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Experts focus on education reform as unemployment falls

While the latest figures show that unemployment in Egypt fell to 9.1 percent in the first quarter of 2010, concerns persist over the long-term effects of the financial crisis on the labor market and the government's role in job creation.
Unemployment had stabilized at 9.4 percent in the last three quarters of 2009, according to the CAPMASCAPMAS, rising from a low of 8.4 percent in the second quarter of 2008 as a result of the global and domestic economic slowdown.
According to renowned economist Samir Radwan, in an International Labor Organization report titled "Economic and Social Impact of the Financial and Economic Crisis on Egypt," the labor market is strongly linked to the effects of the crisis.
"The prolonged labor market recession and the consequent social deterioration are the most serious aspects of the global financial and economic crisis as it reflects on Egypt," writes Radwan.
"The labor market outcome of the crisis has been uneven as it affects certain groups disproportionately -- notably women, youth and migrant workers, and a higher incidence for urban workers," Radwan adds.
CAPMASCAPMAS numbers confirm Radwan's analysis as around 76 percent of the unemployed were in the 15-25 age bracket, with 92 percent of the unemployed being holders of medium and high level graduate degrees.
The Economist Intelligence Unit (EIU) Country Report for May 2010 states that the slowdown will cause unemployment to remain high but decrease slightly in the current year.

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