Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt's industrial policies discourage employment: World Bank report
Published in Daily News Egypt on 20 - 09 - 2014

Egypt's labour laws and industrial policies discourage employment by raising the costs of labour and artificially reducing the price of non-labor inputs and directly encouraging the production of non labour-intensive products by tariffs and other policies, a recent World Bank study stated.
The low-quality, insecure and unstable jobs can be reversed through adopting reforms aimed at reviving the private sector, promoting formal employment and engaging vulnerable population, the World Bank said in a press statement on 18 September.
World Bank's country director for Egypt, Yemen and Djibouti Hartwig Schafer said that the private sector has the potential to provide Egyptian youth with the needed job opportunities, stressing that the international organisation is committed to supporting Egyptians "in improving their livelihood to participate in prosperity and growth".
The statement added that jobs in Egypt have become less likely offer social insurance or a written contract over the past 15 years, creating higher informal employment status despite the high level of educational attainment of young people.
"The rate of informal employment in Egypt is high by world and regional standards, and the Egyptian labour market has been deformalising even as the rest of the world trends towards more formal employment arrangements," the report read.
According to International Labor Organization (ILO) figures, 56% of male non-agricultural employment in Egypt is informal, much higher than Turkey's 30% and nearly as high as 60% in Palestine, the report said.
The report also stressed that it is difficult to understand the barriers to job creation in Egypt without considering the effect of public policies on private incentives to invest and enter new markets.
Creating job opportunities has been the centre of the policy debate since the January 2011 Revolution, as the labour market was negatively affected by the political and economic crises, the report explained.
A Gallup survey stated that 80% of Egyptians believe that the country is currently worse off than it was before 2011, with 50% believing that it will recover in the next five years, the report said, attributing the pessimism to the negative view of the labour market.
Meanwhile, 70% of Egyptians believe that employment opportunities in the public and private sectors have declined, and more than 50% believe the situation will take five years or more to improve, according to the same survey.
The World Bank argues that the job crisis in Egypt, which was present before the Arab Spring, will persist unless a "dramatic" change in public policies takes place.
"In Egypt, we find that the relationship between growth and employment manifests itself as changes in job quality rather than job quantity," the report said.
The international organisation highlighted the governmental procedures in addressing the unemployment crisis and highlighted that the "market-oriented" reforms, which was by former President Hosni Mubarak's cabinet in 2004, were biased against labour-intensive projects and did not achieve substantial improvement in the quality and availability of employment, leading to frustration among educated labour force and culminating the revolution, World Bank said.
Egypt's youth are facing major challenges, as the unemployment rate registered 13.3% during the second quarter (Q2) of 2014. This figure compares to 13.4% during Q1, the Central Agency of Public Mobilization and Statistics (CAPMAS) stated in August. Unemployment recorded 9% during the same quarter in 2010, the statistics agency added.
CAPMAS also reported in August that approximately 27.8% of Egyptian youth live in poverty, while 24.1% live near the poverty line. The figure is a minimal increase compared to last year, where poverty and near-poverty among youth registered 51.3%.


Clic here to read the story from its source.