The unemployment issue in Egypt is mainly about the educated youth seeking its first job. The mismatch of skills between job requirements and the qualification of job seekers, the high reservation wage of new school leavers, and limited labor mobility are at the root of the problem.
Why is unemployment high in Egypt?
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A big part of the youth unemployment problem in Egypt is driven by population growth. There are significant demographic pressures as the Egyptian labor market is unable to cope with the number of new job seekers.
Does Egypt have high unemployment?
In 2019, the unemployment rate in Egypt was approximately 10.8%, down from 11.6% in 2018. On average, the unemployment rate was 10.91% from 1993 to 2018, reaching a maximum of 13.4% in the third quarter of 2013 and a minimum of 8.10% in the second quarter of 1999.
What causes youth unemployment in Egypt?
There are many reasons for the high youth unemployment rate in Egypt. First and foremost, the level of economic growth in the country did not match the demographic pressures of having an increasing number of new entrants to the labor market from the youth every year.
What is the unemployment rate in Egypt?
In 2020, the unemployment rate in Egypt was at approximately 10.45 percent.
What causes of unemployment?
The causes of unemployment in high-income countries of the world can be categorized in two ways: either cyclical unemployment caused by the economy being in a recession, or the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses.
What are the major challenges facing Egyptian youth?
However, young people in Egypt are facing a number of serious issues that has a direct impact on the Egyptian society like unemployment, migration (the lack of employment opportunities and the poor living conditions are one of the biggest reasons of the increase of migration aspirations among youth.