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Unemployment is among the serious problems facing the social, economic and financial systems around the world. In Egypt, it has become the test for the Egyptian Government since the available job opportunities are not enough to cater for the growing population. As years go by, the number of workforce has increased. Consequently, increases the volume of unemployment. Research shows that by 1960s, total unemployed in the country was not more than 200 000, by 1976 it had risen to 850 000, and by 1986 it was rising to 1 million (Nagwa, Afaf & Monia, 2010). The opportunities of the job in Egypt have been realized to grow at a slower pace as compared to the rate at which its population is growing. In some areas, there is more than enough whereas in other areas the laborers are scarce. The young people are affected by this issue of unemployment most of all; it has been found that graduates wait for more than five years before the labor administration considers them.
Causes of Unemployment in Egypt
Overpopulation is one of the major causes of joblessness in Egypt. The workforce has grown at a faster pace as compared to demand labor. It has been proved that since the 1960s, the population has grown at a faster rate, which ensued in the consequent growth in the labor force. The annual average workforce growth rate in Egypt has been found to be 523 000 laborers, while the annual average rate of employment is 435 000 (Nagwa, Afaf & Monia, 2010). As much as between the years 2001 and 2010, the expected growth in labor supply was 2.6%, the annual average increase of new employment seekers was also expected to be 638 000 (Nagwa, Afaf & Monia, 2010). There is still a significant increase of unemployment in the coming years in Egypt.
Another cause of unemployment in Egypt is lac of proper education and training. In Egypt, it has been realized that there are too many school dropouts, thus, the education provides a low standard of qualification. Basic skills are mandatory for any young person for the purpose of employment and best output in their workplace. There is also no vocational training for those ones already employed for the purpose of maintaining the market standards. This has resulted in unemployment because there are available jobs, but those to be employed do not have adequate education, thus, rendering this population jobless.
The effect of economic policies has also caused unemployment in Egypt. With the assistance of international community, Egypt is supposed to move to a market oriented economy so that its population could integrate with the world. The key thing is to sign an IMF program for it to take effect. Since this policy was meant to transform the region into a global center, more promising people had to be brought by. This means the natives were to be rendered jobless unless someone achieves world market standards (Nagwa, Afaf & Monia, 2010).
The government policies in Egypt have led to unemployment in Egypt. It has been realized that employment insurance does not exist, the people have very poor social insurance and the overall population is growing at a high pace. The head of the government in Egypt needs high payment thus making the economy of the country hopeless. With low economy, people cannot be employed because of unavailability of wages. The government policies are not giving room for investment and without investment, employment opportunities have to be less. There are also personal reasons for unemployment in Egypt. People have their own reasons as to why they are not engaged in any form of employment (Economy Watch, 2010).
Effects of Unemployment in Egypt
Unemployment has impaired the performance of families. The interaction between children and parents, as well as between partners has been affected due to unemployment. The male partners have been affected highly because of the change of their roles.
Unemployment has resulted to increase in crime rates. People need money for daily survival and needs. Also, crime rates have increased due to idleness of young people.
Solutions to Unemployment in Egypt
The problem of unemployment in Egypt can be solved by ensuring that the economic policies implemented are not affecting the country’s population negatively. The policies should aim at developing the country and benefiting the current population regardless of educational and financial level (Economy Watch, 2010).
The government is also supposed to come up with proper policies. Investments that can open job opportunities and at the same time advance the economy of the country will reduce the level of unemployment. On the same note, the government heads are supposed to be fair in their activities so that they cannot shrink the economy and, finally, make the employees payments miserly (Nagwa, Afaf & Monia, 2010).
The population of Egypt has been confirmed to have a very high level of migration to other countries, or to urban areas for the purpose of job seeking. This will reduce the cases of unemployment and improve the standard of living of the country.
In conclusion, due to the increased population, there are no hopes that the current job opportunities are going to cater for the growing population. People should focus on self employment and engage in any other positive activities of generating income.