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February 14, 2025

Ministry of Labor Aims to Cut Youth Unemployment, Boost Women’s Employment, and Launch National Employment Strategy

Egypt

The government has not only aimed to reduce unemployment rates from 13% to 7% within ten years but has also formulated a plan under the Ministry of Labor, led by Minister Hassan Shahata, to decrease unemployment rates from 7% to the global average of 5-6% within five years. This comprehensive strategy involves several key aspects, including increasing employment rates through partnerships with the private sector, promoting the employment of priority groups such as individuals with disabilities and women at the local level, and addressing irregular labor.

The Ministry of Labor aims to raise the female employment rate to a minimum of 25% from the current percentage. The female workforce comprises approximately 5.455 million, as per the Labor Force Survey results from the Central Agency for Public Mobilization and Statistics for the second quarter of 2023. The female unemployment rate currently stands at 17.3% of the total female workforce for the current quarter of 2023. The state has supported women’s employment and empowerment through the Labor Law No. 12 of 2003, focusing on the working conditions and job-related matters of women, preserving and protecting their rights, and facilitating their balance between family duties and professional or occupational activities. The law establishes regulations and rules for employing women in private sector facilities. Additionally, Ministerial Decree No. 43 of 2021 was issued to define the jobs that women are not permitted to work in, and Ministerial Decree No. 44 of 2021 was issued to regulate the night employment of women.

In alignment with the law’s requirement to allocate 5% of the workforce in facilities to employ individuals with disabilities, Minister Hassan Shahata emphasized the necessity to continue the policy of identifying, training, and employing individuals with disabilities to reduce their unemployment rates, in compliance with President Abdel Fattah El-Sisi’s directive to integrate them into the labor market. The Ministry has completed the registration of 70% of the 24,069 facilities across all governorates, as of January 2023. The Ministry is also working towards launching the National Employment Strategy, developing a sustainable mechanism for its implementation in coordination with all relevant ministries and authorities, and unifying the state’s plans and programs into a cohesive strategy to eradicate unemployment.

To support workforce development, the Ministry is focusing on enhancing workers’ skills to meet the needs of the local and international labor markets. It has incorporated vocational training as a key element in its five-year plan, aiming to increase the rates of transformative training programs by 40% to train individuals with higher and intermediate qualifications in new professions that differ from their educational qualifications. This includes preparing youth for future jobs, which rely heavily on artificial intelligence and information technology. The Ministry is also introducing mobile training units for AI training in rural areas as part of the “Decent Life” presidential initiative. Additionally, the Ministry is working on launching a new government website for employment.

In response to the importance of increasing the skills of the Egyptian workforce to match the needs of the local and international labor markets, the Ministry has placed vocational training as a cornerstone within its five-year plan. The Ministry aims to enhance sector-specific skills for the Egyptian workforce and prepare youth for future jobs, including those relying heavily on artificial intelligence and information technology. The plan includes the establishment of mobile training units for AI training in rural areas as part of the “Decent Life” presidential initiative.

Furthermore, the Ministry is committed to continue to register and document new irregular labor in work sites to expand its database, as the number of registered irregular workers reached one million, 156 thousand, and 562. The goal is to provide social and health services, monitor their employment, and enact legislative measures, including transforming accounts into a fund for proper governance and investment of funds.

In conclusion, the Ministry of Labor’s five-year plan encompasses the launch of the national platform for Egyptian labor market information, which aims to collect and analyze labor market data and utilize its results to monitor current and future labor market needs, design active labor market programs and evidence-based policies, and contribute more extensively to the eradication of unemployment. The Ministry is also enhancing the utilization of electronic job market platforms by regulating electronic employment processes and combating counterfeit websites. Additionally, the plan includes the expansion of the development of 170 employment offices in directorates, digitizing their services and linking them electronically with the Ministry. All these efforts are geared towards achieving more stability in labor relations within facilities and creating an attractive work environment for investment while complying with international labor standards.

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