ESCWA: Arab region has highest unemployment rate in the world

The Arab region has the highest levels of unemployment in the world, especially among women and young people, with 14.3 million individuals already unemployed prior to the COVID-19 pandemic, a report issued today by the UN Economic and Social Commission for Western Asia (ESCWA) and the International Labour Organization (ILO) Regional Office for Arab States has revealed.

Entitled “Towards a Productive and Inclusive Path: Job Creation in the Arab Region”, the report highlights the high levels of informal employment in the region, amounting to about two thirds of total employment and resulting from demographic shifts, political instability and low levels of fiscal and monetary stability.

ESCWA Executive Secretary Rola Dashti stressed the lack of gender equality in Arab labour markets, illustrated by women’s lower shares as business owners and the few top management positions they hold.

“We must challenge gender-discriminatory perceptions in labour markets so that women can evolve in their careers and capitalize on their increased levels of education,” she said.

For her part, ILO Regional Director for Arab States Ruba Jaradat stressed how the COVID-19 pandemic has highlighted the need to address pre-existing labour market deficits in the region, especially those affecting the most vulnerable workers.

Report: Hundreds of Yemenis lose jobs in Saudi Arabia for unknown reasons

“The impact of the crisis has been particularly devastating for youth, persons with disabilities, women, informal workers, migrants and refugees. It is fundamentally important that we develop an action-oriented roadmap to advance a human-centred recovery, and construct a better future that delivers economic security, equal opportunity and social justice,” she stressed.

The report identified several sectors that were hit hard by the pandemic in the region, such as manufacturing, accommodation, real estate and business and administrative activities, in which 39.8 million individuals are under the threat of losing their jobs or a reduction of wages and/or hours of work.

Moreover, the report found that training systems and educational curricula are not in line with the needs of the labour market, leading to a significant skill mismatch. In fact, 40 per cent of business owners claim that the inadequately educated workforce is an obstacle in the region.

Meanwhile, political unrest and conflicts remain a primary obstacle in the region impairing enterprise performance, affecting investor and consumer confidence and subsequently limiting investment and consumption.