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Unemployment rate declines to 12.4% during Q4 2016 - Daily News Egypt

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Unemployment rate declines to 12.4% during Q4 2016

The rate will witness further decline during 2017/18: EFG Hermes expert


The rate of unemployment has decreased to 12.4% during the fourth quarter (Q4) of 2016 (October-December) from 12.6% during the third quarter (Q3) of the same year (July-September), according to a press statement issued on Wednesday by Central Agency for Public Mobilization and Statistics (CAPMAS).

The statement said that the fourth quarter is when new graduates join the labour force, explaining that some of them might join the military or prefer to apply for graduate degrees, such as Master’s.

In Q4, the labour force recorded 29.07m persons, an increase of approximately 250,000 persons compared to Q3, or 0.9%.

Moreover, the number of unemployed persons recorded 3.591m during Q4, representing a ratio of 12.4% of total labour force, which reduced by almost 49,000 persons compared to the Q3.

The Q4 rate showed that 8.5% of males and 25.3% of females were unemployed.

Mohammad Abu Basha, an economist at EFG-Hermes, said that it is difficult to know the reason behind unemployment decreases between quarters.

However, he added that the rate is going to decline in the future, adding that there are no reasons for unemployment to increase.

Abu Basha believes that the government solved the electricity crisis and implemented the Egyptian pound flotation, which means that in the short run the country will witness the attraction of new foreign investments, which would create more job opportunities.

“The rebounding of the tourism sector would enhance job creation and will attract more investments,” he stated.

The expert explained that the current year will witness a modest decline in the rate of unemployment; by 2018 the rate of decline will increase because of the implementation of economic reforms.

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