Saifaddin Galal
Research Expert North Africa
A large informal sector, the prevalence of the service sector, high levels of unemployment, and low female participation are some factors that have characterized Tunisia’s labor market in recent years. As of 2021, the labor force in Tunisia was constituted by around 4.2 million people. Of these, approximately 3.6 million were employed, while the rest were seeking employment. Although the number of working women has been slowly increasing in the last decade, men constitute the majority of the population employed in the country.
Employment forms and informal economy
Services represent the main economic sector in Tunisia and account for the largest share of employment. Around 53 percent of the working population was employed in the services sector as of 2019. The industrial and agricultural sectors follow, accounting for approximately 33 percent and 14 percent of the total employment in the country, respectively. Concerning employment forms, salaried employees made up the majority of the working population, while a little less than 30 percent were employers, self-employed, or people employed in family businesses. In addition, many Tunisians work in the informal sector, especially in the agricultural and non-manufacturing industries. According to government figures, the number of people engaging in informal activities exceeded 1.6 million in 2020, compared to around 1.9 million people with formal employment.Widespread unemployment especially among youth
The unemployment rate in Tunisia stood at around 16 percent in 2021. The COVID-19 pandemic exacerbated the unemployment rate in the country, which increased from approximately 15 percent in 2019 to 16.4 percent in 2020. Unemployment was higher among women, as a female unemployment rate of 20 percent was registered in 2021. However, it is the people aged 15 to 24 years that face the biggest hurdles in finding employment. In 2021, the youth unemployment rate in the county stood at around 37 percent. In recent years, it had peaked at 42.2 percent in 2011 during the Revolution, while it declined afterward. Among youth, the gender disparity is less pronounced compared to the overall rates. In general, unemployment levels are significantly higher among people holding higher educational degrees, mainly due to a skill mismatch between education and the job market’s needs.
