Unemployment In Egypt Essay
What are the causes of unemployment in Egypt, and how does unemployment affect the country?
Introduction
Unemployment is an economic indicator marked by the fact that individuals actively seeking for jobs remain unhired or rather connotes to the number or proportion of people in an economic sector who are willing and able to engage in one function or the other to get a reward for their services, but are not able to get a job.
Egypt is an emerging economy that was rapidly growing in the years before the crisis in 2011(Egypt Revolution).
It’s diversified economic activities, geographic location and educated young and broad labor force makes it a high potential economy. While many developed economies around the globe struggle with increasing
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Therefore, this makes unemployment among the young graduates in Egypt high.
Causes of unemployment in Egypt
High birth rate in Egypt One of the main problems facing the issue of unemployment in Egypt is high birthrate, particularly during the 1970’s. Egypt is estimated to have 79 million people and according to UNICEF, 31.235 million Egyptians under the age of 18 make up 38 percent of the population (Khalifa, 1991).
Egypt 's population growth rate has reduced from a yearly rate of 2.4 percent in the period from 1970 to 1990 to 1.9 percent but from 1990 till date it has been increasing. In 2008, the fertility rate was 2.86 births per woman, well down from 6.23 and 4.56 births per woman in 1967 and 1990 respectively. Remarkably enough, various types of contraceptive method was used by 60 percent of women (Watch, 2010).
This rising birthrate is creating (and will continue to create) rising stress in the country 's employment growth.
Lack of good
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Altogether, those governments are no longer collecting the same amount of income tax from the people as before therefore, forcing the government to borrow money (which defers the costs and impacts of unemployment into the future) or cut back on other spending.
Continuous borrowing to finance the growing deficit has gradually exposed the banking sector to government debt which crowded out private investment because they were making a loss, and resulted in sluggish economic growth that at an average of 2 percent a year which was barely above the population growth of 1.7 percent.
As things stand at present, the country’s macroeconomic picture is not focused on the possible way out of their debt issue, and also lack urgent reform measures. Egypt’s fiscal health could get much worse, as predicted by the IMF and by the country’s own Ministry of Finance ( Dimian,
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