Egypt’s Economic Crisis: A Matter of Survival and Security

Lojain Soheim

Dennis Jarvis (CC-BY-2.0) | (Via: Britannica Publishing Partner)

For the average working-class Egyptian, a kilo of produce can swallow up nearly an entire day’s wage. Egyptian economic insecurity is no longer a matter of balance sheets or reliance on foreign aid; it is a matter of human security. High youth unemployment levels, surging inflation, and eroding purchasing power leave millions of Egyptians unable to live in dignified means, undermining both societal cohesion and the nation’s long-term stability. 

The most populous country in the Middle East region, with almost 120 million citizens, Egypt’s official unemployment rate is reported to be 6.6%, yet the youth population faces an even deeper crisis. Approximately one in five Egyptians aged 20-24 is unemployed, and the rate is higher among women, where it is estimated to sit around 40%. The issue, however, goes beyond the simplicity of job-market availability. Although availability plays a role, the concept of job mismatch is the central issue. Young people with postsecondary degrees are more likely to be unemployed than those with lesser education; essentially, Egypt produces graduates with degrees and essential capabilities, but not the jobs for them to fill and work. 

Given the rate of youth unemployment and unemployment in general, it is no surprise that those who do find jobs are often forced into dangerous and unregulated work. More than 60% of employment in Egypt is conducted informally, either as seasonal or casual, contract-less labor. For many, this translates to long hours, exhausting tasks, and minimal pay—all with little to no guaranteed safety. In fact, a June 2025 headline revealed that a minibus carrying 18 teenage girls to agricultural day jobs crashed, killing all on board. The girls, who were between 13 and 18, had been traveling to work 12-hour shifts for less than $3 USD (130 EGP) the day they died. A similar story grasped public attention in May 2024 when nine child agricultural workers died after their minibus drove off a river ferry and into the Nile. These deaths serve as a reminder that even with the abundance of informal opportunities to offset the decline in formal employment, the labor market in Egypt is far from ensuring safety, security, and dignity for workers. 

Along with the lack of physical protections that accompany informal employment, inflation has effectively taken away the monetary protection of purchasing power that supports both formally and informally employed individuals. Any work, no matter the kind, no longer guarantees a decent standard of living. Since March 2022, the Egyptian Pound has lost more than two-thirds of its value against the U.S. Dollar, with peak inflation hitting almost 38% in September 2023. Concurrently, food price inflation has risen above 60%, with staple foods like onions rising more than 400%. For families, this has meant seeing essential items go from accessible to unaffordable in just a few years. Government-endorsed wage increases were implemented to fight this sort of inflation, but they failed to keep pace. In 2025, a government-enforced wage raise of 6,000-7,000 EGP monthly, depending on public or private sector jobs, still fails to meet the cost of food and other necessities. Any income growth that occurs is largely offset by inflation, leaving millions at a loss.

The lack of economic opportunities at home, along with the decline in value of the Egyptian Pound, is fueling immense pro-migration sentiment among the population. Nearly half of Egyptian youth aged 18-29 have considered leaving the country, with over 75% stating that economic reasons were the driving factor. This phenomenon, known as “Brain Drain,” represents both personal hardship and a potential blow to Egypt’s development: as educated populations find themselves trapped in an economy that does not reward their skills, they choose to leave it. Stripped of agency in their employment and feeling compelled to leave behind family and community to pursue economic opportunities, youth populations embody the link between 

Egypt’s economic instability and its effects on people’s quality of life.

Leaders often look at security in terms of military strength and national projects, but for the average citizen, it is measured by the ability to put food on the table and earn a stable income. When economic insecurity becomes the norm, as it is in Egypt, instability is fueled. A population that feels lost or undervalued is vulnerable to unrest and societal divisions. Without changes, Egypt faces worsening wealth inequalities, a wider gap between rural and urban communities, and a continued risk of brain drain. Egyptian leaders are faced with a clear choice: continue relying on short-term fixes that are proven to fail or confront the deeper issues eroding the country’s human security. 

True economic security for Egyptians will not come from military strength or any number of construction projects, but when citizens feel empowered to live with dignity. This means safe employment options, wages that can withstand the costs of food and shelter, and a nation where young people see a future for themselves at home. Economic security is deeply intertwined with the facts of national and human security, affecting the everyday lives of citizens. Egypt’s stability and prosperity depend on placing livelihoods, opportunities, and dignity for its people at the center of decision-making—that is the only way to ensure that Egyptians are free from fears of poverty and instability.