THE CHALLENGE OF UNEMPLOYMENT IN THE ARAB REGION

The authors examine the forces that have shaped Arab labour markets over the past two decades, namely demographic pressures, oil price Fluctuations, state domination of the economy, and international migration. Since the mid-1980s, while labour force growth rates have remained high, migration has no longer provided an adequate safety valve for the over-supplied urban labour markets of the region's more populous countries. Public sector employment is not a solution either. Against this background, the article examines the employment policy challenges facing the region's decision-makers, including massive unemployment, disproportionate public sector employment, structural adjustment and labour market regulation.