Sigma Capital

19-05-2025

Egypt’s unemployment rate decreases to 6.3% in Q1 of 2025

Source: MIST

Business Today-


Egypt’s unemployment rate declined slightly to 6.3% in the first quarter of 2025, marking the second consecutive quarter of improvement, according to Central Agency for Public Mobilization (CAPMAS) data. The figure is also down from 6.7% during the same period last year.

The drop comes as the labor force expanded by 1% quarter-on-quarter to reach 33.4 million. This increase was driven by 342,000 people gaining employment, while the number of unemployed individuals fell by 19,000.

Despite the overall improvement, a significant gender gap remains. Male unemployment fell to 3.6%, down from 3.9% last quarter and 4.4% a year earlier. Female unemployment, though slightly improved, remained high at 16.4%.

Young Egyptians continue to be disproportionately affected. People aged 15–29 made up 58.6% of the unemployed population, a notable but still high share, down from 64.6% last quarter.

The rural labor market saw the strongest recovery, with unemployment falling to 3.6% compared to 4.5% in the previous quarter. Urban areas, however, experienced a rise in unemployment to 9.8%, up from 8.9%.

Meanwhile, Egypt’s workforce is showing signs of structural change. The share of salaried employees declined to 69.7%, while self-employment rose to 22%. Participation in family-run businesses slightly decreased to 4%, and business owners saw a marginal increase to 4.3%.

Overall, Egypt’s labor market is stabilizing, with rural areas and self-employment leading the way—though long-standing challenges, particularly for women and youth, continue to shape the employment landscape.