Middle East and North Africa experienced a dramatic decline in overall economic conditions over the past two years with GDP growth falling from more than 6 per cent in 2000 to 1.5 per cent in 2001. Dismissals and redundancies resulting from reductions in the size of the public sector pushed up unemployment, which reached double-digit levels in some countries. Youth unemployment was distressingly high in some countries, including Syria, Algeria, Bahrain and Morocco. Moreover, the Gulf countries are increasingly adopting policies to replace migrant workers with their own nationals, a move that could have significant consequences for employment as well as remittances to countries supplying labour.
Unemployment in transition economies is on the increase again after falling from 13.5 per cent in 2000 to 12.6 per cent in 2001. Despite the economic recovery and high growth rates these countries experienced during 2000 and 2001, unemployment returned to the 13.5 level in 2002 due largely to the continuing trend of enterprises seeking to become more competitive by phasing out labour-intensive technologies and ending labour hoarding. At the same time, governments are cutting employment in the public sector. Accelerating structural change in anticipation of accession to the EU has also pushed up unemployment in the candidate countries.
Unemployment in transition economies is on the increase again after falling from 13.5 per cent in 2000 to 12.6 per cent in 2001. Despite the economic recovery and high growth rates these countries experienced during 2000 and 2001, unemployment returned to the 13.5 level in 2002 due largely to the continuing trend of enterprises seeking to become more competitive by phasing out labour-intensive technologies and ending labour hoarding. At the same time, governments are cutting employment in the public sector. Accelerating structural change in anticipation of accession to the EU has also pushed up unemployment in the candidate countries.