6 million jobs at least are expected to be lost in the Arab countries in 2020, following the pandemic
The economic growth rate required to restore jobs is estimated at 4 percentage on average for the Arab countries as a group
In line with its continuous efforts to support the decision-making process in the Arab countries, the Arab Monetary Fund (AMF) has recently released a study on the "Assessing Job losses due to Coronavirus Pandemic (COVID-19) and the minimum required economic growth for job creation in the Arab labour markets”.
The study adopted an econometric model to assess the impact of Coronavirus on unemployment rates in some of the Arab countries. The study confirmed the asymmetric effects of the business cycles on unemployment, as it showed that the unemployment is affected more in times of recessions than in times of expansion.
According to the anticipated economic recession in the Arab countries in 2020, which is about 4 percent, the Arab region is expected to lose about 6 million jobs in 2020. This loss will increase the unemployment rate by 4 percentage points for the Arab countries as a group, compared to the pre-pandemic levels.
According to this new study, the minimum economic growth which is required to create enough new jobs to reduce the unemployment rate is estimated at 4.0 percent in the case of the Arab region.
A full version of the study is available at the link: https://www.amf.org.ae/en/content/assessing-job-losses-due-coronavirus-pandemic-and-minimum-required-economic-growth-job
© Press Release 2020