Cairo: Egypt's unemployment rate decreased to 5.8% in the second quarter of 2026, showing a slight improvement from approximately 6% in the first quarter. This reflects ongoing enhancements in the labor market's performance, according to Minister of Planning and Economic Development Ahmed Rostom, who shared these insights during a Cabinet meeting chaired by Prime Minister Moustafa Madbouly.

According to State Information Service Egypt, Rostom highlighted that male unemployment fell to 3.4% in Q2, down from 3.6% in Q1. Meanwhile, the unemployment rate among females was 14.4% in Q2, a marginal increase from 14.3% in the previous quarter. Rostom emphasized the need for continued policies and programs to create more job opportunities, especially for women.

Rostom noted that the unemployment rates varied between urban and rural regions, with urban areas experiencing an increase to 8.8% in Q2 of 2026, while rural areas saw a decline to 3.5%, down from 4.2% in Q1. This trend indicates improved employment indicators in rural areas, with ongoing efforts to expand job opportunities in urban centers.

He also reported an increase in Egypt's labor force to approximately 35.64 million people in Q2 of 2026, up from 35.41 million in Q1, representing a 0.6% rise. The number of unemployed individuals decreased by 2.4% to around 2.08 million in Q2, compared to 2.13 million in the previous quarter. This suggests an improved capacity of the economy to absorb new labor market entrants, despite persistent differences in economic participation rates between males and females.

Additionally, the number of employed people rose to about 33.6 million in Q2, compared to 33.3 million in Q1, marking a 0.8% increase. The employed male population reached around 26.9 million, while employed females totaled approximately 6.67 million. This reflects continued improvement in employment conditions and increased job opportunities, underscoring the importance of further efforts to enhance women's participation in economic activity.

In terms of sectoral employment distribution, Rostom stated that agriculture and fishing remained the largest employers, with around 6.25 million workers, representing 18.6% of total employment. This was followed by wholesale and retail trade at 17.2%, manufacturing at 13.5%, construction at 11.8%, and transportation and storage at 9.3%.

Rostom concluded that these indicators demonstrate ongoing improvements in labor market conditions, with agriculture as Egypt's largest source of employment, followed by trade, while industry, construction, and transport sectors continue to play a key role in providing jobs and supporting economic growth.