Egypt’s industrial policies discourage employment: World Bank

Egypt’s labour laws and industrial policies discourage employment by raising the costs of labour and artificially reducing the price of non-labour inputs and directly encouraging the production of non labour-intensive products by tariffs and other policies, a recent World Bank study stated. The low-quality, insecure and unstable jobs can be reversed through adopting reforms aimed at reviving the private sector, promoting formal employment and engaging vulnerable population, the World Bank said in a press statement on 18 September. World Bank’s country director for Egypt, Yemen and Djibouti Hartwig Schafer said that the private sector has the potential to provide Egyptian youth with the needed job opportunities, stressing that the international organisation is committed to supporting Egyptians ‘in improving their livelihood to participate in prosperity and growth’. The statement added that jobs in Egypt have become less likely offer social insurance or a written contract over the past 15 years, creating higher informal employment status despite the high level of educational attainment of young people, according to dailynewsegypt.com