Figure 3: The Development of unemployment rate (1981-2008)
5.4
5.7
8.8
9.1
11.1 11.1 11.3
8.4
8.2
8.1
9.0
9.2
10.2
11.0
10.3
11.2
10.6
8.9 8.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
19
81
198
2
19
91
19
92
19
93
199
4
19
95
19
97
19
98
19
99
200
0
200
1
20
02
20
03
20
04
200
5
20
06
20
07
20
08
U
ne
m
pl
oy
m
e
nt R
a
te
Source: Egypt Information Portal/ IDSC referring to data from CAPMAS, 2008,
http://www.eip.gov.eg/nds/nds_view.aspx?id=3692
Perceived better life after returning from migration
Perception of a better life for return migrants is considered an important socio-
economic push factor. The Ministry of Manpower and Emigration (MME) undertook
several surveys showing that economic reasons (including upgrading living standards and
unemployment pressures) are the main culprits for a high potential of emigration (cited in
EUI, 2006; Fargues, 2006). Based on interviews, Zohry (2006b) identified a number of
reasons for increased irregular migration to Europe. As stated by Zohry (2006b):
An important factor that plays a major role in stimulating migration streams to Europe is
the wealth of successful migrants and return migrants. Remittances of Egyptian migrants who
work in European countries are important factors that stimulate a continuous stream of
migration. Potential migrants claim that ordinary workers can save an average amount of 6,000
Euro per annum while working abroad (about 40,000 Egyptian Pounds). Potential migrants
claim that the “savings of one-year work in Europe is more than a lifetime salary in Egypt”.
Building luxurious houses in rural Egypt, marriages, and consumerism behavior of returnees are
strong factors that attract new young men to migrate. When youth weigh the risks of irregular
migration against the expected returns, they prefer to take the risk for an assumed better life.
Moreover, and based on interviews, Zohry (2006b) asserts that there is a shift of migration
from Arab Gulf countries to Europe, facilitated by extended networks making irregular
migration easier.
Labour migration for decent work, economic growth and development in Egypt
9
Alleviating poverty
The Egyptian data indicate that about 74 per cent of migrant households spend the
largest share of funds received from relatives abroad on daily household expenses (Zohry,
2006a). This implies that migration has an important role to play in poverty alleviation, but
not directly in productive investment, rather through the financing of daily expenses and
consumption needs of the migrants' families back home in Egypt. This is fully expected, as
revealed by the high level of poverty prevailing in the Egyptian economy shown in Figure
4. Given the weak formal social safety net in Egypt, migration helps to improve living
standards and alleviate poverty.
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