Arab world has highest unemployment rate in the world

The United Nations Economic and Social Commission for Western Asia (ESCWA) and the Regional Office for the Arab States of the International Labor Organization released a report in which they shed light on the extent of unemployment in the Arab region .

The number of unemployed in the Arab region has reached 14.3 million, marking the highest unemployment rate in the world, especially among women and young people, according to a report released by the United Nations Economic and Social Committee titled ” Towards a Productive and Inclusive Path for All: Creating Job Opportunities in the Arab Region “. For Western Asia (ESCWA) and the Regional Office for Arab States of the International Labor Organization.

The report reveals the reality of the inability of the labor market in the region, especially the formal sector, to create fair and adequate employment opportunities, and shows the high number of workers in the informal sector, who represent around the two-thirds of the total Arab workforce, due to demographic changes, political instability, and declining financial and monetary stability.

gender inequality

ESCWA Executive Secretary Rola Dashti highlighted gender inequality in Arab labor markets, which is particularly evident in the low proportion of female entrepreneurs and the shortage of managerial positions they generally hold. .

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She said: “Every crisis creates an opportunity. Therefore, the current challenges must be overcome and move forward better in ensuring that future Arab labor markets provide prosperity to their younger generations, protect their people from poverty and reduce inequalities.

She underlined the need to address prevailing socio-cultural and discriminatory perceptions in order to improve the ability of working women to navigate their careers and benefit from their advanced level of education.

Impact of the pandemic on the labor market

Ruba Jaradat, Regional Director for Arab States at the International Labor Organization, explained that the Covid-19 pandemic has highlighted the need to address the labor market gaps that existed in the region before the pandemic, especially those that affect the most vulnerable and marginalized workers.

“The impact of the crisis has been particularly devastating on young people, people with disabilities, women, informal sector workers, migrants and refugees,” she said.

She stressed the importance of developing a practical roadmap to promote a people-centered recovery and to build a better future that ensures economic security, equality of opportunity and social justice.

According to the report, the number of people working in sectors identified as most vulnerable to risks, such as industry, hospitality, real estate, commercial and administrative activities, is 39.8 million people who are facing the risk of dismissal or reduction in pay and / or working hours due to the pandemic.

Conflict is a major obstacle

In addition, conflicts and political unrest in the region have been a major obstacle to the performance of companies, especially since they affect the confidence of investors and consumers alike, and consequently limit investment and consumption.

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The report provides guidance for policymakers to help create sustainable jobs, especially in the formal sector, and make this sector a major engine of economic growth and the creation of decent jobs in the region.

“With the right mix of policies, the right coordination frameworks and the active participation of worker and employer representatives, we can ensure a successful recovery and an effective transition to a more inclusive future of work,” said Ruba Jaradat.