Chapter01 Solving The Unemployment in Egypt
Chapter01 Solving The Unemployment in Egypt
Chapter01 Solving The Unemployment in Egypt
Supervised by
Dr.Mostafa AboElsoud
Lecturer
Economics Department
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Chapter one Unemployment
1-Introduction
Everyday millions of women give birth to children all over the
world, and not much time passes before they start the learning process, go
to school, get a degree and then apply for a college spends 4, 5 or even 6
years of his life studying, and after he graduates, he might get lucky and
find a job consistent with his education and social status as a college
graduate, or he might as most of his peers doesn't have that privilege.
The problem of unemployment is a worldwide problem that
represents a major challenge for every country in the world, it is a
problem that could be reduced in some places but never ever was fully
solved, academics and economists always mentioning it and trying to
come up with a solution or a policy to get rid of, it is just never enough.
In Egypt we have been facing this problem for a long time now
there is always more labor force than the existing places can handle, in
2009 the unemployment rate reached 9.4%, but who should take the
responsibility for this, the government ?, policy makers?, the people? .
This paper will be addressing few questions about unemployment,
what is unemployment, how to define it, what are its types, and how they
differ from each other, what are the causes of unemployment?, and why
does it keep increasing?, and finally what can be done to solve it, some
suggestions proposed hypothetically, some were implemented and
succeeded.
2-Unemployment Rate Definition
The labor force is defined as the number of people employed plus
the number unemployed but seeking work.
The participation rate is the number of people in the labor force
divided by the size of the adult civilian no institutional population (or by
the population of working age that is not institutionalized).
The non-labor force includes those who are not looking for work,
those who are institutionalized such as in prisons or psychiatric wards,
stay-at home spouses, kids, and those serving in the military.
The employment rate is as defined the number of people currently
employed divided by the adult population (or by the population of
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Chapter one Unemployment
(Unemployment Rate)
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Chapter one Unemployment
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Chapter one Unemployment
Deflation polices
When the government investing in only few sectors of the
economy instead of all the sectors.
Governmental corruption
According to Worldwide Corruption Perceptions ranking of
countries published by Transparency International, Egypt is ranked 98 of
178.
Lack of local funding (Investment and savings)
According CIA Fact book, the investment in Egypt is only 18.40%
of the GDP in 2010. It’s ranted 108 of 151.
Rapid technological changes
It leads to a huge gap between the needed skills and workers skills
in the labor market.
Privatization
The changes in the economic structure from public to private
without an intensive study lead to Demobilization of a large number of
workers.
5-Unemployment in Egypt
While Egypt had set up the objective of attaining full employment,
this objective remained far from fulfillment at the turn of the new
century. The problem of unemployment worsened further and in now one
of the major causes of concern. One of the major factors of the
unemployment problem is that the labor force has grown at faster rate
than the demand for labor and this trend is likely to continue in the
coming years too.
Today, the questions are: what has gone wrong and why; and how
do we get out of this situation?
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Chapter one Unemployment
Here are some key statistics about the Egyptian economy in 2010:
GDP: L.E.498.1 billion
GDP Growth: 5.259%
GDP Per Capita: L.E. 6,367.43
Population: 78.238 million
Population Growth: 2%
Unemployment Rate: 9.7%
Inflation Rate: 11.703%
Current Account Balance: L.E.4.318 million
Gross Government Debt (% of GDP): 74.216%
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Chapter one Unemployment
Mental health
Health diseases
Tension at home
Political issues
Tension over taxes rise
Insecurity amongst employees
Crime and violence
Suicide cases
Social outing
Standard of leaving
Employment gaps
Lose of skills’ usage
In the last two decades, Egypt continued to witness an increase in the size
of its working population resulting from earlier high population growth
rates. As a result, there was pressure on the labor market to absorb an
increasing number of new entrants, as well as to adjust to economic
reforms. At present, 35% of the working age population in Egypt is youth
(15-24 years of age). Thus, high youth unemployment rates are a major
concern for policy makers.
Addressing parliament in January 2001, the Prime Minister of
Egypt declared that the government's most important task is to "create the
largest number of job opportunities possible for youth and to reduce the
size of accumulated unemployment."
The Government announced then a plan to create some 900,000
jobs in the fiscal year starting July 2001-2002. At the time, the labor force
has been increasing by some 733,000 graduates entering the labor market
each year for the first time. Thus, to absorb the new entrants and reduce
unemployment by 100,000 a year, the economy would need to create
833,000 new jobs every year, which requires an increase in GDP by 6-7%
annually.
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Chapter one Unemployment
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Chapter one Unemployment
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Chapter one Unemployment
6- El Menia axis: this axis creates new dimensions for the extension
in the delta especially that el Menia has university.
7- Asioot axis: it will be pretty much like el Menia axis.
8- Kenna axis: this axis leads to a very wide area that can be
reclaimed that lies in the southern path of the Nile between kenna
and nag3 hammady with the possibility of underground water in
these areas.
9- Luxor axis: this one gives unlimited extension for the
extraordinary tourism projects for the city of Luxor has a huge
mass of monuments and history.
10- Aswan and Kom-Ombo axis: this axis will increase the
agriculture in this area because of the underground water and it is
said that this place was the Nile's passage in old times and shifted
due to geological matters plus this will pave the road for the
construction and development of Aswan's airport to be
international trading airport.
11- Toshka axis: the main highway goes down from the hill where it
gets connected to several places around touska hill; a canal has
been dug to transport the water of the Nile from Nasser Lake to
toushka hill in order to reclaim the lands around the pods that were
created.
12- Nasser's lake axis: Nasser's lake proved to be an excellent
location to develop the fishing industry.
A line of railway to a TGV parallel to the main highway.
A 1.5 meter diameter water tube from Nasser Lake in the south to the end
of the high way on the midetrenian coast and this tube will carry water for
human usage only.
Electricity line to provide power in the initial stages of the project to help
start the project.
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Chapter one Unemployment
References
Radwan, S. (2002) Employment and Unemployment in Egypt: Conventional
Problems, Unconventional Remedies. ECES, Working Paper No. 70. Retrieved from
www.eces.org.eg
Mahabub, H. Credit for alleviation of rural poverty: the grameen bank in Bangladesh.
Retrieved from
http://books.google.com/books?id=GkrRrt_ao50C&printsec=frontcover&dq=Credit+f
or+alleviation+of+rural+poverty:+the+grameen+bank+in+Bangladesh&hl=en&ei=qQ
S0TbC7E8fvsgb8wM3kCw&sa=X&oi=book_result&ct=result&resnum=1&ved=0C
DQQ6AEwAA#v=onepage&q&f=false
www.meamonitor.com
www.CNNmoney.com
www.Economywatch.com
www.reuters.com
www.egyptse.com
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