From Traditional to Tech-Driven: The Remaking of Egyptian Labor Market

Updated 4/29/2025 8:00:00 AM

Arab Finance: Egypt’s labor market is undergoing a structural transformation as technology and automation continue to reshape employment patterns, phasing out routine roles while generating new, digitally-driven opportunities. The shift is pushing both public and private sectors to invest in digital education and reskilling to prepare for a tech-oriented economy.

Impact of Technology and Automation

Artificial intelligence has become a core tool in both industrial and institutional settings. It is enhancing manufacturing productivity and streamlining operations in HR, finance, and other key functions. But as AI integrates deeper into business processes, concerns are rising over job displacement and widening socio-economic disparities.

Heba Youssef, Senior Economist, tells Arab Finance: “Automation is starting to transform jobs in Egypt. It is gradually eliminating routine tasks, but on the other hand, it is creating demand for tech-savvy work. AI integrations are reshaping key industries—from finance, healthcare, and logistics—forcing workers to adjust. While this shift has also created a skills gap, there is a strong need for digital education and reskilling.”

Generative AI is expected to lead to modest overall employment losses, but with concentrated impact in specific sectors. Clerical support roles—such as receptionists, customer service representatives, and secretaries—are among the most vulnerable, particularly affecting women who occupy a large share of these positions. According to the International Labor Organization, women are 2.5 times more at risk from automation-driven job displacement compared to men.

Egypt reached 2.13 million people during the fourth quarter (Q4) 2024, compared to 2.159 million in Q4 2023. This includes 1.088 million unemployed females in Q4 2024, compared to 994,000 in Q4 2023, according to the Central Agency for Public Mobilization and Statistics’ (CAPMAS) Quarterly Bulletin Labor Force Survey Q4 2024.

Meanwhile, Youssef points out that “the sectors that will get the biggest hit by automation and will experience huge job displacement are likely to revolve around manufacturing, retail, and banking. Jobs such as factory workers, cashiers, customer service representatives, and bank tellers are threatened as AI and robotics replace repetitive tasks.”

On the other hand, “emerging sectors with growing potential include ICT, renewable energy, and fintech. These sectors are expected to create a substantial number of jobs. Cloud IT, AI, cybersecurity, and software development will remain highly sought after, while green energy initiatives and digital financial services are set to pave new career pathways,” according to Youssef.

Developing the Future Skills Landscape

Amidst the AI and automation revolution, several skills will be essential for the Egyptian labor market. Lamia Nabil, an HR Manager, explains that among the skills that will be most in demand by Egyptian employers are “cyber security skills, AI skills, IT skills, data analysis skills, analytical thinking and innovation, as well as robotics.”

In order to prepare for this future, “Egypt is trying to invade the AI world by opening a new faculty in the universities that will enable students to study AI from scratch. It is a good step that the Egyptian market will need. I think there shall be more faculties or training courses that focus more on the AI skills and the IT and cybersecurity skills in general,” Nabil points out.

In terms of having specialized training programs in areas like AI and robotics, Nabil says that “these training courses must be obligatory in schools and universities to get the best results. The major challenge in this issue is to have the right tutors, and I think we don't have ones.”

Yet, the development of skills suitable for a tech-driven future does not only fall on the government or the organizations and firms, but it also falls on the shoulders of the individual. Nabil highlights, “I believe that self-development comes from the inner side of any individual. So, employees shall have the urge to develop themselves to go side by side with the new trends that AI has in all industries.”

The integration of technology and automation is undeniably reshaping the Egyptian labor market, presenting a dual challenge of job displacement in routine sectors and the emergence of new, tech-centric opportunities. Addressing the skills gap through strategic investments in digital education, the establishment of specialized training programs in areas like AI and robotics, and fostering a culture of continuous self-development among individuals are crucial imperatives.

By Sarah Samir