Distribution of employment in Algeria 2010-2019, by sector

In 2019, the majority of the labor force in Algeria was working in the services sector. Since 2010, the services sector employed around 60 percent of the employees in the country. Employment rates by sector remained relatively stable, with the industrial segment attracting approximately 30 percent of the workforce. In 2018, the number of people having 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 2018, oil rents contributed over 15 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 months, secure employment has been more important than ever. According to government sources, at least 500,000 jobs would have been lost in the country in 2020 due to the coronavirus (COVID-19) pandemic.