Egypt’s unemployment rate dropped to 6.1% in the second quarter of 2025, according to new data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) its lowest level in years and a signal of gradual recovery in the labor market.
The report credits growth in key sectors such as construction, manufacturing, tourism, and renewable energy for creating fresh job opportunities, particularly for young workers and women. Government-led infrastructure projects, alongside a surge in foreign investment, have also been cited as major drivers of the improvement.
Economists say the figures reflect both seasonal hiring patterns and sustained economic reforms, though challenges remain in ensuring job quality and stability. “This is encouraging progress, but Egypt must continue to focus on high-skilled employment and private sector expansion to maintain this momentum,” noted economic analyst Hany El-Sayed.
While the urban jobless rate saw a sharper decline, rural areas also experienced gains, aided by agricultural development programs and small enterprise funding. CAPMAS emphasized that vocational training initiatives and youth employment schemes have played a role in bridging the gap between skills and market demands.
With inflationary pressures still weighing on household incomes, experts warn that low unemployment figures alone do not guarantee improved living standards. However, the latest numbers provide a much-needed boost to Egypt’s economic outlook as the government pushes for sustained growth through 2026.
