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NEW YORK. — A high unemployment rate is often the result of a slow economy. As economic activity improves, companies require additional workers, and unemployment falls.

If unemployment remains high for an extended period, it may become structural, resulting in a myriad of problems.

In this article, we will look at the five countries with the highest rate of unemployment.

Unemployment: The Highest Rates

A number of factors including the economy, technological advances, and seasonal fluctuations affect a country’s employment situation. The five countries with the highest unemployment rate are:

South Africa (25,50 percent)

Greece (24,62 percent)

Spain (21,18 percent)

Iraq (16,00 percent)

Egypt (12,80 percent)

1 South Africa

As you can see, South Africa leads the way with an unemployment rate in excess of 25 percent.

Since 2000, South Africa’s lowest unemployment rate was 21,50 percent.

Some of the reasons cited for its elevated rate include the legacy of apartheid, poor education and training, weak labour demand, and a general lack of entrepreneurial interest. According to one source, crime is also a significant issue in the country.

2 Greece

Greece’s economic problems are no secret. Its unemployment rate was relatively tame until late 2008 when it began to rise. Greece’s lowest unemployment rate since 1998 was 7,3 percent.

Youth unemployment in the country is a staggering 49,5 percent, far worse than the general rate. Many believe the problem in Greece is structural and will require microeconomic policies to remedy the situation.

In short, Greece’s government will need to be almost surgical in its approach.

3 Spain

The recent financial crisis hit Spain especially hard. Unemployment was down around 8 percent before spiking to 26,94 percent in early 2013.

Unemployment in Spain also jumped in the mid-1980s and mid-1990s. Over the past 40 years, the rate has been under 10 percent for only a handful of years.

The unemployment rate for Spain’s youth is a whopping 47,7 percent.

One reason for the post-2008 rise in the rate is the glut of houses built between 2000 and 2009.

In one year, 2006, housing starts in Spain were more than that of Germany, Italy, and France combined.

When the real estate bubble burst, the fallout was so severe that unemployment soared. It has yet to return to a normal level.

4 Iraq

Obviously, the war in Iraq did not benefit its economy. Even so, the unemployment rate in Iraq is down to 16 percent from a high of 281 percent in 2003.

5 Egypt

Egypt is the outlier of the group with GDP at 4,5 percent (year/year). Even so, Egypt has also had consistently high unemployment.

Since 1993, its lowest rate was 8,1 percent, which was prior to 2000.

The 2011 revolution in Egypt caused unemployment to rise sharply, where it remains today. — Forbes.