Kathmandu— Although the national unemployment rate stood at 4.1 percent in July 2026, with 6.9 million officially counted as unemployed, there were an additional 5.9 million people who wanted to work but did not meet technical requirements for being classified as unemployed and another 4.8 million working part-time despite wanting full-time employment. This totals 17.6 million individuals seeking better job opportunities or employment, highlighting the need for government-funded job creation programs.

Employment Rate Disparities

The employment-to-population ratio, or employment rate, provides a clearer picture of joblessness than the unemployment rate. In July 2026, while the national average for prime-age (25 to 54 years old) workers was 82.2 percent employed, significant disparities exist at state and local levels. West Virginia had the lowest prime-age employment rate at 77.2 percent, compared to South Dakota’s high of 87.7 percent.

Racial Disparities in Unemployment

Unemployment rates for racial and ethnic minority groups are significantly higher than national averages. In the second quarter of 2026, Hispanic unemployment rates ranged from 5.9 to 8.1 percent across various states, while Black unemployment rates were even higher, reaching up to 11.4 percent in Michigan. These disparities highlight the need for targeted job creation efforts.

Federal Job Guarantee Support

A majority of Republican, independent, and Democratic voters support a federal job guarantee, which would involve direct job creation by the government as well as subsidies and incentives to boost state-level employment. This approach is seen as more beneficial than increasing military spending.

Key Sectors for Investment

Several sectors are in critical need of workforce development and federal investment, including construction, care work, and climate-related jobs. The construction industry faces a worker shortage that will worsen with retirements, while the care economy has 1.8 million vacancies due to rising demand and high turnover rates. Climate change mitigation efforts also require significant workforce engagement.

(With inputs from CounterPunch)

Originally published on abcnews.com.np.