From March 2022, an unemployment benefit will be granted to young people in Algeria to help the population cope with daily life. This Algerian government initiative concerns 620,000 young jobseekers aged between 19 and 40.
For the first time since its accession to national sovereignty, Algeria is taking a courageous decision to fight unemployment: granting unemployment benefits to young job seekers. Not only unemployment benefit but also the suspension of certain taxes on consumer goods. Algeria will “institute an unemployment allowance in the form of a pre-salary in order to preserve the dignity of young people”, said the president of the republic in a media interview.
Announced on 8 August, this reform for the benefit of Algerian youth was adopted by the Council of Ministers on 22 August. In this regard, the Head of State, Abdelmajid Tebboune, revealed that the unemployment benefit is 13,000 Algerian dinars or 90 US dollars. It will be paid to beneficiaries from March. Already budgeted for in the 2022 finance law, it will guarantee the dignity of the young unemployed, as it will allow them to receive a sort of mini-salary, given that the guaranteed minimum wage (Smig) in Algeria is 20,000 dinars (114 dollars). In addition, these young people will benefit from health coverage like the rest of the employees.
It should be noted that Algeria is one of the first African countries to introduce such an allowance. Candidates will therefore have to register with the National Employment Agency (ANEM). Similarly, the state has provided this support to the young people concerned until they find a job.
A tangible solution to unemployment in Algeria
The unemployment rate in Algeria is around 11%. Therefore, the entry into force of this measure will have a significant impact on these figures. Indeed, highly dependent on its hydrocarbons, the country is struggling to recover from the collapse of prices since 2014 and to diversify its economy. Worst of all, the arrival of the Covid 19 crisis significantly reduced economic activity and led, among other things, to the unemployment of whole contingents of workers in many sectors and industries. If nothing is done, the unemployment curve will continue to rise, reaching 19% in 2026, according to the International Monetary Fund (IMF). For President Abdelmajid Tebboune, there are three categories of unemployed in Algeria: “the first is a sort of assemblage of young people and adults taken care of by the Ministry of National Solidarity, the second represents young people waiting to be integrated, and the third category embodies the real unemployed. This measure is certain to reduce as much as possible the acts of crime, theft, prostitution and many other vices that young people indulge in to support themselves.
