Back to the complete issue
Tuesday, 16 February 2021

Drop in unemployment driven by job creation, not reduced labor force –EFG Hermes

MORE CONTEXT on this morning’s unemployment figures: EFG Hermes’ Mohamed Abu Basha took a deeper dive in a client note today, writing that “while the headline number is somewhat underwhelming, it carried an important development: the number of employed people has risen to exceed pre-COVID-19 levels. … The number of employed jumped by a sharp 1.7 mn people, taking the overall number of employed people to 27.8mn. In the previous quarters, the drop in employment was driven by a reduced labour force.” Abu Basha thinks it is still a bit surprising that “employment recovered that strongly while the important tourism sector continues to suffer from depressed activity as a result of the pandemic.”

What’s driving job creation? Trade and agriculture, which together created more than 1 mn jobs, he says, followed by construction (317k jobs) and healthcare (124k).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.