A new report released by Egypt's Statistics Body Central Agency for Public Mobilization and Statistics (CAPMAS) on Monday revealed that the rate of unemployment in Egypt has dropped to 11.8 percent in 2017, in comparison t0 12.5 percent the year before.
However, although it was up against the previous month, the January unemployment rate was a clear improvement on the 13% seen in January 2017, which was recorded as the highest level since February 2010.
The youth unemployment rate-the 15-24 age group-was 19.9 percent, down 4.6 percentage points year-on-year in January.
The number of unemployed rose to 3.41mn in January from 3.29mn in December. The participation rate was 51.5% in January 2017.
More than 55 percent of total employment was in the services sector, 19.9 percent in industry, 17.7 percent in agriculture, and 7 percent in construction.
The report also highlighted the existence of 32.5 percent of workers who do not have any social welfare; the same proportion registered a year before.
Minister of Planning's Advisor Ahmed Kamali stated earlier that Egypt needs to provide 700,000 job opportunities to limit the increase of the unemployment rate, and this number should be exceeded to reduce the unemployment rate.
Egypt has been facing an economic recession over the past few years due to political turmoil and relevant security issues, which led to declining tourism and foreign investments amid growing budget deficit, inflation and foreign and domestic debts.
Lall added that the private sector alone can provide these opportunities through the establishment of small and medium enterprises, and the expansion of existing companies where it is hard for the public sector to step in. The rate in this age segment reached 20 percent among males whilst it reached 36.5 percent among females.