In its annual report, ALO stresses increased unemployment in the Arab states
Regional, Economics, 4/7/1999

The annual report released by the Arab Labor Organization stressed that the volume of the Arab labor force this year reached 86.5 million and the number will reach 123 million in the year 2010.

The report, in particular, noted the decline of youths' average contributions to economic activity, noting that those who ask for jobs whose age ranges from 15 to 24 are 49 million. (unemployment represent 53% of those under the age of 20)

The report said that this figure puts great pressure on the Arab labor market, and the situation necessitates the creation of 2.5 million new jobs per year and this figure will increase to 3 million in the next decade in order to be able to contain the unemployment rates.

But the report indicated that women's involvement in economic activity is increasing due to a quantitative increase in education, equal job opportunities for both men and women and the development of the common awareness on the need for women's participation in ensuring the increased economic demands of the family.

On the role of the government in recruiting the labor force, the report said the government is the main recruiter of the labor force in the Arab states. It added that data taken from seven Arab states, Algeria, Kuwait, Bahrain, Morocco, Tunisia, Egypt and Jordan revealed that the government recruited 27% of the total labor force at the beginning of this decade and that Jordan records the highest figures and Morocco the lowest at 18%.

Therefore, the report said, the public sector (the government and public projects) is the largest recruiter of females.

The report on the other hand noted the bill for wages in the public sector increased in comparison to current revenues. It represented in 1993 in Tunisia 24.2%, Algeria 49%, Morocco 44.7%, Egypt 21.7 %, Jordan 61.6% and in Bahrain 31.1%. This general average wages represents 11.7% of the GNP of the seven Arab states, and this bill was among the justifications for economic reforms. The report also indicated that the unorganised sector prefers males rather than females to have been recruited at a rate ranging from one to 10.

The report asserted that indicators stressed the increase in unemployment rates in the Arab states. The increase in unemployment average reached 14%, a percentage which reveals that there are some 12 million unemployed in the Arab states.

The report indicated that reasons behind the increase in unemployment are attributed to the failure of development, of giving care to the social aspects, the bad economic performance manifested in the humble growth average, ill matching between education and training and the requirements of the labor market, the failure to create an investment climate, the lack of laws to boost investment and a low local investment average.

The report stressed that the unemployment rates do not only indicate conditions of the labor force but also represent the criteria for the government's performance, the safe development policy, ensuring social safety, and achieving fairness in distribution of wealth and eliminating poverty, matters which are of traditional controversy in the Arab states.

The report confirmed that unemployment rates reach frightening numbers in the West Bank and Gaza estimated at 47% at closure times (when Israel blocks the road for the Palestinians to work inside Israel) and reach in certain Arab countries to 25%.

The unemployment rate, is 21% in Yemen, 17% in Algeria, 19% in Sudan, according to the report of the World Bank for 1994. According to the said report unemployment is 15% in Lebanon and Morocco, 12 % in Tunisia, and 9% in Egypt. The lowest unemployment rate is recorded in Syria estimated at 8%.

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