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The Arab Monetary Fund has confirmed that unemployment rates will increase in the Arab world during the current year due to the new Corona pandemic (Covid-19), predicting that the Arab region will lose around 6 million jobs.
A study prepared by the Fund entitled “Assessing the job loss due to the Corona pandemic and estimating the minimum required for economic growth to create jobs in Arab labor markets” revealed that the Arab region is witnessing a real and its own recession during the current year, indicating that in light of the expected recession for the Arab economies it is estimated at 4% In 2020, about 6 million jobs will be lost in the Arab region in 2020.
The study indicated that this figure represents an increase in the unemployment rate of no less than four percentage points at the level of Arab countries as a group from pre-pandemic levels.
The study estimated the minimum required economic growth that would allow for the creation of new jobs sufficient to reduce the unemployment rate in the Arab region by around 4%.
The study is part of the efforts made by the Arab Monetary Fund in terms of research activities to support decision makers in Arab countries on priority issues. The study adopted a standard model for estimating the impact of “Corona” on unemployment rates in some Arab countries.
The study revealed the asymmetrical effect of business cycles on unemployment, as it showed a greater impact of recessions on Arab labor markets than periods of expansion.
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