Back to the complete issue
Wednesday, 16 February 2022

Unemployment falls slightly to 7.4%

Unemployment falls slightly in 4Q2021: Egypt's unemployment declined fractionally to 7.4% in 4Q2021 from 7.5% the previous quarter, according to the latest data from statistics agency CAPMAS (pdf). The rate is now up slightly from 7.2% in 4Q2020.

The jobless rate has remained more or less flat over the past year, with only mild fluctuations since spiking to a near-two-year high of 9.6% in 2Q2020 on the back of the lockdown and economic disruption that accompanied the pandemic.

This only includes people who are looking for work, though: The labor force participation rate — which counts everyone aged 15-64 either in work or actively looking for work — remained low in 4Q, edging up 0.1 percentage points to 43.8% from the previous quarter.

Youth unemployment increased: The number of 15-29 year-olds out of work accounted for 64.3% of all jobless people, up from last quarter’s 58.4%.

And unemployment among women remains a dark spot, rising to 17.8% from 15.3% in 3Q2021. In contrast, unemployment among men fell to 5.2% from 5.9% last quarter.

Job creation has slowed in the private sector: Employment has been falling in the private sector for three consecutive months, according to the latest PMI, with lower demand bringing stable backlogs and reduced workloads.

IN OTHER ECONOMY NEWS- State-owned enterprises will raise the minimum wage to EGP 2.7k for their workers as of 1 July, in line with the incoming wage hike for public sector workers, the cabinet announced in a statement. This is the first time that the public sector minimum wage has been applied to public enterprises, the statement read.

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.