Unemployment Rate and COVID-19 in Egypt, the UAE, and Bahrain

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Table of Contents

Introduction
Received VS. Expected Feedback
Policy Implications and Possible Solutions
References

Introduction

The topic chosen for this study is the influence of COVID-19 on the rate of unemployment in Egypt, the United Arab Emirates, and Bahrain. Due to coronavirus and extended lockdowns, many workers in labor importing countries lost their jobs, which resulted in an increase in the unemployment rate. Nevertheless, these rates are much lower in the Gulf countries, most likely because their populations are smaller and remain engaged in those activities that are not affected by the COVID-19 thanks to governmental support. What is more, private businesses were told to keep local employees and fire foreigners, which allows unemployment rates to remain low as citizens have their jobs and expatriates leave Gulf countries (Barbuscia and Rashad 2020). Oil price reductions also may make the expatriates take the hit.

Despite the severe increases in the UAEs and Bahrains unemployment rates, Egypt is one of those countries that managed to benefit from the coronavirus situation and improve their political and economic states. There are several probable explanations, including support of the government and rapid economic and social recovery. However, researchers also suggest that the unemployed of the informal sector are omitted from the official data (Egyptian Center for Economic Studies 2020, 9).

In order to gather necessary and relevant information, a number of trustworthy governmental sources were used. We typed the keywords and checked the appropriate websites whether they had the data we needed. To create the infographic, several sources, namely, Egypt Today Staff: Decline in 2020 Unemployment Rate Shows Egypts Economic Progress Amid COVID-19 Crisis: Cabinet (2020) and Focus Economics: Unemployment in Bahrain (2018a), Unemployment in Egypt (2018b), and Unemployment in United Arab Emirates (2018c) were found helpful. What is more, Plecher (2020), WAM (2020), and The World Bank (2020) also provided us with essential information. The target audience was the students at the American University in Cairo. The infographic was posted on January 18, 2021, in the university groups on Facebook and WhatsApp.

Received VS. Expected Feedback

We managed to receive responses from three students, and their comments are rather different. The first respondent noticed that the infographic was clear, and they could get the information right away. Though this feedback is more related to the infographic than the topic itself, we are grateful to receive it as we were concerned whether our presentation is actually easy to follow. The third student also did not mention the topic in their response.

Instead, they noted liking the fact that the infographic did not have too many words but rather charts that illustrated the idea. Indeed, the figures and diagrams provided in the infographic allow students to make sure that unemployment rates are reducing or increasing. Finally, the feedback from the second student concerned the topic itself. They admitted not expecting that Egypt had a decrease in the unemployment rate during COVID-19.

Though we are grateful for receiving these responses, they are not entirely consistent with our expectations. To be honest, we hoped that more students would comment on the unemployment. We also expected some of them to probably indicate the possible implications of the coronavirus for the politics of the United Arab Emirates and Bahrain, as well as suggest solutions and efforts. Since some of them were discussed in our class materials, we supposed that the students might want to mention them in their responses.

Policy Implications and Possible Solutions

A fall in economic activities and severe quarantine measures cause a decline in labor supply, and many people in the UAE and Bahrain, as well as a vast number of other countries, are left without work and needed money. Lower consumption of services and goods is likely to result from the loss of labor income, which will negatively affect the sustainability of economies and businesses continuity. It is rather positive news that in Egypt, there is a decrease in the unemployment rate by 10.1% despite COVID-19 (Egypt Today Staff 2020). Therefore, to solve the increase in unemployment in the UAE and Bahrain, it is necessary to suggest possible solutions in addition to those that have been tested and proven to be effective in Egypt.

The countrys success in reducing unemployment during such a difficult time may be attributed to several reasons. To begin with, the government decided not to stop the implementation of approximately 9,000 service and developmental projects in all sectors, which was rather beneficial. Receiving tourist groups and reopening resorts and airports in Luly helped to reduce unemployment. Finally, the government itself was not in favor of suspending work in Egypt because of the pandemic, making it easier for the citizens to stay above the poverty line. In addition to these strategies, several others may be suggested to Egypt, the UAE, and Bahrain.

To begin with, all workers, as well as their family members, should be effectively protected from the COVID-19 health risks. Large-scale public investment and support are required to introduce protective measures at the workplace. Next, it is extremely important to coordinate policy efforts to stimulate the labor demand and economy and provide income and employment support. In this case, workers, employers, and enterprises may be protected from immediate income and employment losses. Third, to ensure the relevance of policy responses, it is essential to monitor both indirect and direct impacts of the interventions. Finally, for other countries, it is recommended to take an example from Egypt and adopt its successful practices, namely, health recuperation and economic and social recovery.

References

Barbuscia, Davide, and Marwa Rashad. 2020. Whats the Point of Staying?: Gulf Faces Expatriate Exodus. Reuters. Web.

Egypt Today Staff. 2020. Decline in 2020 Unemployment Rate Shows Egypts Economic Progress Amid COVID-19 Crisis: Cabinet. Egypt Today. Web.

Egyptian Center for Economic Studies. 2020. Follow-up on Covid-19 Consequences on Egyptian Economy: Egyptian Labor Market. ECES 23: 1-13.

Focus Economics. 2018a. Unemployment in Bahrain. Web.

Focus Economics. 2018b. Unemployment in Egypt. Web.

Focus Economics. 2018c. Unemployment in United Arab Emirates. Web.

Plecher, H. 2020. Bahrain: Unemployment Rate from 1999 to 2020. Statista. Web.

WAM. 2020. UAE Unemployment Rate Among Lowest in the World. Khaleej Times. Web.

The World Bank. 2020. Bahrains Economic Update October 2020. Web.

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Unemployment Rate and COVID-19 in Egypt, the UAE, and Bahrain

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