IMF challenges government unemployment rates in Algeria

The highest in the MENA region

IMF challenges government unemployment rates in Algeria

El Khabar, 17 september 2007

A recent work paper issued by the International Monetary Fund IMF revealed that unemployment rates Algeria, despite curbed, stand to be the highest among MENA region countries.
The FMI report referred the unemployment main causes to the fact that the Algerian labour market still lacks flexibility and adequate regulations as well as suffering from productivity weakness. The report added that the private sector is still unable to fill the gap caused by the disappearance of a lot of bankrupt state-owned companies.
The work paper, entitled “Why has unemployment in Algeria been higher than in the whole MENA and transition countries?,” deemed that lower growth rates in labour productivity in Algeria is associated with higher unemployment, adding that labour market regulations and labour taxation do not motivate the creation of new job opportunities in the country.

17-09-2007
By H. S/ Translated by A. A