Egypt Unemployment Rate Falls to 6.4%
With improvement in private sector activities, Egypt’s unemployment rate fell to 6.4% in the fourth quarter of 2024. Joblessness decline by 30 basis points from 6.7% in the previous three-month period.
According to data released by the statistics office, the latest reading was the lowest rate on record, as the number of unemployed individuals decreased by 29,000 (-1.3%) to 2.13 million, while employment rose by 935,000 (+3.1%) to an all-time high of 30.99 million.
Unemployment among men declined to 3.9% in Q4 from 4.2% in Q3, while the rate for women dropped to 16.6% from 18.2%. Finally, youth unemployment (ages 15-29) accounted for 64.6% of the unemployed population, slightly lower than 65.7% in Q3 2024.
Recently, Fitch forecasts GDP growth picks up from 2.4% in FY24 to 4% in FY25 on strengthening confidence, real incomes, remittances and foreign direct investment, and to 5.3% in FY26, moderately above Egypt’s trend rate.
Analysts said deeper structural reform, including against IMF extended fund facility (EFF) measures to enhance private sector activity and competitiveness, is key to lift sustainable growth and avoid renewed build-up of external imbalances in the medium term.
Fitch considers the current administration, which is somewhat more technocratic than the recent past, remains broadly committed to the EFF, despite its newly-stated intent to renegotiate some targets.
Analysts forecasts inflation to slow down to 12.5% at end-FY25, supported by large base effects, better-anchored expectations and broad currency stability, and 10.6% at end-FY26. #Egypt Unemployment Rate Falls to 6.4%#
