The effect of financial crisis on hiring and separation rates : evidence from Tunisian labor market

Abstract EN

The goal of this paper is to investigate the effects of the global financial crisis on the employment conditions in Tunisia.

This is a comprehensive study of the Tunisian labor market as it applies to job creation and job loss.

Comparison is made to the period before the 2008 financial crisis with a study of the aftermath of the crisis.

The key findings of this analysis pose an interesting viewpoint not only about the vulnerability of the Tunisian labor market to a global slowdown, but also the deeper composition and reasoning that lie behind typical labor statistics.

This paper uncovers the underlying conditions of the market and how it responds to external shocks such as the 2008 crisis.

The paper investigates the fact that the higher educated are the hardest hit during a downturn as they remain in the unemployment count while actively seeking employment.

We also find that there are many reasons behind labor force participation such as working conditions, pay, sector outlook, and other factors of underemployment.

Furthermore, the issue of emigration amidst a global slowdown is pivotal as many Tunisians simply return home.

Lastly, the response of the Tunisian government is analyzed with some pointers for combative labor policy.