Unemployment rate of G7 countries 2000-2022, by country

As of 2022, Italy had the highest unemployment rate of the G7 countries, reaching eight percent. Especially in Canada and the United States, the unemployment rate rose sharply in 2020 due to the COVID-19 outbreak. Japan had the lowest unemployment rate at just 2.6 percent.

Slowed growth of the Japanese economy and society

While Japan had the lowest unemployment rate, it also experienced a two percent wage decrease. Moreover, wages in Japan are known to be stagnant, with many workers going years without experiencing any wage growth in their roles. One contributing factor to its low unemployment rate is its shrinking population. As the population continues to decrease, there is less competition for work. However, this introduces other problems for Japanese society, as it also has a rapidly aging population that requires long-term care.

Unemployment in Italy: The divide between Northern and Southern Italy

Not only does Italy have the highest unemployment rate out of the G7, but it has the second-highest unemployment rate of Europe's largest economies. Furthermore, Italy has significant levels of youth unemployment, with the majority of youth unemployment lying within southern regions of the country. The economic divide between Northern and Southern Italy is significant, and can be attributed to differences in industralization and economic diversification. The prominence of this divide has had wider impacts on Italian politics and society.