In 2019, the majority of the labor force in Algeria was working in the services sector. Since 2010, the services sector has employed around 60 percent of the employees in the country. Employment rates by sector remained relatively stable in the period under review, with the industrial segment attracting approximately 30 percent of the workforce. In 2018, individuals with a job in the agriculture sector decreased to under 10 percent of the entire working population in Algeria.
Oil and gas industry does not generate employment
The Algerian economy is characterized by the prevalence of the secondary and tertiary sectors. In particular, the large industrial sector is dependent on oil and gas resources. Algeria is a member of the OPEC and its economy relies heavily on hydrocarbon production and trade. In 2019, oil rents contributed around 10 percent to the GDP. Nevertheless, the oil and gas industry does not require an extensive labor force, which is why the largest share of the working population is employed in services. Moreover, the country’s service sector has been growing in recent years, contributing to economic diversification.
A challenging labor market
The labor force in Algeria faces widespread unemployment. Specifically, finding a job is difficult for youth and women. In 2020, the youth unemployment rate was nearly 30 percent, while 20 percent of the female labor force was not employed. The highly educated population also represented the largest share of unemployed. Furthermore, high levels of informal employment in the country are a relevant concern for the labor market. Informality does not provide job security and even threatens the functioning of the formal sector. In recent times, secure employment has been more important than ever. According to government sources, at least 500,000 jobs have been lost in the country in 2020 due to the coronavirus (COVID-19) pandemic.
Distribution of employment in Algeria from 2010 to 2019, by sector
Figures are estimates.
Figures have been rounded. This may result in percentages slightly over or below 100.
According to the source, employment refers to the "persons of working age who were engaged in any activity to produce goods or provide services for pay or profit, whether at work during the reference period or not at work due to temporary absence from a job, or to working-time arrangement."
The service sector includes "wholesale and retail trade and restaurants and hotels; transport, storage, and communications; financing, insurance, real estate, and business services; and community, social, and personal services".
The agriculture sector includes "agriculture, hunting, forestry and fishing".
The industry sector encompasses "mining and quarrying, manufacturing, construction, and public utilities".
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World Bank. (May 25, 2022). Distribution of employment in Algeria from 2010 to 2019, by sector [Graph]. In Statista. Retrieved December 08, 2023, from https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/
World Bank. "Distribution of employment in Algeria from 2010 to 2019, by sector ." Chart. May 25, 2022. Statista. Accessed December 08, 2023. https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/
World Bank. (2022). Distribution of employment in Algeria from 2010 to 2019, by sector . Statista. Statista Inc.. Accessed: December 08, 2023. https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/
World Bank. "Distribution of Employment in Algeria from 2010 to 2019, by Sector ." Statista, Statista Inc., 25 May 2022, https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/
World Bank, Distribution of employment in Algeria from 2010 to 2019, by sector Statista, https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/ (last visited December 08, 2023)
Distribution of employment in Algeria from 2010 to 2019, by sector [Graph], World Bank, May 25, 2022. [Online]. Available: https://www.statista.com/statistics/1178481/employment-in-algeria-by-sector/