URGENT: Egypt’s unemployment rate hits 6.7% in Q3

Egypt’s unemployment rate rose to 6.7 per cent in the third quarter of 2024, according to the latest data released by official statistics agency CAPMAS and reviewed by Amwal Al Ghad on Thursday. This marks a 0.2 per cent increase from the previous quarter.

Labour Force Growth

The labour force in the third quarter expanded to 32.218 million individuals, marking a 2.5 per cent increase from 31.423 million in the second quarter. Of this total, 14.190 million were employed in urban areas and 18.028 million in rural regions. Men comprised 26.432 million of the labour force, while women represented 5.786 million.

This growth in the labour force was primarily fueled by a rise in employment, with 694,000 more people securing jobs compared to the previous quarter. Despite this, the number of unemployed individuals also rose by 101,000, contributing to a net increase of 795,000 in the total labor force.

Unemployment Overview

The number of unemployed individuals reached 2.159 million, accounting for 6.7 per cent of the total labour force (1.106 million males and 1.053 million females), compared to 2.058 million in the previous quarter, an increase of 101,000 unemployed individuals (4.9 per cent) and a decrease of 104,000 compared to the same quarter last year (4.6 per cent).

Unemployment by Gender

Unemployment rates among males remained stable at 4.2 per cent, while females experienced a higher rate of 18.2 per cent, up from 17.3 per cent in the previous quarter.

Unemployment by Age Group

The highest unemployment rates were observed in the age group of 20-24 years, at 33.6 per cent, while the rate among the 15-19 age group rose to 10.4 per cent.

For the 25-29 age group, unemployment decreased to 21.7 per cent, down from 26.3 per cent in the prior quarter.

Individuals aged 30-64 represented 34.3 per cent of the total unemployed population, a slight decline from 35.8 per cent in the previous quarter.

Urban vs Rural Unemployment

Urban areas saw a slightly higher unemployment rate of 10.1 per cent, compared to 4.0 per cent in rural areas in the third quarter. The rate in rural areas decreased from 5.1 per cent last year, reflecting improvements in the rural job market.

Education Level

In the third quarter of 2024, 84.5 per cent of the unemployed were holders of educational qualifications. This rate increased slightly from 84.1 per cent in the previous quarter and was distributed as follows:

• 15.5 per cent had less than a medium education level, compared to 15.9 per cent in the previous quarter and 17.5 per cent in the same quarter of the previous year.
• 39.9 per cent were holders of intermediate and above-intermediate qualifications, up from 39.3 per cent in the previous quarter and 38.4 per cent in the same quarter last year.
• 44.6 per cent were university graduates and above, slightly down from 44.8 per cent in the previous quarter but higher than 44.0 per cent in the same quarter of the prior year.

Employment Trends

On the employment side, 30.059 million individuals were employed in the third quarter, a 2.4 per cent increase from the previous quarter. Among them, 72.7 per cent were salaried employees, while 19.6 per cent were self-employed individuals working without employees.

Economic Activity Participation

The economic activity participation rate increased to 44.4 per cent, up from 43.4 per cent in the second quarter. The highest participation rate was recorded among individuals aged 40-49 years at 60.1 per cent.

The male participation rate reached 71.1 per cent, up from 69.7 per cent in the prior quarter but marginally lower than 71.2 per cent a year earlier. The female participation rate rose to 16.4 per cent, compared to 15.9 per cent in the previous quarter, though slightly below the 16.7 per cent recorded in the same quarter last year.

The participation rate in economic activity was 44.3 per cent for urban areas and 44.5 per cent for rural areas. This compares to 43.4 per cent in urban areas and 43.5 per cent in rural areas in the previous quarter. In the same quarter last year, the rates were 44.1 per cent for urban areas and 45.0 per cent for rural areas.

The highest participation rate was observed in the 40–49 age group, reaching 60.1 per cent.

Sectoral Employment Breakdown

The agriculture and fishing sector remained the largest employer, with 5.641 million individuals working in the sector, accounting for 18.8 per cent of total employment. Other key sectors included wholesale and retail trade (15.3 per cent), construction (14.1 per cent), manufacturing (13.2 per cent), and transportation and storage (8.9 per cent).

Attribution: CAPMAS emailed statement

Subediting: Y.Yasser