Potential Sectors for Greater Employment Generation in the MENA Region: The Case of Tunisia and Egypt
Date
2022-08
Authors
Zaki, Chahir
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Abstract
Egypt and Tunisia share several similar characteristics, given that they are highly
dependent on services, have a relatively diversified manufacturing sector, and did
relatively well at the macroeconomic level. Yet, while their economies grew thanks
to stabilization policies, employment outcomes did not cope with such growth,
referring to the so-called jobless growth. Thus, the objective of this paper is twofold:
first, it presents the structural problems of Egypt and Tunisia related to growth and
employment and explains why growth has been jobless; second, analyse which
sectors can generate more jobs. The main findings show that the manufacturing
sector has a great potential to generate more jobs. Yet, deep reforms to make the
industrial sector more competitive are needed. This includes improving the skills of
blue collars, enhancing the quality of institutions (especially economic ones), and
increasing foreign direct investments in the manufacturing sector.