Promotion of economic system and employment

Programme description

Title: Private Sector and Employment Promotion (PSEP)
Commissioned by: German Federal Foreign Office (AA)
Country: Egypt
Lead executing agency: National Employment Pact (NEP)
Overall term: 2012 to 2014

Context

High unemployment and the lack of job or career prospects are two of the most pressing social problems in Egypt. In June 2013, the unemployment rate was 13.2 per cent, the highest it has been over the last ten years.

On the other hand, private sector employers have difficulty in finding qualified and motivated staff, which leaves vacant positions unfilled. Hence, the main problem on the Egyptian job market is that job seekers and employers with vacancies either do not meet, or are mismatched. This is particularly true on the non-academic (blue collar) job market. One reason is the general lack of career guidance and placement structures that help young people in the transition from school or unemployment to a job. In addition, job quality in blue collar employment is often inadequate.

Objective

The unemployment rate in Egypt, especially in blue collar jobs, is lower. The employment situation of young people is improved and contributes to the economic and social development and stabilisation of Egypt. Sustainable structures are established for job placement, the job quality in small and medium-sized enterprises is better.

Approach

The project supports the National Employment Pact (NEP). The NEP is a joint initiative of the Egyptian and German private sectors and the German-Arab Chamber of Industry and Commerce (GACIC). The NEP’s private sector partners include Siemens, BASF, Bavarian Auto Group, Mercedes and Thyssen Krupp. Together with the GACIC and GIZ, they are represented on the NEP’s Steering Committee and provide technical and financial support to the Employment Pact.

In close cooperation with the partners of the NEP, employment centres are being set up and career guidance and job placement services offered. Career advisors and employment facilitators at the centres canvass for jobs that meet the criteria of fair and reasonable employment and thus represent career opportunities enabling the employees to earn a living. The centres support young adults in their search for work and advise companies on recruiting and filling vacancies.

To improve job quality in the non-academic job market, a Better Business with Job Quality competition was held for small and medium-sized companies in Egypt together with the German-Arab Chamber of Industry and Commerce (GACIC). It aimed to promote jobs with fair conditions and to enhance the appeal and standing of blue collar jobs in Egyptian society.  

Results achieved so far

Job placement:

  • Three employment centres have been set up.
  • Job placement processes and functions have been developed or adapted to the Egyptian context.
  • The first 30 employment facilitators have been trained and hired in the three employment centres.
  • 171 Egyptian companies have used the services of the employment centres.
  • 22,442 job vacancies have been acquired.
  • 15,319 job seekers have applied for jobs via the employment centres.
  • 1,029 job seekers have received intensive career guidance at the employment centres (work orientation measures).
  • 1,003 applicants have been placed in jobs.

A placement costs on average EUR 45. The number of placements per employment facilitator is currently around 50 per year. Hence, the employment centres have already achieved results in the first year that are comparable with those of the Federal Employment Agency in Germany.

 Improving job quality:

  • 130 companies submitted project proposals in the Better Business with Job Quality competition. Companies from almost every part of Egypt took part. 
  • The 14 best project ideas were selected and are being implemented with support from the NEP. The selected companies operate in eight different industrial sectors. 
  • 2,300 employees benefit directly from the projects. 70 per cent of these work in the blue collar segment.

 

Further information