Unemployment Insurance in Algeria: Help or Hindrance?

The issue of employment has become a crucial one in Algeria. Not only does the economy no longer offer opportunities for jobseekers; economic reforms have led to countless public‐sector businesses being wound up, putting thousands of people out of work. Against this background, a system of temporary unemployment benefits has been introduced, though its effectiveness has been sharply criticized. How many of the occupations targeted by the legislation setting up the system are actually covered by Algeria's unemployment insurance system, and on what terms? What obstacles are there to the full realization of this system's objectives, and how effective is it in an economic and financial sense? The unemployment insurance system is traditionally accused of clogging up the machinery of employment and preventing a return to a competitive labour market. There are also those who believe that this system helps to foster voluntary unemployment and encourages people to spend more time on leisure pursuits. Our article considers all these views. At the end the reader will also find brief details of unemployment insurance in South Africa and Egypt.