ILO and Tunisia: Quality Jobs and Economic Growth
5 October 2011
Read by 1470 persons
In a new report "Tunisia: A New Social Contract for Just and Equitable Growth", published by the ILO's International Institute for Labour Studies on the economic situation and employment in Tunisia, the International Labour Organization (ILO) calls for massive investment in the creation of quality jobs, especially for increasingly numerous young unemployed people.
The report of the International Institute for Labour Studies offers an in-depth analysis of Tunisia's economy and labor market and encourages it to take a series of measures to revive the economy, create quality jobs, increase wages and promote equality and social protection.
In the past, the Tunisian economy had often been praised for its macroeconomic achievements and competitiveness, as well as for its education system, but the study asserts that in reality, economic growth was fundamentally unfair.
"Despite sustained economic growth and a highly educated workforce, the economy has not created enough jobs or managed to sustain them in the end," notes Raymond Torres, Director of the Institute. The report adds that, at around 30 percent, the unemployment rate of young Tunisians was among the highest in the world; but it was neglected on the pretext that economic growth was strong.
"The new political context represents a real opportunity for access to growth for all and therefore to real prosperity," added Mr. Torres. This involves addressing certain structural weaknesses, including:
A major deficit in terms of creating quality jobs: the workforce increased from less than 3 million in 1994 to about 4 million in 2010. Between 2004 and 2007, the net creation of 77,000 jobs was recorded, but these were mostly low-skilled positions.
A gap between jobs created and the skills of the workforce: the unemployment rate for university graduates rose from 14 percent in 2005 to nearly 22 percent in 2009, while it fell for non-graduates during the same period.
Low levels of private investment: Despite rising profit rates, investment declined between 1990 and 2007: private investment as a percentage of GDP fell by 1.2 percentage points. Tunisia was one of only three countries in the North Africa-Middle East region (along with Algeria and Egypt) to experience a decline in investment as a percentage of GDP during this period.
Low wages: Between 2004 and 2007, real wages increased by barely 2 percent on average annually, which is less than the average annual increase in productivity of nearly 3 percent during the same period.
High emigration: The number of skilled Tunisian workers in Europe is estimated to have doubled during the 1990s, a trend that continued in the 2000s. High emigration has always relieved some of the pressure on the Tunisian labor market, but with the global crisis, access to foreign labor markets has become more difficult, thus exacerbating internal social tensions.
Persistent inequalities between men and women: In 2010, despite better education, the activity rate for women was only 24.8 percent compared to 69.5 percent for men, while the unemployment rate for women reached 19 percent compared to 11 percent for men.
Shortcomings in social protection: For example, the percentage of unemployed people receiving unemployment benefits was only 3 percent in 2008, the equivalent of only 13,000 people.
Looking to the future, the report indicates that "a number of measures have been taken by the new authorities (...), particularly regarding youth unemployment", but adds that this momentum should be used to address labor market failures and to improve national dialogue on key issues.
All these themes were discussed during a study day organized in Tunisia on September 28 by the National Institute of Labor and Social Studies (INTES), in collaboration with the Tunisian Association of Social Law (ATDS) and the Association of INTES Alumni. Among other additional measures mentioned during this day, there is in particular the need to break old development patterns by encouraging larger private investments and promoting more vigorous and sustainable job creation through innovative policies that advance the country technologically and take into account the existence in Tunisia of a skilled workforce. There was also discussion of improving the efficiency and solvency of the social protection system, encouraging dialogue between employers and workers on wages, workers' rights and establishing a climate conducive to investment.
"As Tunisia moves forward, a unique opportunity presents itself to adopt a new socio-economic strategy that improves employment and investment prospects for all, paving the way for sustainable growth," concluded Mr. Torres.
© News Press 2011
Issued by the ILO.
Published October 5, 2011.
Posted online October 5, 2011.
Tv5.org
The report of the International Institute for Labour Studies offers an in-depth analysis of Tunisia's economy and labor market and encourages it to take a series of measures to revive the economy, create quality jobs, increase wages and promote equality and social protection.
In the past, the Tunisian economy had often been praised for its macroeconomic achievements and competitiveness, as well as for its education system, but the study asserts that in reality, economic growth was fundamentally unfair.
"Despite sustained economic growth and a highly educated workforce, the economy has not created enough jobs or managed to sustain them in the end," notes Raymond Torres, Director of the Institute. The report adds that, at around 30 percent, the unemployment rate of young Tunisians was among the highest in the world; but it was neglected on the pretext that economic growth was strong.
"The new political context represents a real opportunity for access to growth for all and therefore to real prosperity," added Mr. Torres. This involves addressing certain structural weaknesses, including:
A major deficit in terms of creating quality jobs: the workforce increased from less than 3 million in 1994 to about 4 million in 2010. Between 2004 and 2007, the net creation of 77,000 jobs was recorded, but these were mostly low-skilled positions.
A gap between jobs created and the skills of the workforce: the unemployment rate for university graduates rose from 14 percent in 2005 to nearly 22 percent in 2009, while it fell for non-graduates during the same period.
Low levels of private investment: Despite rising profit rates, investment declined between 1990 and 2007: private investment as a percentage of GDP fell by 1.2 percentage points. Tunisia was one of only three countries in the North Africa-Middle East region (along with Algeria and Egypt) to experience a decline in investment as a percentage of GDP during this period.
Low wages: Between 2004 and 2007, real wages increased by barely 2 percent on average annually, which is less than the average annual increase in productivity of nearly 3 percent during the same period.
High emigration: The number of skilled Tunisian workers in Europe is estimated to have doubled during the 1990s, a trend that continued in the 2000s. High emigration has always relieved some of the pressure on the Tunisian labor market, but with the global crisis, access to foreign labor markets has become more difficult, thus exacerbating internal social tensions.
Persistent inequalities between men and women: In 2010, despite better education, the activity rate for women was only 24.8 percent compared to 69.5 percent for men, while the unemployment rate for women reached 19 percent compared to 11 percent for men.
Shortcomings in social protection: For example, the percentage of unemployed people receiving unemployment benefits was only 3 percent in 2008, the equivalent of only 13,000 people.
Looking to the future, the report indicates that "a number of measures have been taken by the new authorities (...), particularly regarding youth unemployment", but adds that this momentum should be used to address labor market failures and to improve national dialogue on key issues.
All these themes were discussed during a study day organized in Tunisia on September 28 by the National Institute of Labor and Social Studies (INTES), in collaboration with the Tunisian Association of Social Law (ATDS) and the Association of INTES Alumni. Among other additional measures mentioned during this day, there is in particular the need to break old development patterns by encouraging larger private investments and promoting more vigorous and sustainable job creation through innovative policies that advance the country technologically and take into account the existence in Tunisia of a skilled workforce. There was also discussion of improving the efficiency and solvency of the social protection system, encouraging dialogue between employers and workers on wages, workers' rights and establishing a climate conducive to investment.
"As Tunisia moves forward, a unique opportunity presents itself to adopt a new socio-economic strategy that improves employment and investment prospects for all, paving the way for sustainable growth," concluded Mr. Torres.
© News Press 2011
Issued by the ILO.
Published October 5, 2011.
Posted online October 5, 2011.
Tv5.org
