This short paper concentrates on employment and unemployment issues in Algeria. In a first part, the economic context is presented, from an historical perspective. It underlines that the country’s economy relies excessively on hydrocarbons, which contributes to large economic distortions and has negative impacts on the creation of stable jobs in productive sectors. The second part analyses the labor supply and demand, and the intermediation role of ANEM, the National Employment Agency. Considering labor markets, there is a lack of reliable statistics, the scope and the quality of data on labor supply and demand must definitely be improved. In particular, there is a strong need for a better assessment of the importance of the informal sector, including so-called work at home. Available statistics underline the vulnerability of young generations and women. The role of ANEM is important; however, its performances could still be improved. The third part overviews the roles and impacts of development programs and key-institutions involved in job creation. Here also, improvements are needed. In addition, there is a need for better data and adequate methodology to assess the performance of these institutions.
Table of Contents
- Introduction
- Economic Context
- Voluntarism and Economic Development
- First oil shock, debts and adjustments
- High energy prices and energy rents
- Evolution of employment and unemployment in Algeria
- Supply of labor
- Demand for labor
- The intermediation role of ANEM
- Labor market flexibility
- Employment policies and related institutions
- Macroeconomic programs
- SMEs promotion institutions
- Evaluating and comparing actions
- Final remarks
Objectives and Key Themes
This paper examines employment and unemployment challenges in Algeria, focusing on the historical economic context, labor market dynamics, and the impact of government policies. The analysis aims to highlight the country's dependence on hydrocarbons, the role of institutions like ANEM, and the need for improved data and methodology to assess employment programs effectively.- The impact of hydrocarbon dependence on the Algerian economy and employment.
- Analysis of labor supply and demand in Algeria, including the role of the informal sector.
- Evaluation of the effectiveness of Algerian employment policies and institutions.
- The challenges posed by youth unemployment and the vulnerability of women in the labor market.
- The need for improved data and methodology to better understand and address employment issues.
Chapter Summaries
Introduction: This introduction sets the stage for the paper by outlining the significant economic shifts Algeria has experienced since its independence in 1962. It highlights the dramatic impact of the 1986 oil shock, the subsequent period of economic hardship, and the subsequent improvement thanks to higher energy prices. However, it emphasizes that despite economic growth, Algeria still faces significant social and economic challenges, including over-reliance on hydrocarbons, a less-than-conducive business environment, high youth unemployment, growing income inequality, and issues with corruption and governance. The paper will address specific employment and unemployment issues, focusing on economic context, labor supply and demand, the role of the ANEM (National Employment Agency), and related agencies and policies. 1. Economic Context: This chapter provides a historical overview of the Algerian economy, starting from its colonial past. It discusses the post-independence prioritization of central planning and state involvement in the economy. The chapter explains how the initial focus on labor-intensive industries shifted towards a reliance on oil and gas revenues, leading to significant distortions and impacting job creation in other productive sectors. The chapter also covers the profound effects of the 1986 oil shock and subsequent IMF-mandated adjustments, which caused a period of high unemployment, poverty, and insecurity. Finally, it shows how higher energy prices after 2000 improved the economic situation, leading to greater government spending on development. 2. Evolution of employment and unemployment in Algeria: This chapter delves into the specifics of labor supply and demand in Algeria. It acknowledges the lack of reliable statistics, particularly concerning the informal sector, which hampers a complete understanding of the labor market. The chapter highlights the vulnerability of young people and women and examines the role of ANEM (the National Employment Agency) in mediating the labor market, suggesting that its performance could be improved. The analysis underscores the need for better data collection and analysis to accurately assess the situation. 3. Employment policies and related institutions: This chapter assesses the various employment policies and institutions that aim to stimulate job creation in Algeria. It examines macroeconomic programs, institutions supporting small and medium-sized enterprises (SMEs), and methods for evaluating the efficacy of these initiatives. A recurring theme is the need for improvements in both the design and the evaluation of these policies, as well as improved data collection and methodology for accurate assessment.Keywords
Algeria, employment, unemployment, hydrocarbon dependence, labor market, ANEM, economic development, youth unemployment, informal sector, economic policies, SME development, data limitations.
Frequently Asked Questions: Employment and Unemployment in Algeria
What is the main focus of this paper?
This paper examines the challenges of employment and unemployment in Algeria. It analyzes the historical economic context, labor market dynamics, and the impact of government policies. A key focus is on Algeria's dependence on hydrocarbons, the role of institutions like the National Employment Agency (ANEM), and the need for improved data and methodology for assessing employment programs.
What are the key themes explored in the paper?
The key themes include the impact of hydrocarbon dependence on the Algerian economy and employment; analysis of labor supply and demand, including the informal sector; evaluation of the effectiveness of Algerian employment policies and institutions; challenges posed by youth unemployment and the vulnerability of women in the labor market; and the need for improved data and methodology to understand and address employment issues.
What is the historical economic context discussed in the paper?
The paper discusses Algeria's economic history since independence in 1962, including the shift from central planning to hydrocarbon dependence. It details the significant impact of the 1986 oil shock and subsequent economic adjustments, as well as the positive effects of higher energy prices after 2000. The challenges of a less-than-conducive business environment, high youth unemployment, growing income inequality, and issues with corruption and governance are also highlighted.
What is the role of ANEM (National Employment Agency) in the Algerian labor market?
The paper examines ANEM's role in mediating the Algerian labor market. While acknowledging its importance, it also suggests that its performance could be improved, and highlights the need for better data collection and analysis to accurately assess its impact.
What are the main findings regarding employment policies and institutions in Algeria?
The paper assesses various employment policies and institutions aimed at stimulating job creation, including macroeconomic programs and support for SMEs. It emphasizes the need for improvements in the design and evaluation of these policies, along with better data collection and methodology.
What are the key challenges related to employment and unemployment in Algeria?
Key challenges include Algeria's dependence on hydrocarbons, the significant size of the informal sector, high youth unemployment, the vulnerability of women in the labor market, and a lack of reliable labor market statistics.
What are the recommendations for addressing employment and unemployment challenges in Algeria?
The paper implicitly recommends improved data collection and methodology, better designed and evaluated employment policies, stronger support for SMEs, and a reduction in reliance on the hydrocarbon sector for economic growth and employment creation.
What are the chapter summaries provided in the paper?
The paper provides summaries for an Introduction, a chapter on the Economic Context, a chapter on the Evolution of Employment and Unemployment in Algeria, and a chapter on Employment Policies and Related Institutions. These summaries give an overview of the key arguments and findings of each chapter.
What are the keywords associated with the paper?
The keywords include: Algeria, employment, unemployment, hydrocarbon dependence, labor market, ANEM, economic development, youth unemployment, informal sector, economic policies, SME development, and data limitations.
- Quote paper
- Daniel Linotte (Author), Khaled Menna (Author), 2012, Employment and Unemployment Issues in Algeria, Munich, GRIN Verlag, https://www.grin.com/document/203741
