Experts say rising unemployment could threaten the
country's fragile economic situation unless the government steps in, Mona El-Fiqi reports
[n the course of the past month, tens of thousands
of Egyptian workers who escaped from Libya, due to the current unrest, returned home to join millions of universities, high school graduates and others in the difficult mission of finding a job.
According to the Ministry of Foreign Affairs, over
180,000 workers returned from Libya until 10 March, to add their names to the millions of unemployed registered by the government.
According to the Central Agency for Public
Mobilization and Statistics (CAPMAS), the unemployment rate during the last quarter of 2010 was 8.9 per cent compared to 9.4 per cent during the same period in 2009. Abu Bakr El-Guindi, CAPMAS chairman, explained in a press conference last week that although the unemployment rate was reduced in 2010, it is expected to rise in the coming period if the different sectors of the economy do not start working at full capacity.
Unemployment rate is only one of the economic
indicators which will be affected by the current instability in Egypt. El-Guindi expected the growth rate to drop from 5.8 to 3.8 per cent, and the budget deficit to rise from 7.9 to 8.5 per cent. Haindi Abdel-Azim, former president of Al-Saciai , Academy /or Administrative Sciences, explained that the reason behind the reduction of (I 1 unemployment rate during 20/0 was the increase 2 of foreign direct investments (FD1) flow to reach 1 $8.5 billion, which provided job opportunities for ( a large number of workers. Since the FDI is < currently on hold and local projects are also < unstable, Unemployment rate is expected to rise < unless the government carries the burden, ol establishing joint ventures with the private sector, ( particularly • in the agricultural and industrial sectors.
According to Abdel-Azim, the government should
boost local tourism and activate the stock market. The banks should provide facilities to finance new investments when a good feasibility study is available.
For a start, last week the government began to
apply some procedures to control” the unemployment rate. Minister-of Manpower and Immigration Ahmed Hassan El-Borai decided to stop issuing work permits for foreigners in the coming period except for highly skilled persons with rare specializations. The aim of the decision is to keep jobs for Egyptian workers.
the move was welcomed by experts who argue
that it will save job opportunities for Egyptians and prevent employers from taking advantage from the presence of. foreigners in the market.