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Egypt’s Unemployment Rate
The country’s lower unemployment rate is due to aggressive reforms that included the liberalization of the Egyptian pound, elimination of most subsidies and the introduction of new taxes such as the value added tax, in 2016.
The reforms led to a rise in foreign currency reserves and in exports, and a drop in imports.
With the drop in imports, local demand driven production had increased and national megaprojects that included the construction of new cities, thousands of kilometres of roads, electricity plants and bridges also supported increased employment.
2023 has seen increasing unemployment rates with the 2nd quarter of 2023 registering a 7% unemployment rate, increasing to 7.1% in the third quarter of 2023.
The Egyptian government anticipates an unemployment rate of 7.6% by mid-2024, however with plans to create 800,000 jobs, across agriculture, construction, retail, and manufacturing sectors, the unemployment rates are expected to improve to 6.9% by mid-2026.
Related Report
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Investing in Egypt’s Startup Ecosystem
Micro, Small and Medium Enterprises contribute over 40% to Egypt’s economy, and account for over 75% of the country’s total employment. Entrepreneurship is critical to Egypt’s future. Today, Egypt consistently ranks as a top 3 tech startup ecosystem in both the MENA and Africa regions, based on funds raised by local startups. In this special report, we speak to the most active investors in Egypt and cover some of the country’s most successful startups to give you an inside scoop on how they are navigating the current VC winter, inflationary pressures and currency devaluation woes.
