Cause Of Unemployment In Egypt

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Egypt is a country located in North Eastern Africa with a small part of it in the Middle –east. Like many other countries, Egypt too has witnessed fluctuations in its economic growth. The Egyptian Labor market is characterized by structural distortions which are caused due to the wide gap between the demand and supply of labor. The main sources for market data of Egypt are Population Census (PC), Labor Force Sample Survey (LFSS) and the Ministry of Planning Statistics. The service sector employs the maximum population, followed by agriculture and then manufacturing. The rate of employment growth in manufacturing is only 0.5% A few Labor market institutions in Egypt are Ministry of Manpower and Migration (MOMM), Employment Information Program,…show more content…
The damage due to unemployment is not just economical, but negative mental and physical impact on the people is seen. The worst affected are the women and the youth. Youth Unemployment is extremely high in Egypt with almost 92% on the total unemployment being of the age group 15-29. Graduates who are searching for jobs for the very first time sometimes have to wait for years before they can be employed. The maximum unemployed among the youth are the ones who are…show more content…
Most of the time, the education and training of the employee are quite un-related to what the job seekers desire. The higher education and vocational training institutes are not efficient enough and are not leading to the production of required workers. In some cases the employees are unable to apply the theoretical knowledge to real life situations and thus don’t prove to be very useful. The country is overpopulated. This means that the labor force has increased at a faster pace than the demand for labor. The labor force has been growing at the rate of 2.8% per year. Privatization in Egypt involved restructuring of employment. In the process, a lot of people lost their jobs. Limited employment opportunities further complicated the situation. Labor laws in Egypt are not very efficient. No protection is provided to employees. The concept of minimum wages was non-existent in Egypt a few years back. Many frustrated job seekers, especially women exit the labor market by the time they reach their mid-30s. Unlike other countries labor unions, civil society organizations and business associations are not strong enough and this leads to the companies taking their employees for

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