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Aya Shabaan 20206143

. Radwa Hamed 20205670

The term unemployment refers to a situation where a person actively

searches for employment but is unable to find work. Unemployment is
considered to be a key measure of the health of the economy.
The most frequently used measure of unemployment is the unemployment
rate. It's calculated by dividing the number of unemployed people by the
number of people in the labor force.
Egypt Unemployment Rate dropped to 7.00% in Jun 2023, from the
previously reported figure of 7.10% in Mar 2023. Egypt Unemployment Rate
is updated quarterly, available from Mar 2003 to Jun 2023, with an average
rate of 10.45%.
Youth unemployment in Egypt is a central policy issue. Egypt has witnessed
heightened political mobilization of young people in 2011, as part of what
has been described in the media as the “Arab Spring”. Youth employment
issues are key in this context. Particularly as young people constitute the
majority of the unemployed in Egypt. There is also a high prevalence of
unemployment among youth, particularly the young women and the
educated.
There are many reasons for the high youth unemployment rate in Egypt.
First and foremost, the level of economic growth in the country did not
match the demographic pressures of having an increasing number of new
entrants to the labor market from the youth every year. Population
pressures, not matched by adequate economic growth, remain a key factor
to youth unemployment in the country.
Unemployment rate was at 19.7% among youth aged 20-24, compared to
an overall rate of 7.4% for those aged 15-64.1
In 2021, highest unemployment rates for 15-64 years, were in South Sinai
(33.6%) and Port Said (25.2%), while the lowest
unemployment rates were in Qena (1.6%) and Dakahlia (2.5%).
Holders of secondary education or university and higher were more likely to
be unemployed, showing a mismatch between education and the labour
market demands.
Youth in the 20-24 age group represent only 11.69% of total employed,
compared to about 28% for the 30-39 age group.The unemployment rate in
2021 for female youth aged 15-29 is consequently much higher than that of
male youth, at 35.9% and 10.8%, respectively of the total unemployed
population.
According to the agency, the unemployment rate among males was 4.8% of
the total males in the workforce during 2Q 2023, compared to 4.5% in 1Q
and 5.0% in 2Q 2022. The unemployment rate among females was 17.3% of
the total females in the workforce during 2Q 2023, compared to 19.2% in
1Q and 17.5% in 2Q 2022.
There is a Impact Covid_19 on Unemployment:
Unemployment increased by three percentage points between February
and June 2020 in the sample (from 5% to 8%), and economic inactivity
(those not working nor looking for work) increased by another 4 percentage
points. Overall the share of those in employment fell by 8% (-9% in urban
areas and -7% in rural areas).
Types Of Unemployment :
1. Classical Unemployment Classical unemployment is also known as
“real wage unemployment” or “induced unemployment.” It’s
when wages are so high that employers can't hire all the available
workers. In other words, wages are higher than the laws of
supply and demand would normally dictate. It occurs in one of these
three situations: i. Unions negotiate higher salaries and benefits. ii.
Long-term contracts set a wage that has become too high due to a
recession. iii. The government sets a minimum wage that's too high.
 The result is that companies must pay more in wages per employee.
So, they can afford fewer employees. Those that are laid off are
victims of classical unemployment.

2. Seasonal Unemployment It’s in for certain jobs at certain time of

the year. Like farming, the ones who work in Christmas and the
ones is working north case so they are working only in summer
/winter. The BLS does not measure seasonal unemployment. Instead,
it adjusts its unemployment estimates to rule out seasonal factors.
This adjustment gives a more accurate estimate of the
unemployment rate.

There are a lot of reasons for unemployment :

1.One of the main causes of unemployment is a weakening economy, an
inability of the government to implement a realistic budgetary strategy, and
global recession. Some industries, like as tourism and foreign investment,
are having enormous problems because of political upheaval, governmental
instability, social security issues, and investment insecurity. Government
policies, ineffective governance, resource misuse, etc., include the lack of a
coherent strategy for employment development. Effect of Economic
Policies: Egypt's high unemployment is a direct result of the nation's shoddy
and unrealistic economic policy. The primary causes of unemployment are a
lack of an open market economic policy, a lack of competitive investment
policies, and a policy of high tax rates. Due to a lack of comprehensive
world-class education and training, the Egyptians' skills are insufficient.
2.Egyptian Government allocates the lowest budget for Research and
development in the world. Imbalance between workers qualifications and
the demands of the labor market. Egyptian workers are facing lack of skills
and competent for a competitor job. Still technical education does not get
priority in the country, so workers usually fail to get good jobs.
Also, Unemployment NEGATIVE IMPACTS ON ECONOMIC AND SOCIAL LEVELS :
The unemployment has nasty impact on society, economy, health etc. an
unemployed person who does not have any job so its financial losses for the
unemployed workers and individual losses his or her productivities and a
bad effect of national gross domestic productivity. National economy
suffers because of lower input. Due to unemployment problems an
unemployed person’s overall tension increase which may affect his/her
physical such as blood pressure, depression, diabetes and mental health like
grief, anxiety, loss interest in life and those physical and mental problems
may affect or spread negative attitude his or her other family members and
when this problems spread to other family members it may lead turmoil,
quarrels, argument, develop negative attitude towards common things in
life. Mental tension always exist which creates and leads to fear and
unsecure.

There are a lot of Solutions for unemployment :

1. Decentralization of industrial activity: Decentralization of Industrial
activity is necessary to reduce unemployment. If industrial activities are
centralized at one place, there will be less employment opportunities in the
under developed areas. So, Govt. should adopt such policies which
encourage decentralization of industrial activity.
2. Change in industrial technique: Production technique should suit the
needs and means of the country. It is essential that labor intensive
technology should be encouraged in place of capital-intensive technology.
3.Full and more productive employment: The main objective of county’s
employment policy should be to increase employment opportunities and
productivity of labor. Government should adopt a policy that provides
employment to all people.
4.Increase in Production: To increase employment, it is essential to increase
production in agriculture and industrial sectors. Development of small and
cottage industries should be encouraged.
5. High rate of capital formation: Rate of capital formation in the country
should be accelerated. Capital formation should be particularly encouraged
in such activities which generate greater employment opportunities.
Capital output ratio should be kept low.
6.Industries in co-operative sector: Industries in co-operative sector should
be encouraged. Kerala Govt.’ set up a textile mill covering 600 unemployed
persons on co-operative basis. This is a novel approach to fight against
unemployment. Different State Govt. should take necessary steps in this
direction.