CHAPTER 1
Introduction
The state of national labor markets has always been a concern for governments and development agencies such as the World Bank. Key labor market indicators, such as the rate of unemployment, send signals about the health of an economy and mirror citizens’ attitudes. Being gainfully employed is an important aspect of an individual’s well-being both financially and socially, as “initial failures in finding a job can lead to persistent joblessness, a loss of interest in further schooling, delayed family formation, mental distress, and negative manifestations of citizenship” (World Bank 2007). Importantly, high unemployment tends to increase the risk of violence, and unemployment and idleness are the most cited reasons for young people to join gangs and rebel groups (World Bank 2011a). The Arab Spring events of 2011 brought to the fore concerns about high unemployment, especially among the youth in the countries of the Middle East and North Africa (MENA). This region is facing daunting employment challenges. The unemployment rate in MENA has been higher than in any other region in the world, and has been especially high among youth (World Bank 2004). At the same time, the labor force has been growing at a rapid pace—the consequence of relatively high population growth over the years and also increasing female labor force participation. Reforms intended at improving the competitiveness and the investment climate of MENA economies and strengthening the employability 1