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In 2023, the majority of the labor force in Algeria was working in the services sector. Since 2010, the services sector has employed around ** percent of the employees in the country. Employment rates by sector remained relatively stable in the period under review, with the industrial segment attracting approximately ** percent of the workforce.

Economic contribution versus employment

Interestingly, the employment distribution across sectors does not directly correlate with their contribution to Algeria's GDP. While services employ the majority of workers, the sector's economic output is proportionally smaller. In 2023, services accounted for percent of GDP, followed closely by industry at percent. Agriculture, despite employing the smallest share of workers, contributed a significant percent to the GDP. This disparity highlights the varying productivity levels across sectors and the outsized economic impact of Algeria's resource-intensive industries. 

A challenging labor market

The labor force in Algeria faces widespread unemployment. Specifically, finding a job is difficult for youth and women. In 2023, the youth unemployment rate was nearly ** percent, while ** percent of the female labor force was not employed. The highly educated population also represented the largest share of unemployed. Furthermore, high levels of informal employment in the country are a relevant concern for the labor market. Informality does not provide job security and even threatens the functioning of the formal sector. In recent times, secure employment has been more important than ever. According to government sources, at least ** jobs have been lost in the country in 2020 due to the coronavirus (COVID-19) pandemic.