|
The Egyptian Labor Force
A major impediment to private sector development is the lack of
adequately qualified human resources, both at the working and managerial
levels. In addition, generally poor economic performance has not
enabled the country to create the job opportunities required to
absorb the increasing number of new entrants into the labor market.
Studies undertaken in a number of countries reveal that lower unemployment
rates prevail when rigidities pertaining to the hiring and firing
of employees are removed. A flexible labor market attracts investors.
Certain features of the Egyptian labor market need to be modified
if economic reform and growth is to be attained. In particular,
labor laws ensuring life-time job security for employees, policies
guaranteeing employment for all graduates through the centralized
manpower allocation system, centralized wage-setting rules for public
enterprise workers, as well as other practices leading to differential
treatment of public and private sector workers need to be abolished
or reformed.
This paper examines Egypt's labor force and reviews recent trends
in Egyptian labor practices and their implications for the labor
market.
- Part 1 provides an overview of
the structure of the Egyptian labor force. Employment sector wages
and labor practices are reviewed and labor-force resources discussed.
- Part 2 examines the basic features
of the labor market in terms of labor-force growth, participation
rates and sectoral distribution. Obstacles to efficiency in the
labor market are discussed and privatization labor issues are
highlighted.
- Part 3 analyzes the key laws
affecting the labor force and labor practices in Egypt. Law 137
of 1981 and labor law reform are given special attention.
- Part 4 provides recommendations
for encouraging labor practices in line with economic reform.
The appendix includes a comprehensive survey of personnel policies
and salary levels in Egypt.
Top | 
