Policy Viewpoints

Job Creation in Egypt: A Short and Medium Term Outlook

Publication Number: ECES-PVP29-E/A

April, 2012

Author : Magda Kandil

Type : Policy Viewpoints

Although Egypt has made significant progress towards reviving economic growth, unemployment remains persistently high and a significant increase in job opportunities is still needed to absorb the increasingly growing labor force. Egypt’s labor market is characterized by significant annual increases in the labor force, with the challenge to absorb around 700,000 new entrants to the labor market annually. In addition, unemployment has significantly increased following the January 25 Revolution and subsequent lingering uncertainty that has halted recovery. It is estimated that the economy is in need to create a million jobs a year in order to absorb new entrants to the labor market and reduce unemployment.