The Banking Executive Magazine - January 2022 Issue

THE LABOR MARKET IN EGYPT AND ITS INFLUENCE ON THE EGYPTIAN ECONOMY The primary key element of any economy in the world is based on the force of its labor markets. Egypt became a center of view for investors and an important digital network among its viewers. Giza and Cairo is located on the border of Nile River in North Africa, from long time, Egyptians crafted the history of the famous Pharaoh civilization and cul- tures. They showed a tremendous energy of its labor force, and dedica- tion in achieving an accurate work by building pyramids and a 3000 years of developed civilization, where the water is the essential re- source of human labours to exercise their tasks in agricultural, industrial, and construction activities. Egypt's economy depends on agri- culture, petroleum, natural gas, media and tourism; there are also more than three million Egyptians working abroad. A rapidly growing population continue to overtax re- sources and stress the economy. Cairo accounts for 11% of Egypt's population and 22% of its economy (PPP), where the majority of the na- tion's commerce is generated (Real estate, universities, hospitals, hotels, media center and film studios). Government has invested also in communications and infrastructure. Egypt produces its own energy based on coal, oil, natural gas and hydro power, and it has been a net oil and natural gas importer since 2008. Al- though one of the main obstacles still facing the Egyp-tian economy is the limited wealth to the average popu- lation, higher prices of basic goods, while standards of living or purchas- ing power remains poor. Egypt’s labor market comprises of 28.9 million people (26.6 million employed and 2.3 mil-lion unem- ployed). Density is considerably very high and concentrated in Cairo which is 3250 habitat per Km2. Un- employment witnessed four periods of economic recessions and down- turn in supply and demand on its labor. And recently, in 2019, the pan- demic crisis of Corona Virus slowed down the economy and had a direct impact on the labor market. In the other hand, the pandemic has led to a shift to a new labor era, such as working remotely, creating entrepre- neurs, and adopting new technolo- gies. But, Egypt and other Arab countries was not ready to make this labor shift and economic adjustment in order to adjust with the pandemic; while other developed nations was able to maintain the economy and the BANKING EXECUTIVE 38 ISSUE 157 JANUARY 2022 BY S.A.MANSOUR