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IT’S HARD TO get by when you don’t have a job and the cost of living keeps rising.
This is the maxim behind economist Arthur Okun’s Misery Index, which adds together a country’s unemployment and inflation rates. The higher the number, the more ‘miserable’ the country is.
There has been some criticism of the index. Extensive studies have shown that unemployment influences happiness (or, rather, unhappiness) significantly more than inflation.
Still, few would argue that both unemployment and inflation are bad when they are very high.
In light of that, Business Insider compiled a list of the 18 most miserable countries based on 2014 data available at the CIA World Factbook. Some countries struggle with both high unemployment and inflation, while others have one rate asymmetrically higher than the other.
Some countries are absent from the list because data was either unavailable or outdated.
Misery-index score: 20.1
CPI inflation: 4.9%
Unemployment: 15.2%
Tunisia was once called a “success story in Africa and the Middle East, but today it faces an array of challenges following the 2011 revolution,” according to the CIA Factbook. The government’s biggest challenges include reassuring businesses and investors and bringing budget and current account deficits under control.
Source: CIA Factbook
Misery-index score: 20.7%
CPI inflation: 7.1%
Unemployment: 13.6%
Jamaica’s economy relies heavily on the services sector, including tourism. Unfortunately, the country suffers from high crime and corruption and high unemployment — which leads to more crime.
The government is battling a two-headed hydra: On the one hand, it needs to achieve fiscal discipline to maintain debt payments, but on the other hand it wants to confront the serious crime problem.
Source: CIA Factbook
Misery-index score: 20.8%
CPI inflation: -0.2%
Unemployment: 21%
Croatia is one of the better-off former Yugoslav republics, but the country was hammered by sudden slowdown in 2008 with the financial crisis and never fully recovered. Major long-term problems include uneven regional development, a challenging investment climate, and a “stubbornly” high unemployment rate.
Source: CIA Factbook
Misery-index score: 20.9%
CPI inflation: 12.1%
Unemployment: 8.8%
Ukraine’s economy was hit hard during the financial crisis, finally rebounding in 2010, and then imploding after Russia annexed Crimea. (GDP fell by 6.8% in 2014.)
Political corruption and inefficient reforms continue to hold back the country.
Source: CIA Factbook
Misery-index score: 21.7%
CPI inflation: 12.9%
Unemployment: 8.8%
“Mongolia’s economy faces near-term economic risks from the government’s loose fiscal and monetary policies, which are contributing to high inflation, and from uncertainties in foreign demand for Mongolian exports,” according to the CIA Factbook.
Source: CIA Factbook
Misery-index score: 23.5%
CPI inflation: 10.1%
Unemployment: 13.4%
Egypt’s economy has slowed since 2011 following political and security uncertainty. The country’s tourism and manufacturing sectors were particularly bruised. Additionally, limited foreign-exchange earnings and weak growth have made public finances unsustainable.
Recently, a huge gas field was discovered off Egypt’s coast.
Source: CIA Factbook
Misery-index score: 24.1
CPI inflation: -0.2%
Unemployment: 24.3%
Spain looked deflated during the financial crisis, but thing are looking up. The country saw its first full year of positive economic growth in 2014, its unemployment rate is falling at the fastest rate ever recorded, its borrowing costs are “dramatically” lower than their peak in 2012, and inflation is falling.
Source: CIA Factbook
Misery-index score: 25.5
CPI inflation: -1.3%
Unemployment: 26.8%
Greece was the big story out of Europe this summer as the Syriza government battled against its European creditors over a bailout deal.
Unfortunately, on top of Greece’s numerous economic problems, “uncertainty regarding Greece’s future in the eurozone has dampened investor confidence,” according to the CIA Factbook.
Source: CIA Factbook
Misery-index score: 26.1
CPI inflation: 15.8%
Unemployment: 10.3%
Iran is the wild card on the world stage right now. The potential sanctions relief could lead to an economic window of opportunity, especially considering that the country has a young, relatively well-educated population and a large market size. Plus, Iranian oil stands to return to the market.
Source: CIA Factbook, World Economic Forum
Misery-index score: 27.8
CPI inflation: 1.7%
Unemployment: 26.1%
Serbia faces numerous long-term economic challenges, including the need for job creation, high government expenditures (on salaries, pensions, and healthcare), rising public and private foreign debt, and attracting foreign direct investment.
The country also struggles with high levels of corruption and an aging population.
Source: CIA Factbook
Misery-index score: 27.9
CPI inflation: -0.1%
Unemployment: 28%
Macedonia has taken huge steps forward since gaining independence, but the country has failed to attract the same foreign investment as its Balkan neighbors. Additionally, corruption and weak rule are long-term problems suffocating the economy.
Source: CIA Factbook
Misery-index score: 31.1
CPI inflation: 6.1%
Unemployment: 25%
South Africa’s is one of the biggest names in emerging markets, making up the final letter in the BRICS acronym. But economic growth has decelerated in recent years, and unemployment, poverty and inequality remain major long-term problems.
Source: CIA Factbook
Misery-index score: 32
CPI inflation: 3.9%
Unemployment: 28.1%
Lesotho’s government is the country’s largest employer, but the economy also relies on textile manufacturing, agriculture and remittances. Notably, diamond mining has grown in recent years, which analysts believe could contribute as much as 8.5% to GDP by the end of 2015.
Source: CIA Factbook
Misery-index score: 35.2
CPI inflation: 8.2%
Unemployment: 27%
“Yemen is a low-income country that is highly dependent on declining oil resources for revenue,” according to the CIA Factbook.
Further, the country struggles with long-term problems, including declining water resources, high unemployment and “severe” food scarcity. And, on top of all of that, the country is in the midst of a civil war.
Source: CIA Factbook
Misery-index score: 44.1
CPI inflation: 36.4%
Unemployment: 7.7%
Argentina’s economy struggles with an unsustainable and growing fiscal deficit, a stagnating economy, extremely high inflation and increased drug-related violence. And election season is coming.
Source: CIA Factbook, The Washington Post
Misery-index score: 62.9
CPI inflation: 2.9%
Unemployment: 60%
Djibouti relies heavily on foreign assistance to help support its balance of payments, and struggles with a 60% unemployment rate.
Inflation is “not a concern”, but only because the Djiboutian franc is tied to the US dollar. Unfortunately, the artificially high value of the Djiboutian franc hurts the country’s balance of payments.
Source: CIA Factbook
Misery-index score: 67.8
CPI inflation: 34.8%
Unemployment: 33%
Syria’s economy continues to decay. It got significantly worse in 2014 following international sanctions, widespread infrastructure damage, and decreased consumption and production. And on top of that, thousands of Syrian refugees are fleeing the country every day.
Source: CIA Factbook
Misery-index score: 70
CPI inflation: 62.2%
Unemployment: 7.8%
“Venezuela seems to be going from worse to worse,” RBC Capital Markets’ Helima Croft previously wrote.
The plunging oil prices in late 2014, combined with a recession, crushed the Venezuelan economy. Inflation is out of control to the point that an iPhone 6 costs nearly $47,700 (€42,000) right now. The country is looking for allies outside of OPEC in hopes of stabilising its oil prices.
Source: CIA Factbook, Bloomberg News
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This list is laughable, no Libya, Iraq, Afghanistan, Pakistan, Eritrea, South Sudan, Rwanda, Congo, Belize etc. These countries are either destroyed by war or have the highest murder rates in the world yet this list claims Croatia is a more miserable country. How do they come up with this crap!
Maybe in all those other countries they like killing each other and would be miserable if they couldn’t.
It’s a very crude measure – simply adding unemployment to inflation. It takes no account of the people, working hours, weather. leisure activities cost of living for example.
I’d rather go Spain or Croatia than North Korea for example despite the fact that according to this metric, North Korea has less misery
Read the article fully – “Some countries are absent from the list because data was either unavailable or outdated” It also tells you exactly what this misery index measures – unemployment and inflation. So it isn’t really a surprise that it doesn’t include murder rates, war etc. So unemployment + inflation is exactly “how they come up with this crap”
Sarah I don’t know about you but I think people who loses love ones to violence would definitely be more miserable than someone who loses a job. This study is a load of rubbish, using economic factors alone to try and judge a nations misery index, yet is missing most countries that are hellholes at the moment.
I would have though suicide is a very real indicator of misery and yet South Korea has the highest rate of suicide in the world but just because it has low unemployment is missing from this list. Greece also has the lowest rate of suicide in the OECD and having been there recently, while struggling, the people didn’t seem miserable.
You know what else most of these countries have in common ? ya, i dont even need to say it…
I reckon this could make the Journal’s all time top 18 most pointless articles. Stiff competition though.
C I A factbook ,ha ha ha ha . same factbook that lead to millions of Iraqis.
And Ireland?
It was a bit of shite article to begin with, let’s put it up again and see if it’s less shite this time.
Gônôprôjatôntri Bangladesh not on the list, many improvements
Jeez patjoejoe……give it a rest.
why are you copying a rapist’s name and profile pic ? how sick is that ?
I’m thinking of taking 10 iPhones a week to sell in Venezuela
Where’s Iraq, Somalia and Afghanistan, thought they would be in the top 20
They don’t even qualify as countries anymore.More failed states than anything at this stage.
I’ve visited Argentina, Mongolia and Iran and found them great places, not to mind some of the European canditates and I can safely say this list is full of sheyete.
Central and West Africa is full of basket cases, wheres CAR, Eritrea or Guinea Bissau?
Bolivia, Peru and Ecuador are several divisions below Argentina in terms of everything except poverty.
Spain is modern developed coutry with living standards light years ahead of everywhere in central America yet nowhere there makes the list, have they never heard of the Stans?
The correct title should be the 18 worst countrys if you ignore a 100 or so other bad ones.
Great places as an expat with cash in your a$$ pocket maybe Matty
Iran for example is very modren and surprisingly cheap, just read what lonely planet says and I completely agree.
“Redefining Hospitality
If you like people, you’ll like Iran. The Iranians, a nation made up of numerous ethnic groups and influenced over thousands of years by Greek, Arab, Turkic and Mongol occupiers, are endlessly welcoming. For those who have grown up on an endless diet of images depicting Iran as a dark, dangerous place full of fundamentalist fanatics, discovering the real Iran is the most wonderful surprise. Before long you’re asking yourself: how can somewhere supposedly so bad be so good?
Beyond the stereotypes is a country desperate to been seen for what it is, rather than what it is depicted to be. Sure, not every Iranian you meet is going to invite you around to dinner. But if you’re open to the idea, you probably will be, and through it experience the ancient and sophisticated Iranian culture first-hand. It’s these experiences that will live longest in the memory.”
http://www.lonelyplanet.com/iran
Does that sound like a miserable place?
Ah come on…..it has to be Ireland surely??? The Army of moaners on here would have you believe it’s a corrupt banana republic. How can Ireland not be in the list??
Because it’s a great country to do business in.
Yes, I was surprised Ireland wasn’t on the list – but not for your reasons, Robert!
If it’s so miserable Mary, why don’t you leave instead of moaning vaguely on the internet?
Robert just like Ireland,
Le tigre no one SHOULD Have to leave Ireland.
No-one is forcing her to. But she thinks it’s one of the 18 worst places on earth so it stands to reason she would WANT to leave. I’m sure Congo or Somalia will be fun
Uncle Marty, that is what all the prostitutes and bankers say lol.
Alternatively, the most healthy and equal societies tend to be the happiest. I really thought the synopsis of Argentina could be just as applicable to Ireland
Argentina had 8% annual growth a few years after their default in 2008, the crash of 2008 sent them plunging like Ireland.
Yes exactly the same apart from the stagnating economy, increased drug-related violence and extremely high inflation
what 2008 default ?
Really surprised with Spain’s rating with all the sun, good diet and great night life they have?
CIA fact book !!!! lol.
Don’t laugh. it’s been going for a long time and is a good source to get basic info on countries like GDP, demographic make up etc
“Basic” being the operative word.
GDP figures Robert are massaged as they make sure not to include inflation in with GDP as that would tarnish them.
What is great for inflation but printing money like in Q.E.
Ireland doesn’t want to join this list – one area I.e. Homelessness crises with set the dominos in place on other sectors. Tunnel vision for sure with the Government.
No 19. JOBSTOWN.
Ironically named :)
Argentina’s performance against New Zealand should lift them a few places.
This article is more propaganda by the big media, everyone knows Venezuela is a utopia.
Perhaps if America were to pull its terrorists out of Syria its unemployment rate would fall considerably from 33%
I am sure a lot of that also went on in the North, Monaghan and Dublin in the early 70′s
Where do you think the American’s learned it from?
where is north Korea. this list is shit
Just above South Korea and below China.
Didn’t realise Congo was such a happy place
Compared to what it was it’s not doing too badly. Of course anything would seem great after that war.
Bahraine was busy torturing doctors and nurses who helped those who were injured looking for democracy, why is that?
Lets get a bit of perspective here. I know we think things are bad in Spain but there is no way that they or any other Western European country should be on this so called misery list. It’s a democratic country where average wages are still over 20 thousand Euro per year. Their unemployed citizens have the safety net of social security. There’s no war or natural disasters and they have a nice warm climate all year round. I’d say at least 90% percent of people living in Africa, South America or South East Asia have a tougher existence than even the poorest Spaniards.
About 20-30% of the population of Lesotho is employed in South Africa and its currency is pegged to the Rand, so the Lesotho figure is off. Clearly the index doesn’t take account of important structural factors.
Plus, the people never struck me as ‘miserable’, though a lot of people definitely have it hard, especially at winter. But harder than other countries. You can’t really compare these things.
This is a politically based story.. Syria should be first, then Yemen and then South Africa !!
Why Syria, those escaping Syria are doing it because of ISIS and not due because of Assad?
CIA factbook and Bloomberg news two sources that know more about making misery than measuring it. Eat a bag of shite.
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