Algeria One of Africa’s First to Pay Jobless as Oil Income Soars

ALGIER (Capital Markets in Africa) – Algeria became one of the first countries in Africa to start a permanent unemployment-benefits program for its young population, as surging energy prices give the OPEC member more firepower to tackle social unrest.
About 580,000 job-seekers between 19 and 40 years of age are eligible to collect monthly payments of 13,000 dinars ($91) from the state starting Monday, according to the National Employment Agency. 

While a tiny fraction of the total jobless in the North African nation of 44 million people, that number is set to increase. It marks one of the clearest bids yet by authorities to address simmering economic discontent that’s fueled three years of sporadic protests against Algeria’s ruling elite.

“I’ve been unemployed for five years and have no income,” said Fatiha, a 25-year-old masters graduate in biology who was lining up Monday at a post office in the center of Algiers, the capital. “This payment is certainly very welcome, but I’d prefer to have a job with a good salary to help my family.”

Soaring oil and gas prices spurred by the Russian invasion of Ukraine are temporarily giving more fiscal leeway for the former French colony. Hit hard by 2014’s oil-price crash, Algeria had been finding it increasingly difficult to fund its budget, with declining international reserves projected by the International Monetary Fund to reach critical levels in 2026.

The new benefits have attracted more than 1 million applications, which the employment agency says are still being assessed. To qualify, an applicant needs to prove they’ve never had a work contract with a company and are actively looking for employment. They also need to show they haven’t received benefits from another state aid program, haven’t rejected more than two job offers, and — if married — that their spouse has no income.

While official figures show unemployment at about 11% for the past decade, that jumps to 26% for young Algerians, according to a report by the United Nations Children’s Fund co-authored by an Algerian economic advisory council. It also showed 91% of young women are jobless.

“This bonus is our right” but not enough, said Walid, an unemployed bricklayer who picked up his allowance Monday. “I am married and have two children. I would have liked it to be accompanied by health coverage.”

Source: Bloomberg Business News

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