botswana, another Southern African country with historically high unemployment, recorded 24.5%, almost 10 percentage points below Eswatini.

Lesotho’s comparable rate was 16.3%, while Namibia recorded 19.3%.

The World Bank has argued that the country needs to address structural constraints, diversify the economy, improve the business environment and use digital transformation to support growth and job creation.

Unemployment a challenge, but – Govt

COMMUNICATIONS Officer in the Ministry of Labour and Social Security Nompilo Mncina said this issue involved several ministries and departments.

She said the ministry of labour had already done interventions like the labour force survey, the skills audit and the compilation of the skills anticipation report.

“Through one of our surveys we actually found that the rate of young unemployment was declining,” she said.

Acting Government Spokesperson Thabile Mdluli said government is fully cognisant of the challenge of unemployment in the country, particularly youth unemployment and has therefore placed job creation and economic empowerment at the centre of the national development agenda.

“The Nkwe Programme of Action, for instance, prioritises accelerated economic growth, which will require the attraction and retention of mega-investments in the country. These investments are expected to expand economic activity, create employment opportunities and contribute to addressing the unemployment challenge,” she said.

She said in addition, government continued to create opportunities for locals through various funding initiatives aimed at supporting entrepreneurship and enterprise development. Mdluli listed the Youth Enterprise Revolving Fund, SME Revolving Fund, Informal Traders Revolving Fund, Hamba Ubuye Commercial Maize Fund, Eswatini Agriculture Development Fund and Regional Development Fund, among others.

“These programmes are intended to enable citizens, particularly young people and aspiring entrepreneurs, to establish and grow sustainable businesses and create livelihoods. Government is also increasingly placing emphasis on vocational education and skills development.”

She said the objective was to equip the youth with practical and market-relevant skills that will enable them not only to compete for available employment opportunities, but also to create income-generating opportunities for themselves in areas where formal employment opportunities remain limited.

“Furthermore, government has partnered with international development partners to expand opportunities for young people to gain work experience,” she said.