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Economic & Sector Work :: Other Social Protection Study

Tunisia : Employment Strategy, Volume 2. Annexes

ACCOUNTING AGRICULTURE BARRIERS TO ENTRY CAPITAL FLOWS CAPITAL GOODS CLIMATE COMPARATIVE ADVANTAGES COMPETITIVE MARKETS COMPETITIVENESS CORPORATE PROFITS COST OF CAPITAL DEBT DEPRECIATION DEREGULATION DEVELOPED COUNTRIES DISTRIBUTION OF INCOME ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT ENTREPRENEURSHIP EQUILIBRIUM EQUITY INVESTMENTS EXCHANGE RATE EXPORT GROWTH EXPORTS FISCAL DEFICITS FORECASTS GDP GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN DEVELOPMENT IMPORTS INCOME INCOME LEVELS INCREASING RETURNS INFLATION INFLATION RATES INNOVATION INTEREST RATE INTEREST RATES INTERMEDIATE GOODS INTERNATIONAL TRADE KNOWLEDGE ECONOMY LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LIVING STANDARDS MACROECONOMIC STABILITY MARKET LIBERALIZATION MIGRATION MONETARY POLICY MONOPOLIES PRICE CONTROLS PRIVATE SECTOR PRODUCT MARKETS PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PUPILS REAL WAGES SAFETY SAFETY NETS SERVICE INDUSTRIES TAXATION TECHNOLOGICAL CHANGE TELECOMMUNICATIONS TERMS OF TRADE TRADE LIBERALIZATION UNEMPLOYMENT UNEMPLOYMENT RATES URBAN DEVELOPMENT VALUE ADDED VOCATIONAL TRAINING WAGE DIFFERENTIALS WAGES WORKERS EMPLOYMENT STRATEGIES EMPLOYMENT CREATION POLICIES EMPLOYMENT POLICY EMPLOYMENT SKILLS REFORM POLICY REFORM IMPLEMENTATION PRIVATE SECTOR PARTICIPATION ENTERPRISE RESTRUCTURING ECONOMIC POLICY EDUCATION & ECONOMIC DEVELOPMENT VOCATIONAL EDUCATION VOCATIONAL TRAINING LABOR MARKET NEXUS SKILLS INVESTMENT POLICY BUSINESS ENVIRONMENT COMPETITIVENESS PRODUCTIVITY GROWTH CAPITAL UTILIZATION LABOR ABSORPTION HUMAN RESOURCES DEVELOPMENT REGULATORY FRAMEWORK INSTITUTIONAL CAPACITY SOCIAL PROTECTION SYSTEMS LABOR MARKET POLICY PROGRAM IMPLEMENTATION GOVERNMENT ROLE
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Washington, DC
Middle East and North Africa | Tunisia
2013-09-05T14:58:10Z | 2013-09-05T14:58:10Z | 2004-05-28

In spite of the Government's commitment to social development, with employment resting at the heart of Tunisia's Tenth Development Plan, the recent economic slowdown however, hampers expectations on meeting the employment goals of the Plan. Output growth would have to increase significantly in light of unchanged employment elasticity, to create enough jobs to absorb the increasing labor force. However, the Tunisian private sector has not played a dynamic role in terms of job creation: small and medium scale enterprises (SMEs), are mainly concentrated in the traditional manufacturing sectors, with low value-added; enterprise restructuring has not occurred, mainly due to an economic growth that has not led to enough reallocation of resources, despite the unexploited productivity gains in respect to reallocation of labor to high productivity sector; and, the high unemployment rates among educated youth, reflect gaps between skills in demand by employers, and skills offered by job seekers. Within this context, this report proposes broad policy options to help improve the country's employment strategy over the medium term. Several reforms - liberalization of the product markets, improvement of investment climate, and reforms in education and vocational training - have been implemented to improve labor market performance. The overall employment strategy needs to be based on the fundamentals of sound economic policies that promote competitive product markets, and private-sector-led growth, particularly in service industries. This will require an investment climate, and a favorable business environment, particularly for SME development, to promote both employment and productivity growth in high value-added sectors. Notwithstanding, investment policies should provide a better balance between utilization of capital and labor. And, regardless of its engagement to investments in human resources, Tunisia should ensure that ongoing reforms in education, and vocational training focus on market needs. Finally, labor market regulations and institutions need to be flexible, so as to adjust to changes in business conditions. This approach requires a more effective social protection system, through efficient active labor market programs and, perhaps, through income support for laid-off workers.

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