Unemployment across East Asia and the Pacific remains relatively moderate overall, but sharp disparities between smaller island economies and larger regional players are becoming increasingly visible, according to the latest World Bank data.

A visual ranking of unemployment rates highlights French Polynesia and New Caledonia as the hardest-hit labour markets in the region, with jobless rates of 11.7% and 11.2% respectively. These figures stand in stark contrast to the broader regional average of around 3.8%, underscoring uneven economic recovery and structural challenges.

The World Bank’s World Development Indicators show that most East Asian economies continue to maintain comparatively low unemployment levels by global standards, reflecting strong labour absorption in manufacturing, services, and informal sectors.

Smaller Pacific economies dominate the upper end of the unemployment rankings. Guam (5.6%), Fiji (5.3%), and Vanuatu (5.1%) all report rates well above the regional average, pointing to limited job diversification and heavy reliance on tourism and public sector employment.

“These economies are structurally more vulnerable to shocks,” the World Bank notes in its labour market datasets, particularly due to geographic isolation and narrow economic bases.

Among larger economies, China reported an unemployment rate of 4.6%, while Australia stood at 4.1% and Malaysia at 3.8%, broadly in line with or slightly above the regional average. Indonesia and Myanmar recorded lower rates of 3.2% and 3.0%, respectively.

New Zealand, despite being a high-income economy, posted a relatively elevated rate of 5.1%, reflecting tighter labour market conditions amid economic adjustments.

While overall unemployment appears contained, youth unemployment continues to present a more complex challenge. The World Bank estimates youth joblessness in developing East Asia and the Pacific at just over 13% in 2025, significantly higher than the general population rate.

This gap suggests persistent barriers to entry for young workers, including skills mismatches and limited access to formal employment opportunities.

Youth unemployment across the European Union edged higher in February 2026, with stark disparities between member states highlighting persistent structural divides in the bloc’s labour market, according to data from Eurostat and national analyses.

Across the EU, the youth unemployment rate, measuring those under 25 actively seeking work, rose to 15.3% in February, up slightly from 15.2% in January, with nearly 3 million young people unemployed.

While the overall EU unemployment rate remained comparatively stable at 5.9% , the data underscores a continuing imbalance affecting younger workers, whose jobless rate remains more than double that of the general population.

Romania tops youth unemployment rankings

Romania recorded the highest youth unemployment rate among EU countries, reaching approximately 28.2% , according to Eurostat-aligned datasets for early 2026.

The figure reinforces a longer-term trend identified by Romania Insider , which reported that Romania had already become the EU’s worst performer for youth unemployment, with rates above 26% in 2024, surpassing traditionally high-unemployment countries such as Spain and Greece.

Despite relatively low overall unemployment levels in Romania, way below the EU average, the youth segment continues to lag significantly, pointing to deeper structural issues in education , skills matching, and labour market integration.

Analysts cited by Romania Insider have previously linked the trend to high levels of young people not in employment, education or training (NEET), alongside employer reluctance to hire inexperienced workers and gaps between academic training and market needs.

Southern and Nordic economies remain under pressure

Other countries with elevated youth unemployment include Spain (23.8%), Sweden (23.2%), and Finland (23.1%), reflecting ongoing labour market pressures across both southern and parts of northern Europe.

France, Luxembourg, Belgium and Portugal also reported rates between roughly 18% and 21%, signalling that youth employment challenges extend beyond traditionally weaker economies.

At the other end of the spectrum, Germany recorded one of the lowest youth unemployment rates at 7.4% , followed by the Netherlands (around 9%) and Czechia (10.5%), according to Eurostat data.

Central and eastern European countries such as Poland and Slovenia also maintained relatively lower levels, generally close to or just above 11%.

Economists attribute these stronger outcomes to robust vocational training systems, tighter labour markets, and smoother school-to-work transitions.

The February data highlights a persistent structural divide within the EU, where youth unemployment remains uneven despite broadly stable macroeconomic conditions.

Eurostat estimates show that youth unemployment increased modestly month-on-month in early 2026, even as total unemployment declined slightly year-on-year, suggesting that younger workers are more vulnerable to economic shifts and slower to benefit from recovery cycles.

Effective May 1, 2026, China began implementing its duty-free trade access to several African economies, removing tariffs on a wide range of exports. The policy is designed to strengthen trade relations, boost African exports, and deepen Beijing’s economic influence across the continent. Countries such as South Africa , Nigeria, Kenya, Egypt, Ghana and others are already benefiting from improved market access.

A political, not economic, exclusion

However, Eswatini is not part of this framework. The reason is political rather than economic.

China follows a strict “One China” policy, which requires countries to recognise Beijing as the sole legal government of China. This means nations must cut official diplomatic ties with Taiwan to establish relations with Beijing. Most African countries have aligned with this policy over the years, shifting recognition from Taipei to Beijing.

Eswatini’s diplomatic stance

Eswatini has taken a different path. It is the only African nation that continues to maintain formal diplomatic relations with Taiwan. This position has remained consistent despite growing economic ties between China and other African states.

As a result, Eswatini does not benefit from China’s zero-tariff access. Its exports face standard trade conditions when entering the Chinese market, which can make them less competitive compared to goods from other African countries that now enjoy duty-free entry.

Trade policy as foreign policy

The exclusion highlights how diplomatic alignment can influence trade opportunities. China’s tariff policy is not only an economic tool but also part of its broader foreign policy strategy. By linking trade benefits to diplomatic recognition, Beijing reinforces its global stance on Taiwan.

Balancing Taiwan ties and economic interests

For Eswatini, the decision reflects a balance between political ties and economic considerations. Taiwan has maintained strong bilateral relations with the country, providing development support and investment in sectors such as agriculture, health and education.

While other African economies expand their trade with China under the zero-tariff arrangement, Eswatini continues to operate outside this framework due to its diplomatic stance.

Analysts weigh the impact

The exclusion of Eswatini has raised questions, with analysts describing the decision as largely political and carrying limited economic impact.

A Singapore-based expert in China-Africa relations, Amit Jain said the move “may even help Eswatini win even more economic concessions from Taiwan”.

Rising geopolitical tensions

Eswatini remains one of only 12 countries that maintain diplomatic relations with Taiwan, which China regards as a breakaway province that will eventually be “reunited” with the mainland. However, many in Taiwan see the island as an already sovereign state.

Geopolitical tensions came into focus last month when Taiwan’s leader, Lai Ching-te, cancelled a planned visit to Eswatini after Seychelles, Mauritius, and Madagascar denied his aircraft access to their airspace - moves Taipei said were taken under “intense pressure” and economic coercion from China.

China’s broader strategic intent

According to Wen-Ti Sung, a political scientist at the Australian National University’s Taiwan Centre, China’s decision signals a wider strategic intent.

“China is weaponising its ties with African countries, and showing how relations with China comes up with strings attached,” he said.

“China wants to show the world how it treats its friends, versus Taiwan’s friends.”