Labour Market Assessment - Egyptian National Competitiveness

Transcription

Ministry of Planning and
International Cooperation
Ministry of Education
Ministry of Manpower
and Migration
Labour Market Developments and Policies in Egypt
Mona Said
Department of Economics, American University in Cairo
& Economic Research Forum , Egypt
And London Middle East Institute,
SOAS, University of London, UK
•
Launch Event: EGYPT YEP
Egyptian Forum for Youth Employment Promotion
& Torino Process 2014
Safir Hotel Cairo, March 24, 2014
On behalf of:
and Migration
Labour Market Developments and Policies in Egypt
Outline
TRENDS
• Macro Economic and Labor market Indicators
• Trends in Employment, Unemployment and Wages from ELMPS
• The working Poor and Decent Work Indicators
• Competitiveness and MDG Goals
POLICIES
• Social Dialogue and Demographic Transition
• Social protection, Active labor Market and Wage Policies
• Main challenges and policies to tackle them
On behalf of:
Main Trends in GDP Growth and Inflation and Relation to labor Market
Outcomes
MACROECONOMIC INDICATORS
and Migration
Figure 1: GDP, GDP per capita Growth and Unemployment, 1998-2013
15
10
5
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
GDP growth (annual %)
Source: WDI, WB and CAPMAS
On behalf of:
• Growth rates rose over
2003-2008 (7 %)
• Declined to 5.4% average
growth in the 2006-2011
period (prior to revolution).
• Growth in 2011 declined to
1.8 and below afterwards.
• Unemployment as
measured by CAPMAS has
increased as consistent with
macroeconomic trends
• Long run , economic growth
must remain high , around
5%, to absorb new entrants
and Migration
48
6.0
46
44
4.0
42
2012
2010
2008
2006
38
2004
0.0
2002
40
2000
2.0
GDP growth Annual %
ELMPS Employment Rate
On behalf of:
Employment Rate
8.0
1998
GDP Growth Rate
Macroeconomic Trends & Employment from ELMPS
• Employment rate is not very
responsive to macroeconomic
trends
• The employment rate rose from 42
percent in 1998 to 48 percent in
2006 despite overall tepid growth.
Employment rate decreased slightly
to 47 percent in 2012 despite
overall higher average growth in
the 2006-2011 period (prior to
revolution).
KEY LABOR MARKET INDICATORS
and Migration
80
Labour Force Participation rates and employment,
1998-2013
70
60
50
40
30
20
10
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
LFP rate (15+)
Egyptian Forum
for Youth
Employment
Promotion
Female
LFP
rate (15+)
Safir Hotel
Cairo, March
2014and CAPMAS
Source:
WDI,24,WB
On behalf of:
Male LFP rate (15+)
Employment to population ratio, 15+
and Migration
Unemployment
rates, 1998-2013
30
25
20
15
10
5
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
Unemployment rate
Unemployment rate, male
Unemployment rate, female
Safir Hotel
Cairo, March
2014and CAPMAS
Source:
WDI,24,WB
On behalf of:
• INCREASE SINCE 2010 is
CONTROVERSIAL
• Unemployment as
measured by CAPMAS
incorporates
underemployment.
• Rates are lower and
have not changed much
in ELMPS between
2006-2012
• So it is likely that
stability of employment
and underemployment
is outcome affected
most by crisis.
MORE IN DEPTH ANALYSIS 1988-2012:
RESULTS FROM THE 2012 ELMPS SURVEY
Ragui Assaad and Caroline Krafft “The Evolution of Labor Supply
and Unemployment in the Egyptian Economy: 1988-2012” and
“The Structure and Evolution of Employment in Egypt: 98-2012”
And
Mona Said “The Differential Dividends to Revolt: Wage and
Inequality Adjustments in an era of Crisis and Revolution in
Egypt”
and Migration
Demographic Trends in Egypt: Youth Bulge Labor Supply and Unemployment
• The youth bulge has been mostly integrated into the labor
market
• We would expect unemployment to decline with decreasing
demographic pressures, but …
• Unemployment increased slightly, due to deteriorating
economic conditions
• Underemployment has increased substantially
• Female labor force participation decreased
• Demographic pressures on the labor market will resume once
the echo of the youth bulge reaches working age
On behalf of:
and Migration
Market LF definition, Search Required
Males
Unemployment by Gender, Urban/Rural
On behalf of:
Females
Comparison of Unemployment Rate across the CAPMAS
Labor Force Survey and ELMPS 2012
and Migration
Male
LFS
2010 Q1
4.9
2010 Q2
4.9
2010 Q3
4.6
2010 Q4
4.8
2011 Q1
8.9
2011 Q2
8.7
2011 Q3
8.7
2011 Q4
9.2
2012 Q1
9.3
2012 Q2
9.2
2012 Q3
9.1
2012 Q4
9.6
Egyptian Forum
for Youth Employment Promotion
ELMPS
Safir Hotel Cairo,
March 24, 2014
2012
4.2
Female
Total
20.8
22.0
23.0
22.4
21.5
22.3
22.7
23.2
23.8
24.1
24.0
24.7
8.7
8.9
8.8
8.8
11.8
11.8
11.9
12.4
12.6
12.6
12.5
13.0
23.7
8.7
On behalf of:
and Migration
Visible underemployment (working less than full-time involuntarily)
has
increased dramatically
from 2006 to 2012. This is a sign of
9.6
10.0
9.3
serious distress in the labor market
Percentage Underemployed
9.0
7.9
8.0
7.0
6.0
5.0
1998
5.0
4.3
2006
4.0
3.0
2012
2.8
2.0
2.6
1.9
1.9
1.0
Launch
0.0Event: EGYPT YEP
Male
On behalf of:
Female
All
and Migration
Why is unemployment relatively stable despite serious distress in
labor market?
• Unemployment in Egypt is structural not cyclical
• It affects a very specific group of people:
– Young, educated, new entrants
– It includes very few people who were employed and lose their jobs, but
mostly people looking for formal work for the first time
• Unemployment increases when large number of educated new
entrants are trying to enter labor market
• This is not the case in this period. The number of youth entering
the labor market has actually declined due to demographic changes
• Unemployment did not actually decline as a result because it is
taking longer for people to leave the unemployment queue
On behalf of:
Continued increase in participation for males, but reduced participation
for females as opportunities in labor market contract
and Migration
Labor Force Participation Rates (15-64)
Market Labor Force, Search Required
100
Labor Force Participation Rate
(Percentage)
90
80
73.2
77.2
80.2
70
60
47.2
50
51.9 51.1
2006
40
30
27.3
21.4
2012
23.1
20
10
0
Male
Female
On behalf of:
1998
Total
The increase of male labor force participation is primarily due to the aging of the youth bulge.
Participation among young adult males did not increase that much. The decline among females
cannot be attributed to age structure
and Migration
Young Adult (25-29) Labor Force Participation
Market Labor Force, Search Required
100
Labor Force Participation Rate
(Percentage)
90
95.8 96.7
90.3
80
65.5
70
59.5
60
59.1
1998
50
2006
40
30
28.2
32.9
2012
27.7
20
10
Launch Event: EGYPT0YEP
Egyptian Forum for Youth Employment
Promotion
Male
On behalf of:
Female
Total
The vast majority of the unemployed are still the educated (technical school and
university graduates), but there is a slight increase in the proportion of the
uneducated unemployed, among males
and Migration
Distribution of Unemployed by Education
On behalf of:
and Migration
Conclusion Regarding Labor Force Participation and Unemployment
• The youth bulge has mostly been absorbed into the labor market,
temporarily decreasing the pressure of new entrants  slower increases
in unemployment
• However, the ‘echo’ will soon start entering the labor market.
• Underemployment, which affects a more vulnerable population, has gone
up substantially and is the main indicator of labor market distress
• Women are less likely to participate in the labor force, mostly because of
falling participation rates among middle-aged educated women.
• Women are an increasing proportion of the unemployed as well.
• The unemployed are slightly older as the youth bulge moves to older ages
and slightly less educated
On behalf of:
and Migration
Key Trends in Employment in Egypt
• While unemployment is primarily structural, employment
conditions are much more sensitive to economic trends and
crises
• Comparing 2006 and 2012, there has been a large increase in
irregular work
• Public sector growth has stagnated, and the private sector
must drive the economy
• Employment in the private sector continues to be dominated
by small firms and informal work
• Overall, conditions in the public sector have been stable or
improved, while conditions in the private sector have
Egyptian Forum
for Youth Employment Promotion
deteriorated.
On behalf of:
and Migration
Percentage
Changes
since the Revolution
100.0
1
1
2
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2
4
18.7
25
10
52
17
6
58
11.9
Other
8
16.4
30
8
32
43
25
34
17
21
6
56
Improvement in
Conditions
Increase in Hours
23
9
25
28
2
15
45
Increase in Costs
21
2
3
Decrease in
Wages
Layoffs
Lack of Security
Decrease in Hours
Fall in Sales
On behalf of:
Among
those
& Torino
Process
2014 reporting a change in job conditions
Safirpast
Hotel Cairo,
March 24,(24.8%
2014
3 months
reported such a change)
relating to the revolution in the
and Migration
Summary & Conclusions on Employment trends
• Net job creation fell
• Since 2006, substantial deterioration in employment
conditions
• Irregular wage work has risen
• Employment in the private sector continues to be dominated
by small firms
• First jobs are dominated by informal private wage work
• Revolution has exacerbated public/private disparities
• Important to focus on those who are employed but in
precarious employment conditions
On behalf of:
TRENDS IN REAL WAGES &
INEQUALITY
•Summary of Findings on Real Wages and Earnings Inequality :
Median real hourly wages
Share of Low Wage Earners
5.00
0.60
0.50
0.40
0.30
0.20
0.10
0.00
4.00
3.00
2.00
1.00
0.00
1988
1998
2006
1988
2012
1998
2006
0.120
Decile Ratio (p90/p10)
0.100
8.00
Vocational
Secondary
Education
0.080
6.00
0.060
4.00
0.040
2.00
0.020
University
Education
0.000
0.00
1988
1998
2006
2012
2012
1988
1998
2006
2012
and Migration
• Key
1988-98:
period
of real wage
erosion and and
wage Working
compressionPoor
Trends
in Wages,
Inequality
• 1998-2006, 2006-2012 both real wages and wage inequality started rising again for
most groups in Egypt by 2012.
• The proportion of wage workers that can be classified as low-waged has significantly
declined in comparison to 1998, but rose again in 2012
GENERAL STATEMENT : The 2006 wage structure very much resembles that of 1988, in
terms of the level and dispersion of real wages as well as the percentage of workers
with low wages. This appears to have continued in 2012, but proportion of low waged
significantly rose and position of women worsened
After almost two and a half years of deregulation measures, in addition to past
4 years of downturn, labor market rewards in Egypt have mostly followed a
"U-turn path" of decline followed by recovery and return to pre-adjustment
level, and rise in wages and inequality is continuing in 2012, with an
increase of share gender gap and of those under the low earnings (poverty)
line in the private sector.
On behalf of:
THE WORKING POOR IN EGYPT
and Migration
• To identify poor earners, a low earning line is computed using the
official national poverty lines
 First, the individual regional specific poverty lines are converted to real terms
using the consumer price index (taking 2012 as the base year),
 .Second, the per-capita region-specific poverty lines are scaled up by the
regional median ratio of household members to working-age employed
household members to account for the fact that each worker’s earnings are
used to support not only him/herself but also other non-working members of
their household urban upper Egypt dwellers,
• For the sake of comparability and to abstract from changes in dependency
ratios that may have occurred during the period, the 2012 low earning line
is used to identify low earners in the 1988, 1998, 2006 and 2012 samples
On behalf of:
and Migration
Low
Wage
Workers
Table 3.
Real Monthly
Per-capitaAnalysis:
Region-Specific2012
Poverty lines and Low Earning
Line
(in 2012 L.E.)
Real monthly
region-specific
lines
per-capita Real monthly regionDependency
poverty specific low earning
Ratio
lines
Region
Metropolitan
Lower Egypt Urban
Lower Egypt Rural
Upper Egypt Urban
Upper Egypt Rural
Launch
Event:
EGYPT YEP
Total
Egypt
2011
304
282
279
293
281
On behalf of:
286
2012
926
845
837
878
983
899
2012
3.06
3.09
3.23
3.31
3.74
3.34
•Second Finding: Using regional poverty lines, We observe an Increase in the share
of low waged workers since 2006, but not quite up to 54% observed in 1998
Inverse U: Share was 34% in 1988,
increased to 54% in 1998
and then down to 39% in 2006, then up again to 46% .
B. Share of low-Wage Earners
0.60
0.50
0.40
Share of earners with real hourly
wages below the regional real low
earnings threshold
0.30
0.20
0.10
0.00
1988
1998
2006
2012
By institutional Sector
Level
Change
1988- 1998- 200698
2006 2012
(in percentage points)
RECODE of crsectr
1988
1998 2006
(in percent)
2012
government
0.39
0.60
0.35
0.43
36
-71
18
public enterprise
0.20
0.34
0.21
0.28
43
-61
24
private
0.36
0.52
0.45
0.50
30
-16
10
Total
0.34
0.54
0.39
0.46
37
-37
15
DECENT WORK INDICATORS
Formality of employed persons, ELMS’s 1998-2012
and Migration
70.0
60.0
50.0
40.0
Formal
30.0
Informal
20.0
10.0
0.0
Total
Male Female Total
Launch Event: EGYPT
YEP
1998
Source: ELMPS raw data files
Male
On behalf of:
2006
Female Total
Male
2012
Female
The proportion of good jobs is higher for females than males, and
that of poor jobs is lower among females youth workers.
and Migration
Proportion of Good, Fair and32Poor Jobs, male and female
SYPE 2009
100%
90%
12.2
23.2
13.8
80%
70%
60%
50%
70.4
70.1
68.2
40%
20%
17.4
0%
Launch Event: EGYPTmales
YEP
8.7
On behalf of:
females
Source: Survey of young people 2009 (SYPE 2009)
Fair jobs
Poor jobs
30%
10%
Good Jobs
16.1
Total
and Migration
Good jobs are what we expect them to be. Mostly permanent, with
social insurance and medical insurance
33 coverage, and in high quality
workplaces.
Proportion of Jobs by Job Quality that have Listed Feature
Good Jobs Fair Jobs Poor Jobs All Jobs
Permanent (regular) work
89.4%
55.1%
17.2%
53.7%
Social Insurance Coverage
74.3%
6.9%
0%
15.1%
High Quality Workplace (office, factory, apartment)
98.9%
73.6%
34.9%
70.8%
Wage & Salary Work
98.2%
84.5%
87.7%
86.9%
Medical Insurance
74.6%
6.7%
0%
15%
Manag., Professional or Technical Occupations
41.8%
7.2%
1.8%
11%
Contract Status
77.1%
7.5%
0%
15.8%
Use of Computers
40.7%
4.4%
0.15%
8.7%
On behalf of:
The share of good jobs is higher in public sector for both males and females. Fair jobs are
more prevalent in the private sector, for both males and females. Poor jobs are almost
negligible in the public sector.
and Migration
Distribution of Jobs by Job Quality and Sector of Ownership and gender
100%
8.0
90%
11.8
90%
80%
80%
70%
70%
60%
73.3
50%
42.8
60.2
60%
74.9
40%
Good Jobs
50%
Fair jobs
40%
30%
Poor jobs
30%
20%
10%
100%
20%
18.8
13.3
0%
females
Private
Sector
Egyptian
Forum for
Youth Employment Promotion
36.9
10%
0%
males
56.8
2.9
males
On behalf of:
Public Sector
0.5
females
34
Job quality for youth depends strongly on firm size.
Females have lower JQ in small firms.
and Migration
Mean Job Quality by Firm Size and gender
1.50
1.00
0.50
0.00
DK
(1-4)
(5-9)
(10-24)
(25-49)
(50-99)
(100+)
Total
-0.50
-1.00
males
-1.50 & Torino Process 2014
On behalf of:
females
Total
35
COMPETITIVENESS AND MDG
EMPLOYMENT GOALS
and Migration
Competitiveness Indicators of Egyptian labor Market
• Labor Market Efficiency Pillar of the Global Competitiveness
Report, and its constituent sub pillars
• Social Justice Index (OECD methodology) for Egypt
–
–
–
–
–
–
Poverty prevention.
Access to education.
Labor market inclusion.
Social cohesion and non-discrimination.
Health
Intergenerational justice (i.e. equity in burden-sharing across
generations)
On behalf of:
and Migration
MDG Employment Indicators con’t
Table ?: Employment-to-population ratio for Youth (%)
2000
2005
2010
2011
2012
Percentage Change 2000 to 2012
Total
23.6
25.2
25.0
21.9
21.6
-2.0
Males
36.3
40.9
40.5
37.6
36.9
+0.6
Females
10.5
8.9
9.0
5.7
5.8
-4.7
Egypt (15-24)
Source: ILO, Key Indicators of the Labour Market, 7th edition.
*CAPMAS, Statistical Yearbook, Various Years
On behalf of:
and Migration
Figure ?: Youth Employment-to-population ratio in Egypt by Gender
(population aged 15-24, %)
45
40
2000
35
30
2005
25
2012
20
15
10
5
0
Male
Source: ILO, Key Indicators of the Labour Market, 7th edition.
On behalf of:
Female
and Migration
• Labour productivity
– In Egypt, labour productivity rates were declining during the first half
of the 2000s, before hitting its highest rate of 6.72% in 2006.
On behalf of:
and Migration
• Vulnerable employment rate
– In Egypt, the rate of vulnerable employment has increased by 2.51%
from 20.95% in 2000 to 23.46% in 2010.
– The vulnerable employment rate in Egypt is almost half the global rate
(50.2%), and remains much lower than the average for North Africa
(40.6%) in 2010.
On behalf of:
and Migration
Figure ?: Share of Vulnerable Employment in Total Employment
by Gender (%)
50
45
40
35
30
Male
25
Female
20
Total
15
10
5
0
2000
2005
Source: Calculated from CAPMAS, Labour Force Sample Survey, Various years.
On behalf of:
2010
and Migration
• Working Poverty
– National poverty line is set at 10.89 LE per day (1.58 USD) (CAPMAS,
2013)
– In Egypt, the working poverty rate has increased from 18.3% percent
in the year 2000 to 29% in 2011.
– Egypt’s working poverty rate is significantly smaller than the global
rate, and slightly exceeds that of the MENA region.
On behalf of:
and Migration
• Share of women in wage employment in the non-agricultural
sector
– Egypt has witnessed a declining trend from 1990 till 2—6, followed by
a sharper rise up until 2010 (CAPMAS)
– The ratios recorded in Egypt are considered extremely low when
compared to global shares, and slightly below those of North Africa.
On behalf of:
and Migration
Figure ?: Share of women in wage employment in the nonagricultural sector (%)
World
North Africa
Egypt
38.2
37.6
20
19.7
19
2001
2006
Source: CAPMAS, Statistical Yearbook, 2011, and Global Employment Trends, 2013.
On behalf of:
17.7
SOCIAL DIALOGUE AND DEMOGRAPHIC
TRANSITION
and Migration
Labor Policies Affecting Employment in the Post
Revolution: Macroeconomic and Sectoral Policies
• The revolution has added certain new short-run dimensions
to the pre-existing economic and labour market challenges
that Egypt was already facing.
• The creation of the Egyptian Federation for Independent
Unions represents a major step toward establishing proper
social dialogue. However, much institution building is still
needed before the social partners are able to engage in a
meaningful dialogue process.
On behalf of:
and Migration
MDG Employment Indicators
• Employment-to-population ratio
– In Egypt, the ratio reached 44.4 % of adult population in 2010 (the
highest ratio since the beginning of the decade). It declined to 43.1
percent in January 2011 following the revolution.
On behalf of:
and Migration
Social Dialogue and the Role of Labor Market Institutions
• The Egyptian revolution represented both the regime’s
inability to manage social and economic change, as well as the
dissatisfaction amongst broad swathes of the population.
• Institutional development among labor market institutions is
key towards:
1) Ensuring democratization
2) Conflict management
On behalf of:
and Migration
Ensuring democratization
• Freedom of Association
– “Ihtijajat fi’awiyya”
– Changing the legal framework regulating trade union affairs
• A New Social Contract
– The need of the government to maintain legitimacy
On behalf of:
and Migration
Conflict Management
• Collective bargaining
• Reforming labor market institutions for social dialogue
– Ministry of Manpower and Migration
– Worker Organizations
– Employer Organizations
On behalf of:
SOCIAL PROTECTION AND ACTIVE
LABOR POLICES
Egypt Social Insurance System, main laws
and Migration
Law
Who Covered
Contribution
No. 79
at 1975
Wage and salaried Mandatory
workers in public
and private sectors
Responsibility Coverage
The
employers
For sickness and
maternity insurance,
workplace injury,
Unemployment
benefits
No. 108 Employers and
in 1976 self-employed
Mandatory
On them
Old age pensions,
disability and
survivors benefits
No. 50 Migrants
in 1978
voluntary
On them
Old age pensions,
disability and
survivors benefits
No. 112 Casual and
in 1980 irregular laborers
voluntary
On them
Insures only for oldage, disability and
survivors benefits
On behalf of:
The new Law No. 135 in 2010
Egypt Social Insurance System, main
characteristics
and Migration
Law
Who Covered
Contribution
Max. limit
No. 79 at
1975
Wage and salaried
workers in public and
private sectors
14% by the employee
26% by the employer
1% the government
912.5 LE for
Basic Salary
1200 LE for the
variable wage
No. 108 in Employers and self1976
employed
15% of the declared wage
1000 LE
No. 50 in
1978
15% of the declared wage
1000 LE
1 LE monthly
None
Migrants
No. 112 in Casual and irregular
1980
laborers
No. 135,
All
2010
11% by the employee
On behalf
of:
19.5%
by the employer
25% the government
No max. limit
The new Law No. 135 in 2010 characteristics
and Migration
• reduction in the contribution rates on basic wages to 11% for
the employee and 19.5% for the employer (compared to the
current 14% and 26%, respectively)
• the cap on the pensionable salary
• regular adjustment of pensions for inflation
• raise the retirement age to 65 instead of 60 years old
• This increase in age will occur gradually, with the retirement
age set to 61 in 2015, 62 in 2018, 64 in 2024, and finally
reaching 65 in 2027
• 15% of national average wage as minimum pension for all
persons aged 65 or over who do not have another form of oldage support
Event: EGYPT YEP
• Launch
the
law extends unemployment insurance, for all workers who
have contributed to social insurance for at least 12 months
On behalf of:
MinistrySI
of Planning
and declined between 1998 (97%) and 2012 (93%)
Public Sector
access
Private Sector
Ministry ofWage
Manpower Employment: SI access increased between 1998 (22%) and 2006 (24%), then almost stalled
and Migration
to 2012 (23.5%)
Non-Wage workers have the lowest access SI coverage
The Percent of Workers (15-64) who have Social Insurance Coverage by Employment Status,
1998, 2006, 2012
40.7
Total
41.3
2012
51.0
Unpaid Family Worker
1.9
1.6
4.1
2006
1998
14.3
Employers/Self-employed
19.8
30.2
23.5
Private Sector Wage Employment
23.9
22.0
91.4
Public Enterprises Wage Employment
94.4
96.5
93.2
Government
WageYEP
Employment
Launch
Event: EGYPT
0
10
94.9
On behalf of:
20
30
96.7
40
50
60
70
80
90
100
WHERE are the socially insured jobs?
and Migration
80
70
Firm size substantially increases the
likelihood of having access to SI
among wage workers.
60
50
40
30
20
10
0
1998
70.0
< 10 workers
2006
10-29 workers
30-49 workers
2012
50+ workers
60.0
50.0
Economic Activity The share of
covered private regular wage
workers is highest in the
transportation, storage and
communication sector, followed
by the manufacturing sector
40.0
30.0
20.0
10.0
0.0
1998
2006
2012
Agriculture & Fishing
Broad manufacturing group
Launch
Event: EGYPT YEP
On behalf of:
Construction
Wholesale & retail trade, hotel & restaurant
Egyptian
Forum for Youth Employment Promotion
& Torino
2014
Transp., Process
storage & communication
Other services
Key Messages “ Dynamics of Access to Social Security on the Egyptian
Labor Market during the 1998-2012 Period” by Roushdy and Selwaness
Why employers do not cover their employees in private sector?
The high contribution rates requested from both the employer and employee and weak
law enforcement encourage employers and employees to not participate in the social
insurance system.
Also, workers’ ignorance of the SIS, its benefits, and how it works.
 A thorough evaluation of current law combined with proper planning of
its implementation is needed.
 Awareness-raising campaigns, particularly among women and youth, is
urgently needed.
 Incentives for employers to insure their employees might be a good
option (e.g. tax reduction,…).
and Migration
Active Labour Market Policies
• Youth Employment Action Plan
– The MoMM, with the support of the ILO, launched the Youth
Employment National Action Plan (NAP) 2010-2015, in May 2009.
– Three million jobs are expected to be created throughout the five year
plan, amounting to 620 thousand jobs annually.
• National Programme for Employment
– 3 Pillars
• Boosting public projects in utilities and infrastructure
• Promote SMEs
• Large scale national projects
On behalf of:
and Migration
Wage Policies
• In order to achieve a better distribution of income, the government
intends to spend LE 9 billion during the FY 2011/2012 to finance the
first phase of the 5-year Public Wages and Salaries Matrix
restructuring plan.
– The minimum wage of the lowest grade of any government employee
employed before July 2011 has been set at LE 708, instead of LE 444
before July 2011 (see Table 2) and should reach LE 1200 by mid 2015.
• The government has also set a wage ratio of 36 to 1 for all
governmental managerial positions in order to limit the huge
disparities found between employees of the same government
agencies and at similar ranks.
On behalf of:
and Migration
Main Challenges Related to the Current Employment and Labour
Market
• Job creation has been one of the most prominent challenges
facing Egypt for the past decade.
• Economic performance has been varied in the past decade,
but even in periods of high growth, the employment content
of growth has not been strong enough to absorb new labour
market entrants.
• The increase in productivity levels (measured as output per
worker employed) has been minimal in Egypt.
• Women and informal sector? Job quality?
On behalf of:
and Migration
Main Challenges Related to Youth Employment
• Economic reforms conducted in the early to mid-1990s in the
context of ‘Washington Consensus’ stabilization and structural
adjustment packages lifted Egypt’s GDP growth profile, but
the employment content of this growth remained weak.
• Education, training and skills mismatches between jobseekers
and jobs available have hampered employment.
• Young women in particular have been harder hit by
unemployment since the revolution, with their
unemployment rates being four times greater than their male
counterparts.
On behalf of:
and Migration
Policy Options to Tackle the Challenges
•
•
•
•
•
•
Employment-intensive investment policies and programmes
Skills development programmes
Incentives to expand work experience programmes
Investment in labour market intermediation services
Encouraging entrepreneurship
Well targeted job-placement subsidies
On behalf of:

Labour Market Assessment - Egyptian National Competitiveness

Transcription

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