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Job creation in Egypt surges as unemployment rate hovers around 7.4%

The vast majority of Egyptians work in agriculture or the informal economy, but others work in manufacturing, social services, the government sector, tourism and other industries. Photo: REUTERS/Mohamed Abd El Ghany.

The vast majority of Egyptians work in agriculture or the informal economy, but others work in manufacturing, social services, the government sector, tourism and other industries. Photo: REUTERS/Mohamed Abd El Ghany.

Published Aug 3, 2022

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In Egypt, unemployment was estimated at 7.4% in June 2021, according to the African Development Bank Group - AfDB.

The vast majority of Egyptians work in agriculture or the informal economy, but others work in manufacturing, social services, the government sector, tourism and other industries.

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Minimum Wages in Egypt increased to 2400 EGP/Month in 2022 from 2000 EGP/Month in 2021, according to the Central Agency for Public Mobilization and Statistics (CAPMAS)

Egypt’s Planning Minister Hala Al-Saeed says it looks to boost the contribution of manufacturing, agriculture, telecommunications and information technology sectors to as much as 35 percent of GDP by 2024.

The country’s banking system remained liquid, profitable, and well capitalised, with the capital-adequacy ratio estimated at 24.7% in September 2021, according to the AfDB.

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Unemployment also declined to 7.2% by Q2- FY2020/21 (after spiking at 9.6%, six months earlier), with the gradual resumption of economic activity and the continuation of mega projects throughout the Covid-19 pandemic, said the World Bank in 2021.

Key exposed sectors, such as tourism, manufacturing, the Suez Canal and oil and gas extractives, continue to be impacted, said the World Bank, essentially causing a slump in demand and disruptions to domestic and global supply chains and trade.

According to analysis by Eleftherios Giovanis, a Senior Lecturer in Economics at Manchester Metropolitan University, their analysis suggests that small and medium enterprises (SMEs) seem to be the engine of job creation growth in Egypt, an article published by the website Alternative Policy Solutions.

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“We observe that the share of the employment in SMEs, which employ less than 100 workers, is almost 75% while the remaining 25% of the employment share consists of large firms (with 100 employees and over).”

In general, medium-sized firms have higher net job creation rates (0.14%) than the large firms (0.106%) in Egypt.

Egypt is projected to account for 17% of Africa’s combined output expansion in 2022, up from 16% in 2021.

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The two largest economies, Nigeria and South Africa, are expected to account for 17% and 15%, respectively, of the aggregate output of the region, according to a recent report by the African Export-Import Bank (Afreximbank).

Gasoline Prices in Egypt remained unchanged at 0.47 USD/Litre in June from 0.47 USD/Litre in May 2022.

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