Will a significant surge in resignations affect the Egyptian labor market?

The pressures in the labor markets in the region, particularly in the non-oil-producing countries, are significantly increasing the geopolitical changes that raised the prices of primary commodities and energy-based products. This led the major global central banks to tighten their monetary policy, which constituted pressure on emerging economies and raised the prices of the major currencies in the world, thus increasing the cost of living.

Personnel Discharge

Target recruitment & HR solutions' annual study for 2023 on wages and benefits research indicates that macroeconomic pressures have led several companies to lay off their highest-paid employees due to the high costs, which has harmed production. These companies have yet to consider such matters because of the decline in demand. In addition, economic measures are taken in the region's markets that double the impact of global financial conditions on the labor market, as is the case in Egypt and Tunisia, where both countries lowered the rates of their currencies.

Mohamed El-Derwy, Managing Director of Target Human Resources Services, says that the vision has become blurry in the labor markets in most countries of the world after the increasing economic fallout since the Covid-19 pandemic and the Russian-Ukrainian crisis and beyond. Until the outbreak of the Eastern European crisis.

Turning to the Gulf

Regarding the Egyptian labor market, Mohamed El-Derwy stated an increase in the layoffs of employees receiving high salaries in their companies, and this coincided with a great demand for workers in the Gulf countries, which are characterized by a more stable labor market and wages that are around 35% higher than salaries in Egypt. What is noteworthy is accepting salaries that are not considered high.

El-Derwy adds that a significant surge of resignation has gradually begun to rise in Egypt in the in-demand jobs globally, including programming and outsourcing jobs, especially y through multiple options for ways workers in this field can go and the exorbitant salaries offered to them.

Pay raise

He called for an increase in wages to keep up with the inflation rates in the markets, as the percentages of the required increases in nominal wages in developing economies are about 0.6% for every 1% of inflation. At the same time, they are similar in advanced economies, with rates of increase in inflation, according to figures issued by the International Monetary Fund (IMF).

Referring to a previous study by Target, software development jobs are one of the most in-demand jobs in the world, as it expects demand to grow between 30% and 40% in the coming years. Notably, the digital transformation breakthrough around the world began in 2009, and since then, the need for software developers has increased.

Target recruitment & HR solutions have been a leading provider of human resources services in the Egyptian market since 2006 through 4 ground services: recruitment and talent management, human resources consulting, pay and benefits systems management, and human resource project management and governance.

Target, with longstanding expertise, also supports companies to focus on their core business through a professional team that handles recruitment, outsourcing services, personnel management, social and medical insurance, and setting general pay policies.