The Arab world has the highest youth unemployment rate in the world. But unemployment has not been caused by one problem. This articles shows 5 unemployed young men and women struggling to find work for a variety of reasons which include political instabilities, low investment into new projects, difficulty of finding a “wasta” and poor availability of finance. Many economic concepts can be linked such as low investment during periods of low confidence and market failure where the labour market equilibrium quantity is too low. There is a risk of brain drain in the Arab states in the long term if the youth unemployment rates remain high, for example Hashem Dogoosh who’s a bio-chemical science graduate is planning to look for work abroad.
Although the Purchasing Managers’ Index -PMI (An indicator of the economic health of the manufacturing sector) fell to 51.7 from 51.9, it beat expectations considering it was expected to fall below 50. At a quick glance Spain seemed to be rebounding from its recession as the service sector showed growth.
However, the actual picture is different. The PMI of France fell to an all-time low of 48 while Italy’s worsened to 48.8. There is also some split in the Eurozone with some countries improving and some worsening. Retail sales fell by a tiny amount. Overall the Eurozone shrank by 0.4%