Egypt's unemployment rate has continued to decline, reaching 5.8% in the second quarter of 2026, according to Minister of Planning and Economic Development, Dr. Ahmed Rustom. This marks a significant improvement from 13% in 2013 and 6.3% in 2025. The minister emphasized that the labor market is a key channel for achieving sustainable development, and that economic growth must translate into increased employment and improved living standards.
Dr. Rustom highlighted that the global unemployment rate stood at 4.9% in 2025, while in North Africa it was 9.9%, and in Arab countries, it was 9.5%. However, the youth unemployment rate (15-24 years) was significantly higher, at 12.4% globally, 22.6% in North Africa, and 26.2% in Arab countries. These figures underscore the challenges facing these countries in creating job opportunities and addressing the gap between education and labor market requirements.
The Egyptian labor market has shown positive trends, with the workforce increasing to 35.6 million individuals and the number of employed people reaching 33.6 million. Dr. Rustom stressed that the focus is shifting from the quantity of jobs to their quality, productivity, and alignment with modern sector requirements. He also emphasized the need to address the low participation of women in the economy, with a female unemployment rate of 14.4% in Q2 2026, compared to 3.4% for males.
The minister noted that rapid technological advancements, artificial intelligence, and the green transition require a restructuring of job natures and required skills. To address these challenges, the government is promoting partnerships with the private sector through the establishment of sectoral skills councils. These councils will enable business owners to play a key role in determining training needs and developing curricula and education systems.
The government is also working to build a comprehensive information system for the labor market, in collaboration with local and international partners, to provide accurate data that supports decision-making and helps anticipate future job requirements. Dr. Rustom emphasized that the next phase requires not only providing more job opportunities but also creating a labor market that is more adaptable to changes and better connected to the economy.
The minister highlighted the importance of addressing the challenges facing the labor market, including the need to improve job quality, increase productivity, and align skills with modern sector requirements. He also stressed the need for a more comprehensive approach to addressing unemployment, including promoting economic growth, improving education and training, and increasing opportunities for women and young people.
The decline in unemployment rate is a positive indicator for the Egyptian economy, but the government still faces significant challenges in addressing the labor market's needs and improving job quality. The focus on quality jobs and addressing the skills gap will be crucial in sustaining economic growth and improving living standards for Egyptians.
Key points
- Egypt's unemployment rate declined to 5.8% in Q2 2026, with a focus on improving job quality and addressing challenges in the labor market.
- The government is promoting partnerships with the private sector to address labor market challenges and improve job quality.
- The focus is shifting from the quantity of jobs to their quality, productivity, and alignment with modern sector requirements.
