Egypt’s unemployment rate is projected to decline steadily over the coming decade, reaching 6.2% by the end of 2025 and 6.0% in 2026, according to Fitch Solutions.
The global credit rating firm expects the rate to fall further to 4.4% by 2034, supported by sustained economic growth and ongoing labour market reforms.
As of the second quarter of 2025, unemployment in Egypt stood at 6.1%, down from 6.3% in Q1, marking the lowest level since 1993. The labour force expanded to about 33.6 million workers, with 223,000 new entrants recorded, according to the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt’s official statistics body.
Historically, unemployment in Egypt has averaged 9.9% between 1993 and 2025, peaking at 13.4% in Q3 2013 before steadily declining in recent years.
A youth-dominated labour market
Egypt’s labour market is heavily populated by young job-seekers, with millions entering the workforce annually. However, the informal sector still employs over 60% of workers, often in roles without contracts, job security, or benefits.
Analysts warn that while falling unemployment rates are positive, they do not necessarily translate into improved job quality or higher living standards.
Drivers of employment growth
Several sectors have played a critical role in absorbing Egypt’s growing labour force. Manufacturing, ICT, tourism, and large-scale infrastructure projects have been particularly significant in creating jobs.
Government reforms aimed at attracting private investment, expanding vocational training, and supporting small and medium-sized enterprises (SMEs) are also expected to bolster formal employment opportunities.
Long-term projections
Fitch Solutions expects Egypt’s unemployment rate to maintain a gradual downward trajectory:
- 6.2% in 2025
- 6.0% in 2026
- 5.8% in 2027
- 5.2% by 2030
- 4.6% in 2033
- 4.4% by 2034
The projection reflects the agency’s expectation that job creation will keep pace with Egypt’s rising population, which is forecast to reach 132.3 million by 2034.
While the outlook is positive, economists caution that deeper structural reforms will be required to shift workers from low-paying informal roles into more secure, productive, and higher-quality employment.
