The Egyptian government has reported a significant decline in the country's unemployment rate. According to Dr. Ahmed Rustom, Minister of Planning and Economic Development, the unemployment rate has decreased from over 13% in 2013 to 6.3% in 2025, and further down to 5.8% in the second quarter of 2026. This improvement is a result of the government's efforts to enhance the labor market and create more job opportunities.
The Egyptian labor market has witnessed a substantial increase in the number of employed individuals, with approximately 33.6 million people currently working. The workforce has also grown to around 35.6 million individuals. Dr. Rustom emphasized that these indicators demonstrate the economy's ability to absorb the influx of labor, but also highlighted the need to focus on improving job quality and productivity.
Despite the positive trends, Dr. Rustom acknowledged that challenges persist, particularly in increasing women's participation in the workforce. The unemployment rate for females stood at 14.4% in the second quarter of 2026, compared to 3.4% for males. The Minister stressed the importance of addressing this issue and promoting equal opportunities for women in the labor market.
The rapid pace of technological advancements and the spread of artificial intelligence have led to a need for restructuring the nature of jobs and required skills. Dr. Rustom noted that the government is working to enhance partnerships with the private sector through the establishment of "sectoral skills councils," which will enable business owners to play a key role in determining training needs and developing curricula.
The government is also focused on building a comprehensive information system for the labor market, in collaboration with local and international partners. This system aims to provide accurate data that will support decision-making and help anticipate future job requirements. Dr. Rustom emphasized that this initiative is crucial in addressing the changing needs of the labor market.
The Minister concluded that the next phase requires not only the creation of more job opportunities but also the development of a labor market that is more adaptable to changes and better aligned with the needs of the economy. The government aims to create a more productive and decent work environment, which will contribute to sustainable development and improved living standards.
Key points
- Egypt's unemployment rate has decreased to 5.8% in the second quarter of 2026.
- The government is working to enhance partnerships with the private sector to address labor market challenges.
- Women's participation in the workforce remains a significant challenge, with an unemployment rate of 14.4% in the second quarter of 2026.
