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The Egyptian EconomyCurrent Challenges and Future Prospects$
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Hanaa Kheir-El-Din

Print publication date: 2008

Print ISBN-13: 9789774161544

Published to Cairo Scholarship Online: September 2011

DOI: 10.5743/cairo/9789774161544.001.0001

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The Impact of Recent Macro and Labor Market Policies on Job Creation in Egypt

The Impact of Recent Macro and Labor Market Policies on Job Creation in Egypt

(p.179) Chapter 6 The Impact of Recent Macro and Labor Market Policies on Job Creation in Egypt
The Egyptian Economy

Hanaa Kheir-El-Din

American University in Cairo Press

This chapter analyzes the impact of recent macroeconomic and labor market policies on job creation in Egypt. The government undertook several reform measures to boost economic growth, increase investments, and raise the competitiveness of the Egyptian economy. However, the Egyptian economy is still suffering from major shortcomings, such as an unfavorable business environment, poor export performance, severe fiscal imbalance, and low levels of investment. In addition, labor market policies have so far been unable to address the mismatch between demand and supply or to resolve other market failures. The impact of active labor market policies and regulations has been limited, reflecting poor policy design and lack of coordination between macroeconomic and labor market policies and regulations. Moreover, macroeconomic and labor market policies were not adequately coordinated to serve the objective of job creation. This chapter states that in order to increase employment, a national employment strategy should be designed with the objective of creating more jobs, especially in those sectors with the highest employment elasticity.

Keywords:   Egyptian economy, labor policy, unemployment, employment, macroeconomic policies, job creation, labor market

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