SHARM EL-SHEIKH-Youth and women unemployment in the Arab world have respectively exceeded 35 and 43 per cent, according to the assessment presented by the Director of the International Labor Organization (ILO) in Cairo YousefQaryouti during the ILO’s conference held in Sharm el-Sheikh this week.
On Tuesday 23 Arab and foreign countries attended the first of a three-days conference focused on the management of the Arab labor market.
“The world is facing some great challenges,” said the Director of the Arab Labor Organization Ahmed Luqman. “Above all, the increasing rate of growth in the labor force in the Arab word due to its high population growth rate overexceeding 2.4 per cent per year.”
The world population growth rate is just about 1.6 per cent, as women play a very active role as labor force.On the contrary, the labor market in the Arab region is not competitive and dynamic lessbecause of the lowest rate of employed women in the world –there is normally only an employed person in a four-member family.
According to Luqman, most of the labor force has a basic education and mostlydeals with farmingor office work. Hence, the lack of technical and specialized labor evidently creates a gapwithin the composition of the labor force itself.
Exacerbating the problem of the already overstaffed state-run institutions, Qaryoutimentioned that an Egyptian ministryhired 95 thousand employees at once in the aftermath of the 2011 revolution, in order to diminish the high rate of unemployment. This move only worsened the grave economic situation in a country where the wages and theproductivityhave been very lowsince at least a decade.
The Egyptian Minister of Manpower and Immigration Kamal Abu Eita said thatto apply the idea of corporate governance some incentives for transparent, productive, and law-abiding companies are needed.
Such incentives would safeguard the company’s shareholders and itsstaff and would lead to a significant flow of investmentswith an ultimate positive result in the national economy and labor market.