Egypt’s unemployment falls to 5.8% in Q2 as focus shifts to job quality – minister

Egypt’s unemployment rate fell to 5.8 per cent in the second quarter of 2026, as the government shifts its focus from job creation to improving employment quality, productivity, and workforce skills, its planning minister said Monday.

The labour force reached about 35.6 million people in the second quarter, while the number of employed people rose to around 33.6 million, Minister Ahmed Rostom said in remarks delivered at the opening of the National Planning Institute’s 10th annual international conference.

Mona Essam, assistant minister of planning and economic development for sustainable development, delivered Rostom’s remarks at the conference, saying that the indicators reflected the economy’s ability to absorb new entrants into the labour force.

Egypt’s unemployment rate has fallen from more than 13 per cent in 2013 to 6.3 per cent in 2025 and 5.8 per cent in the second quarter of 2026, according to data cited by the ministry.

“Those indicators reflect the economy’s ability to absorb new entrants into the labour force. The challenge is no longer limited to the quantitative dimension, but is increasingly focused on improving the quality of job opportunities, raising productivity, and aligning skills with the modern requirements of productive sectors,” Rostom said.

Female unemployment stood at 14.4 per cent in the second quarter, compared with 3.4 per cent among men, the minister said, highlighting the need to increase women’s participation in economic activity.

Rapid technological advances, including the spread of artificial intelligence and the transition to a green economy, are also reshaping the types of jobs and skills required by employers, he added.

The government plans to strengthen cooperation with the private sector through sectoral skills councils, giving employers a greater role in identifying training needs and developing curricula and education systems, Rostom said.

Egypt also plans to establish an integrated labour-market information system with local and international partners to provide more accurate data for policymaking and help anticipate future employment needs.

The next phase should focus not only on creating more jobs but also on building a labour market that can adapt to economic and technological changes, respond more closely to the needs of the economy, and provide productive and decent employment, he said.

Global unemployment stood at 4.9 per cent in 2025, compared with 9.9 per cent in North Africa, and 9.5 per cent in Arab countries, while youth unemployment among those aged 15 to 24 was 12.4 per cent globally, 22.6 per cent in North Africa and 26.2 per cent in Arab countries, according to figures cited at the conference.