Egypt’s recent announcement of a record-low unemployment rate of 6.4 per cent in the fourth quarter of 2024 offers a welcome respite amidst global economic uncertainties.
This figure, released by the state-run Central Agency for Public Mobilisation and Statistics (CAPMAS), signals a positive trajectory for the nation’s economy, a marked improvement from the 13 per cent unemployment rate recorded in 2013. While celebrating this progress is warranted, a nuanced perspective is crucial, acknowledging both the achievements and the challenges that remain.
CAPMAS data reveals that Egypt’s manpower increased by 2.8 per cent in the fourth quarter of 2024, reaching 33.1 million compared to 32.2 million in the previous quarter. Simultaneously, the number of unemployed individuals decreased from 2.16 million to 2.1 million. This growth in the labour force coupled with a reduction in unemployment underscores the positive economic momentum. The agricultural and fishing sector currently employs the largest share of the workforce, accounting for 18.5 per cent, followed by the wholesale and retail trade sector at 16 per cent. These figures provide valuable insights into the structure of the Egyptian labour market.
What happened?
The decline in unemployment is undoubtedly a testament to the Egyptian government’s economic policies since President Abdel Fattah El Sisi assumed office in 2014. Economists often correlate falling unemployment with improved economic growth, citing increased investment as a key driver.
To effectively combat unemployment, the government along with the civil society has bolstered an entrepreneurial culture and replace a deep-rooted concept of public employment with a free enterprise mindset, especially among the young people.
Moreover, the state has played a key role in tackling unemployment through the implementation of policies and initiatives aimed at promoting job creation. This includes investments in infrastructure development, support for small and medium enterprises, and the encouragement of foreign direct investment.
Egypt’s economic progress, as reflected in the declining unemployment rate, is encouraging. However, continued vigilance and strategic policy adjustments are necessary to consolidate these gains, address remaining challenges, and ensure that the benefits of economic growth are shared broadly across Egyptian society.
