Comprehensive Analysis of the Egypt Labor Market: Trends and Policies

This report provides a detailed analysis of the labor market in Egypt. It begins with an introduction and then discusses the unemployment rate, including a trend analysis over the past ten years, highlighting cyclical and structural factors influencing the rate. The report then examines the labor force participation rate in Egypt, noting its trends and contributing socio-economic factors. A comparison is made between Egypt and Canada's labor force participation rates, including graphical representations and a trend analysis. The report concludes by summarizing the key findings and comparing the approaches used by both countries to improve labor force participation. The analysis uses data from Tradingeconomics.com and incorporates references to support the trend analysis, including articles from various reputable sources.

Running head: LABOR MARKET ANALYSIS OF EGYPT
Labor Market Analysis of Egypt
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Table of Contents
Introduction......................................................................................................................................2
Unemployment rate.........................................................................................................................2
Labor force participation rate in Egypt............................................................................................3
Comparison of labor force participation rate between Egypt and Canada......................................3
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................5
Article Reference.............................................................................................................................6

2LABOR MARKET ANALYSIS OF EGYPT
Introduction
The report discusses the unemployment rate and labor force participation rate in the
Egypt. The discussion will be based on the trend analysis of the above to indicators. In addition
to that, the report discusses the labor force participation rate of the country in comparison with
Canada.
Unemployment rate
Figure 1: Unemployment rate in Egypt
Source: (Tradingeconomics.com, 2020)
The unemployment rate in Egypt has always been high even during the best time of the
country. It is evident from figure 1, that the lowest unemployment rate in Egypt was around
7.5% in 2019, the lowest in last ten years. There has been no fixed unemployment trend in Egypt
in the last ten years (Bertoni & Ricchiuti, 2017). From 2010 to 2014 the unemployment rate in
Egypt has increased in a drastic way as the in a period of 4 years the unemployment rate

3LABOR MARKET ANALYSIS OF EGYPT
increased from 8.5% to 13.5%, a rise of 5%. After 2014, the unemployment started to fall in
Egypt. The fall was slow the middle of 2017 and after that unemployment fall with greater pace.
Most of the unemployment occurred in the country is due to cyclical reasons since the economic
condition of the country has not been good. However, due to recent development the
unemployment has declined. This decline in unemployment rate is due to structural changes.
Labor force participation rate in Egypt
Figure 2: Labor force participation rate in Egypt
Source: (Ceicdata.com, 2020)
Egypt is a developing country and the socio-economic condition of the country is not
well. It is the primary reason due to which the labor force participation is not low in the country.
In addition to that, participation of women in the labor force in the country is low and it adds to
the low labor force participation the in the country. From figure 2, it can be said that there is
gradual fall in the labor force participation rate in the country. Therefore, the trend of labor force
participation in the country is falling in Egypt.

4LABOR MARKET ANALYSIS OF EGYPT
Comparison of labor force participation rate between Egypt and Canada
Canada is developed country and thus the economic condition of the country is much
better in comparison to Egypt. It is the reason due to which the labor participation rate in the
country is better in Canada. However, it has been observed that the labor participation rate in
Canada is very much fluctuating. Both the countries used the policy of raising wage rate in order
to
raise labor participation. On the other hand, Canada has implemented polices to encourage
women participation in labor market and Egypt uses skill development and infrastructural
improvement to increase labor participation.
Figure 3: Labor force participation rate in Canada
Source: (Ceicdata.com, 2020)
Conclusion
The above discussion leads to the conclusion that the labor market in Egypt is not in a
good condition as the labor force participation is declining. Alternatively, the fall in
unemployment rate is a good sign. Both Egypt and Canada are trying to improve their labor force
participation by implementing suitable policies.

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Reference
Bertoni, E., & Ricchiuti, G. (2017). A Multilevel Analysis of Unemployment in
Egypt. LABOUR, 31(4), 494-514.
Ceicdata.com. (2020). Canada Labour Force Participation Rate [1976 - 2020] [Data & Charts].
Retrieved 8 March 2020, from https://www.ceicdata.com/en/indicator/canada/labour-
force-participation-rate
Ceicdata.com. (2020).Egypt Labour Force Participation Rate [2009 - 2020] [Data & Charts].
Retrieved 8 March 2020, from https://www.ceicdata.com/en/indicator/egypt/labour-force-
participation-rate
Tradingeconomics.com. (2020). Egypt Unemployment Rate | 1993-2019 Data | 2020-2022
Forecast | Calendar | Historical. Retrieved 8 March 2020, from
https://tradingeconomics.com/egypt/unemployment-rate.

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Article Reference
https://thearabweekly.com/unemployment-down-egypt-maintaining-trend-challenge
https://erf.org.eg/wp-content/uploads/2016/05/999.pdf
https://www.theglobeandmail.com/business/commentary/article-labour-participation-and-job-
creation-rates-tell-untold-tale-of/
https://www.cesr.org/labor-rights-and-workplace-equality-egypt-new-measure-finds-progress-
lacking