联合国西亚经济社会委员会-走向富有成效和包容性的道路：在阿拉伯区域创造就业机会（英）-2021_93页_3mb

Summary of "Towards a Productive and Inclusive Path: Job Creation in the Arab Region"

Core Content

This report, produced by the Economic and Social Commission for Western Asia (ESCWA) in collaboration with the International Labour Organization (ILO), examines the challenges and opportunities for job creation in the Arab region. It highlights the structural issues that have limited the ability of the region to generate sufficient and decent employment, especially in the formal private sector, and proposes policy measures to address these challenges in the context of the ongoing impact of the COVID-19 pandemic.

Main Viewpoints

• High Unemployment Rates: The Arab region has the world's highest unemployment rates, particularly among youth and women. Before the pandemic, more than 14 million individuals were jobless, and the crisis has further increased the risk of job loss, with nearly one third of the employed population at risk.

• Informal Employment Dominance: Over 64% of employment in the Arab region is informal, characterized by poor working conditions and limited job stability. This has hindered structural transformation and economic diversification.

• Labour Force Participation and Productivity Deficits: Labour force participation rates (LFPRs) have remained stagnant, especially for women, who have the lowest LFPR globally. The region also suffers from low total factor productivity (TFP) in formal private-sector firms, which is a key factor in the low employment creation.

• Skill Mismatch: Despite progress in reducing illiteracy, the region still faces significant challenges in education completion and quality. Educational systems are often misaligned with the needs of the labour market, leading to a mismatch between skills and job requirements.

• Gender Inequality: Women face considerable barriers to employment and leadership positions. The share of women in top management roles is low, and they are underrepresented in business ownership and decision-making. This is attributed to sociocultural norms, limited access to finance, and structural constraints.

• Private Sector Role: The formal private sector has played a limited role in job creation, especially compared to other regions. This is due to a combination of factors, including low TFP, high capital-labour inequality, and weak innovation and technology adoption.

• Impact of the Pandemic: The pandemic has exacerbated existing issues, reducing employment opportunities and increasing poverty. It has also highlighted the need for more inclusive and sustainable employment strategies.

• Need for Policy Reform: The report emphasizes the importance of policy reforms to address structural issues, improve the business environment, and support private-sector growth. It also calls for gender-sensitive policies to enhance women's participation in the workforce and leadership roles.

Key Information

• Demographic Trends: The Arab region has experienced a demographic shift, with an increasing working-age population. However, the growth in the workforce has not been matched by job creation, leading to high unemployment rates.

• Education and Skills: The region has made progress in reducing illiteracy, but educational quality and relevance remain problematic. The education system is often not aligned with the needs of the labour market, resulting in a significant skills mismatch.

• Labour Market Characteristics: The informal sector dominates employment, with poor working conditions and limited job security. Women are disproportionately affected, with low participation rates and fewer opportunities in the formal sector.

• Productivity and Innovation: Total factor productivity (TFP) in the formal private sector is lower than in similar-income countries. Innovation has a varied impact on employment, with process innovations generally being more beneficial than product innovations.

• Policy Recommendations:

  • Improve the alignment of education and training systems with the needs of the labour market.
  • Promote gender inclusivity by challenging sociocultural norms and reforming labour laws.
  • Enhance the business environment to encourage private-sector growth and innovation.
  • Support SMEs through financial inclusion and capacity-building.
  • Implement social protection measures and employment-guarantee schemes to address short-term and long-term challenges.

Structure of the Report

Chapter 1: Labour Supply: Dragging Issues and Limited Policy Response

• Overview of the Arab labour market.
• Demographic shifts and their impact on employment.
• Education and skills mismatch.
• Labour force participation and unemployment rates.
• Informal employment trends.
• Policy recommendations to address these issues.

Chapter 2: Job Creation in the Formal Private Sector

• Analysis of the formal private sector's role in employment creation.
• Inequality between capital and labour.
• Impact of technology, innovation, and firm characteristics on productivity and employment.
• Sectoral growth and employment elasticity.
• Policy recommendations to improve private-sector performance.

Chapter 3: Employment Creation for Women

• Examination of women's employment in the formal and informal sectors.
• Selected sectors where women are more likely to be employed.
• Ownership structure and firm size.
• Women in leadership positions.
• Impact of female presence on innovation and R&D.
• Policy recommendations to support women's economic participation.

Chapter 4: Private-sector Development and Creation of Decent Jobs

• Policy measures to address the short-term crisis (e.g., social protection, employment-guarantee schemes).
• Medium- to long-term strategies for structural transformation and diversification.
• Support for SMEs and innovation.
• Conclusion emphasizing the need for inclusive and sustainable job creation.

Conclusion

The report underscores the urgent need for structural reforms to enhance job creation in the Arab region. It calls for a shift from the current model that prioritizes rentier economies and weak private-sector development to one that fosters inclusive and productive growth. By addressing education gaps, improving the business environment, and promoting gender equality, the region can create more decent and sustainable employment opportunities for its population.