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Employment in Algeria - statistics & facts

The labor market in Algeria has improved in the last decade. Compared to the 2000s, the unemployment rate declined significantly and the number of economically active people in the country increased in recent years. Nevertheless, there are still several challenges related to the high levels of labor market segmentation. Moreover, in 2020, the local economy was hit by the coronavirus (COVID-19) crisis, political instability, and the drop in oil prices. This negatively impacted the Algerian job market.

Youth and women face high unemployment

While the overall unemployment rate remained low in the last decade, youth unemployment reached nearly 30 percent in 2019. Young people's employment is a key challenge for Algeria. The country's population has been constantly growing in the last ten years, which is why the new generations represent significant potential for national economic development. The job situation is also critical for women. Even though women are, on average, more educated than men, the female employment rate has been far lower than that of men in recent years. Among other reasons, the gap is mostly due to gender discrimination, lack of skills, and cultural legacies.

Increasing service-orientation

Nearly 60 percent of the labor force in Algeria is employed in the service sector. Most recently, services have represented the country’s leading sector in terms of economic contribution, with the Algerian economy becoming increasingly service-oriented. The recent development of this sector comes with the attempt to diversify an economy that has been heavily reliant on oil and gas. The hydrocarbon industry is particularly capital-intensive and only employs a small portion of the workforce. Therefore, the growing service sector offers further job opportunities for the Algerian population.

An attractive public sector

Similar to other countries in the Middle East and North Africa, the public sector in Algeria tends to be overstaffed. This is particularly true for women, who are mostly employed by the government rather than by private enterprises. This situation is typical of oil-exporting countries such as Algeria, where the state, enriched by oil revenues, is central to the country’s economy. Public sector jobs offer considerably higher wages, which usually do not adapt to current times. This, along with higher levels of job security, makes the public sector particularly attractive to job-seekers.

Interesting statistics

In the following 5 chapters, you will quickly find the 32 most important statistics relating to "Employment in Algeria".

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