UN Report: Arab region tops global unemployment rankings

A recent United Nations report released on Friday has highlighted that the Arab region faces the highest unemployment rate compared to any other part of the world.

According to the latest ‘Survey of Economic and Social Developments in the Arab Region’ by the UN Economic and Social Commission for Western Asia (ESCWA), the region has reported a 12 percent unemployment rate.

The economic recovery efforts are expected to lead to a slight decrease next year to 11.7 percent, according to the report.

Lebanon has the highest unemployment rate at about 29.2 percent, according to the report. This is likely to continue to grow, given the protracted economic and political crisis in the Mediterranean country that has seen its currency plummet in value and plunged millions into poverty. 

Poverty is rising as a whole across the region, according to the report, affecting 130 million people across the Arab world. Poverty levels are expected to continue rising over the next year, and could reach 34 percent of the population by 2024. 

There is, however, some good news. The UN expects a growth of around 3.4 percent over the next year, and inflation should fall from 14 percent to 8 and then 4.5 percent in the next two years. 

It is likely that the oil-producing Gulf states will record the highest growth as they continue to benefit from high energy prices exacerbated by Russia’s invasion of Ukraine. 

At the same time, they are expected to suffer from major socioeconomic challenges such as rising energy costs and food shortages, and should work on diversifying their economies away from fossil fuel, said Ahmed Moummi, the lead author of the report. 

“The current situation presents an opportunity for oil-exporting Arab countries to diversify their economies away from the energy sector by accumulating reserves and investing in projects that generate inclusive growth and sustainable development”, Moummi said.