Egypt’s unemployment rate has fallen to 5.8% in the second quarter of 2026, continuing a long-term decline from levels of around 13% recorded more than a decade ago.
The latest labour market figures show unemployment easing from 6% in the first quarter of 2026, while both the number of employed people and the size of Egypt’s labour force increased during the April-to-June period.
Labour Minister Hassan Raddad highlighted the longer-term shift in August, saying the unemployment rate had declined from approximately 13% in 2014 to 5.8% today. He attributed the improvement to investment, national projects, vocational training and greater cooperation with the private sector.
Egypt’s Unemployment Rate Reaches 5.8%
According to labour market indicators reviewed by the Cabinet, Egypt’s unemployment rate stood at 5.8% in Q2 2026, compared with 6% during the first three months of the year.
The number of unemployed people declined by approximately 2.4% quarter-on-quarter, falling from around 2.13 million to 2.08 million.
At the same time, the number of employed people increased from approximately 33.3 million in Q1 to 33.6 million in Q2, representing growth of around 0.8%.
The country’s overall labour force also expanded during the quarter, reaching approximately 35.64 million people, up from 35.41 million in Q1.
That combination — a larger labour force, more employed people and fewer unemployed people — indicates an improvement in the headline labour market figures during the quarter.
How Does 2026 Compare With 2014?
The difference becomes particularly noticeable when compared with Egypt’s labour market more than a decade ago.
CAPMAS historical data show that the unemployment rate remained above or close to 13% throughout 2014.
It stood at 13.4% in Q1, 13.3% in Q2, 13.1% in Q3 and 12.9% in Q4.
That means the latest 5.8% rate is less than half the level seen during parts of 2014.
Labour Minister Hassan Raddad described the decline as a major achievement, saying government policy over the period had focused on expanding investment, implementing national projects, increasing training opportunities and supporting cooperation with private businesses to create jobs.
Male and Female Unemployment Rates Remain Far Apart
While the overall unemployment rate has declined, the latest figures reveal a considerable difference between unemployment among men and women.
Male unemployment fell to 3.4% in Q2 2026, compared with 3.6% during the previous quarter.
Female unemployment, however, stood significantly higher at 14.4%, slightly above the 14.3% recorded in Q1.
The figures show that improving women’s access to employment remains one of Egypt’s major labour market challenges.
Minister of Planning and Economic Development Ahmed Rostom stressed the importance of continuing programs aimed specifically at expanding employment opportunities for women.
Urban Unemployment Remains Higher Than Rural Areas
There is also a significant geographical divide.
Unemployment in Egypt’s urban areas reached 8.8% during Q2 2026, while the rate in rural areas fell to 3.5%.
The rural unemployment rate had stood at 4.2% during the previous quarter, meaning rural areas recorded a notable improvement during Q2.
The figures highlight how Egypt’s headline national unemployment rate can vary considerably depending on gender and location.
Which Sectors Employ the Most Egyptians?
Agriculture and fishing remained Egypt’s largest employment sector during the second quarter of 2026.
Around 6.25 million people, representing 18.6% of total employment, worked in agriculture and fishing.
Wholesale and retail trade followed at 17.2%, while manufacturing accounted for 13.5% of employment.
Construction represented 11.8%, followed by transportation and storage at 9.3%.
The figures underline the continued importance of traditional sectors such as agriculture while also showing the significant role played by industry, construction, trade and logistics in absorbing Egypt’s growing workforce.
Government Credits Investment, Training and National Projects
Raddad said several factors have contributed to the long-term decline in unemployment.
Among them are government investment programs, major national infrastructure and development projects, vocational training initiatives and partnerships with private-sector employers.
The government says its employment strategy is increasingly focused on ensuring that workers have skills that match actual labour market demand rather than simply expanding the number of training programs available.
Raddad has also emphasized preparing Egyptian workers for employment opportunities outside the country, particularly in Arab and European markets, through more specialized vocational training.
What Does the 5.8% Unemployment Rate Actually Measure?
The unemployment rate measures the share of people who are part of the labour force, do not currently have a job and are actively seeking work.
It therefore does not mean that only 5.8% of all working-age Egyptians are without jobs.
People who are not actively seeking employment are generally not counted as unemployed under the standard labour-force definition.
This distinction is important when assessing the health of a labour market, which is why indicators such as labour-force participation, employment growth, wages, job quality and female participation are also closely watched alongside the headline unemployment number.
Still, Q2 2026 brought a positive combination: Egypt’s labour force expanded while employment increased and the number of unemployed people declined.
Egypt’s Labour Market Continues Its Long-Term Shift
Egypt’s latest figures represent another step in a downward trend that has developed over more than a decade.
From unemployment levels of around 13% in 2014, the rate has gradually fallen to 5.8% in Q2 2026, while Egypt’s labour force has continued expanding.
Challenges remain, particularly the significantly higher unemployment rate among women and the gap between urban and rural labour markets.
But with 33.6 million people now employed and unemployment at 5.8%, the latest data point to continued improvement in one of the country’s most closely watched economic indicators.
