There are multiple and complex causes behind youth unemployment all around the world. Among them, the quality and relevance of education and inflexible labour market and regulations create a situation of assistance and dependency compounding the problem further.
The president of Algeria stated that the payments to jobseekers aged between 19 and 40 would begin in March and it is aimed at preserving the dignity of young people.
Algeria’s president says the government will introduce unemployment benefits for young adults as the country struggles with high rates of joblessness.
He said that there are over 600,000 unemployed in Algeria. Those who are eligible will be able to collect the payments of about $100 (£73) a month, as well as some medical benefits until they find work.
Algeria will offer its jobless youth a monthly grant of 13,000 dinars (around $100), a decision aimed at alleviating the economic crisis,d Tebboune told reporters.
The allowance is equivalent to nearly two-thirds the minimum wage of 20,000 dinars ($142) and it will begin in March.
Also, taxes on consumer products for beneficiaries will be suspended. Making the announcement, Mr Tebboune said that Algeria was the first country outside Europe to introduce such a benefit.
Algeria, Africa’s biggest gas exporter with around 45 million people, earns some 90% of its state revenues from hydrocarbons.
The youth payments are the execution of a portion of the 2022 budget.
In November, lawmakers voted to scrap generous state subsidies on basic goods that had long helped maintain social peace, but that had strained state budgets as energy revenues fell.
The Algerian leader also said that an Arab League summit will be held in the fourth quarter of this year, after previously announcing that it would be postponed.
The 31st Arab League Summit was set to be held in March after Tebboune said his country would host it in November. The new date of the meeting will be announced next month.
Poverty in Algeria is distributed unequally among groups. This is mainly due to the country’s economy heavily relying on a few market sectors. This creates disparities in unemployment and poverty rates based on region, age and sex as the economy is reliant upon a few job types and resources.
Youth unemployment not only has a negative effect on the individual and the family, but also on the broader community in the form of serious economic and social consequences. This includes economic welfare, production, and erosion of human capital, social exclusion, crime and social instability.
Unemployment refers to the share of the labour force that is without work but available for and seeking employment. Algeria’s unemployment rate for 2020 was 12.83%, a 1.02% increase from 2019.
The relatively low output-employment elasticities and rigid labour market are the main factors behind the prevailing high level of unemployment, particularly among the youth, in Algeria.
