Egypt's burgeoning economy is seeing a profound demographic shift that is quietly reshaping the foundations of its workforce. Generation Z, a large and a growing part of Egypt’s young population, is on the cusp of becoming the dominant force in the labor market. With so many Egyptians under 25, their projected entry into the workforce brings unparalleled dynamism, but it also presents unique challenges.

Unblocking Gen Z’s Potential

Generation Z, or Gen Z, are people born between 1996 and 2010, according to McKinsey & Company. That means they are now between 15 and 29 years old.

In Mid-2024, Egyptians aged 15 to 19 were 9.6 million, while people aged 20 to 24 were around 8.995 million, and those aged 25 to 29 were around 8.5 million. Egypt’s total population were 106.556 people, according to the Central Agency for Public Mobilization and Statistics’ (CAPMAS) 2024 Statistical Yearbook. Hence, Gen Z made up over 15% of the total population in Mid-2024.

It is crucial to include Gen Z in the workplace and consider what motivates them. Saber Shaker, an international economics professor at Helwan University’s Faculty of Commerce and a former consultant at UN-HABITAT and USAID, explains, “Egypt’s growing Gen Z workforce presents major economic opportunities in the next 5 to 10 years. They could boost productivity, entrepreneurship, and digital innovation, especially in sectors like fintech, e-commerce, and renewable energy.”

“However, challenges such as high youth unemployment, skill mismatches, and limited private sector capacity could hold back their potential. Addressing these through education reforms, startup support, and more flexible labor market policies is essential to harness this demographic dividend,” Shaker adds.

As the country moves forward with digital transformation, Gen Z can lead a promising digital future. “As digital natives, Egyptian Gen Z are naturally equipped to drive economic value in digital sectors, contributing to Egypt’s digital transformation strategies such as ‘Digital Egypt’,” he notes.

“Gen Z fluency with technology supports rapid growth in areas like AI, freelancing platforms, digital marketing, and app development, evidenced by success stories like Swvl and Yodawy. Their adaptability makes them ideal for roles in tech startups and innovation hubs, strengthening Egypt’s position in the MENA digital economy,” Shaker points out.

Decoding Gen Z's Core Workplace Expectations

To attract and keep Gen Z to the workplace, it is important to know what they really want and aspire. Ahmed, a fresh graduate with a bachelor’s degree in Hebrew Language and Literature, tells Arab Finance: “As a member of Gen Z in Egypt, my top three non-negotiable expectations from a potential employer are a decent salary, flexible work hours that allow work-life balance, and a good manager who helps me develop instead of just bossing me around.”

Meanwhile, Khaled, a 24-year-old trainer at an outsourcing company, tells Arab finance that when applying for a job, he looks for “a safe space for self-expression and active listening, a promising career development path, and appreciation.”

Gen Z talents also care about sustainability when choosing a job. Globally, over 72% of Gen Z workers consider an organization's environmental credentials and policies a critical factor in their employment decisions, according to a 2024 survey by the Wall Street Journal.

In Egypt, Gen Z may outweigh these concerns and be challenged by economic circumstances. Ahmed explains, “At the moment, a company's social and environmental impact does not really matter to me. I think it does not matter to many other Gen Z people because of economic pressures and our need to work to cover our day-to-day needs.”

The Looming Challenge of Aging Workforce

In 2023, around 7.372 million workers in Egypt were aged between 40 and 49, while 5.174 million were aged 50 to 59, and 1.337 million were aged 60 and above. Altogether, people aged 40 and above made up 44.6% of the total workforce, which was around 31.15 million people, according to CAPMAS’ 2023 Labor Force Combined Bulletin.

Therefore, hiring youth to avoid the challenge of an aging workforce is crucial. Shaker warns, “If businesses fail to integrate Gen Z and address aging workforce needs, Egypt risks higher unemployment, reduced productivity, and widening skill gaps.”

“This could lead to economic inefficiencies and strain on public resources, with estimates suggesting up to 2% annual gross domestic product (GDP) losses due to poor labor force alignment (ILO). Moreover, if youth are underutilized, they may turn to informal employment, which would weaken tax revenues and hinder sustainable economic growth,” he adds.

Generation Z is at the forefront of Egypt’s economic transformation. They represent both a powerful demographic engine and a critical challenge for policymakers and employers.

With over 15% of the population now aged 15 to 29, Gen Z’s integration into the workforce is not just a demographic inevitability, it is a strategic imperative for sustaining economic growth and innovation.

By Sarah Samir

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