Positioning of Egypt’s Labor Market: Dynamics, Sectoral Decomposition, Key Constraints & Future Trends

Author(s): Salma Bahaa, Senior Economist, ECES
Publication Number: ECES-WP225-E

Over the past decade, the Egyptian economy has undergone significant negative structural shifts, skewing job creation towards lower productivity sectors. COVID[1]19 has further revealed Egypt’s labor market bottlenecks, vulnerability, and segmentation. This paper presents a holistic diagnosis of the labor market dynamics in Egypt, as well as at the sectoral level, in the crucial decade between 2010 and 2020.

Among its key findings, the paper stresses institutional weaknesses and skill mismatch out of top 10 key constraints, as deep running roots for the subsequent challenges facing the Egyptian labor market.