This study analyses the integration of young people into the labor market in six countries of
the Maghreb and the Middle East (Algeria, Egypt, Jordan, Libya, Morocco and Tunisia) in the
context of the Arab uprising.
As part of that work, a literature review was prepared containing all the publications that
cover the subject in the target countries. On this basis, a bibliographic database was created
and recommendations were drawn on studies that could be conducted to fill literature gaps.
An analysis of the labour market active policies and mechanisms set up by different countries
to improve youth employment was performed based on existing information. A list of best
practices from each mechanism has been developed in order to achieve an overview of what
could be achieved in these countries on the field of active employment policies. This study
analyses the various socioeconomic factors of integrating young people into the labor market
such as gender, family background, social and human capital, economic structure at micro and
macro level.
Despite a relatively good economic growth in the six countries concerned, the job creation
rhythm was not able to fulfill the social demand. Meanwhile, in many countries there is a
reduction in employment in the public sector. For illustration, in Algeria, employment in the
public sector increased from 56% at the end of the 80s to 28% in 2010. The difference
between the slow rate of job creation and the number of young people seeking employment
causes a tendency among young people to migrate that becomes a social problem.
The link between education and integration into the labor market is developed in this study in
the focal area of the role of human capital. It is noticeable that a major obstacle to the
integration of young people into the labor market is the mismatch between the skills of
graduates and demands. The present study showed that the graduate by fields of study is not
best suited to the economic structure.
Access to information for young people in the labor market is also a key determinant of youth
employment. Developed knowledge of the labor market, wages and working conditions are
necessary for the better functioning of the labor market. The study analyses the development
and mechanisms set up in order to produce more information through the national agencies in
charge of employment. The study highlights that the success of these systems is
disappointingly low when considering the proportion of young people using these services.
While the level of education is no longer a factor in finding a job, the role of social capital
becomes important. Personal connections with family, friends, professional or social networks
are methods that can be activated to seek employment.
As part of this analysis of the job market, a development perspective in economic activity,
particularly in terms of entrepreneurship should also be addressed. Development of economic activity is necessarily connected a regulatory environment stable, transparent and incentive.
To date, several states, such as Morocco and Egypt undertook reforms that have led to a clear
improvement in the economic environment. Others, such as Algeria and Libya, have
accumulated a significant backlog in the region.
Facilitation of procedures for starting a business, representing a central element of improving
the business climate in a country is under reforms. We can quote the Regional Best Practice in
Morocco, "Guichet unique à la creation d‟entreprise," that became fully operational in 2011.
In Egypt, a reform concerning property registration has reduced the total cost of registration
of more than 80%. This has had the effect of generating a bulk of confidence in the field of
entrepreneurship and increased revenues by 39%. In addition to the overly complex
procedures, the minimum capital requirement is one of the obstacles to business creation.
Between 2006 and 2008, Morocco has divided by more than 50 % the minimum capital
contributed to the creation of a business. The number of new companies registered at the
national level has increased by 23%.
An analysis of the integration of young people into the labor market must necessarily included
a statement of the existing social protection systems in these countries. Based on the literature
review that was conducted, it is clear that very few publications have been published on this
subject. It is therefore difficult to achieve a true comparative study between the different
social security systems in those countries. Some systems of social protection and pension
systems set up over the past decade have been listed. However, few states have implemented a
national policy and coherence of social security, including social insurance and services. Only
Algeria has developed an unemployment insurance fund, the NACC and it is estimated that
only 11.4% of young people who have a job contributing to the Social Security Fund and only
9.7% have health insurance.
All the factors mentioned above, added to the lack of action by states identified in this study
inevitably leads to the following conclusion: many young people change into the informal
sector. In Algeria, it is estimated that the informal sector in the non-agricultural private sector
represent 37% of employment. The lack of data and economic studies on the subject hinders
the identification of the country-specific and adapted policies.
Different mechanisms put in place for each country to facilitate the integration of young
people into the labor market are also developed. It was found that the developed mechanisms
are focus on the intermediation function. The ministry, under whose deals with the labor
market, has either a national agency (National Agency for Employment and Independent
Work for Tunisia National Agency for the Promotion of Employment and Skills for Morocco,
National Agency for Employment for Algeria) or offices directly under its authority. Agencies
or offices may, from case to case, manage the entire claims management and employment
opportunities; disseminate knowledge on the private sector.
However, there is a lack of coordination between all these national agencies and the role of
departments is not well-defined, some agencies are inefficient.