The labor market in Algeria has improved in the last few decades. Compared to the 2000s, the unemployment rate declined significantly and the
in the country increased in recent years. Nevertheless, there are still several challenges related to the high levels of labor market segmentation. Moreover, in recent times, the local economy has been hit by the coronavirus (COVID-19) crisis, political instability, and fluctuating oil prices. This negatively impacted the Algerian job market.
Youth and women face high unemployment
While the overall
unemployment rate remained relatively low in the last years, standing at around 12.3 percent in 2023,
youth unemployment reached nearly 31 percent in 2023. Young people's employment is a key challenge for Algeria. The country's population has been growing constantly in the last ten years, which is why the new generations represent significant potential for national economic development. The job situation is also critical for women. Although women are, on average,
more educated than men, the
female employment rate has been far lower than that of men in recent years. Among other reasons, the gap is mostly due to gender discrimination, lack of skills, and cultural legacies.
Increasing service-orientation
Nearly 60 percent of the labor force in Algeria is
employed in the service sector. Most recently, services have represented one of the country’s leading sector in terms of
economic contribution, with the Algerian economy becoming increasingly service-oriented up to 2020. The recent development of this sector comes with the attempt to diversify an economy that has been heavily reliant on
oil and gas. The hydrocarbon industry is particularly capital-intensive and only employs a small portion of the workforce. Therefore, the growing service sector offers further job opportunities for the Algerian population.
An attractive public sector
Similar to other countries in the Middle East and North Africa, the public sector in Algeria tends to be overstaffed. This is particularly true for women, who are
mostly employed by the government rather than by private enterprises. This situation is typical of oil-exporting countries such as Algeria, where the state, enriched by oil revenues, is central to the country’s economy. Public sector jobs offer
considerably higher wages, which usually do not adapt to current times. This, along with higher levels of job security, makes the public sector particularly attractive to job-seekers.
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