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How megaprojects mitigated COVID-19 impact on Egypt’s labor market

The coronavirus pandemic has increased the unemployment rate, but the impact could have been worse without the infrastructure overhaul.
TOPSHOT - This picture taken on March 13, 2020 shows an aerial view of ongoing construction development at Egypt's "New Administrative Capital" megaproject, some 45 kilometres east of Cairo. (Photo by Khaled DESOUKI / AFP) (Photo by KHALED DESOUKI/AFP via Getty Images)

The repercussions of the coronavirus pandemic has escalated Egypt’s unemployment rate to a two-year high, standing at 9.6% of the total workforce in the second quarter of 2020, up from 7.7% in the first quarter, the state-run Central Agency for Public Mobilization and Statistics (CAPMAS) said in a statement Aug. 17.

CAPMAS ascribed the increase to the anti-coronavirus measures taken by the authorities such as the shutdown of schools, the suspension of flights, partial closing of shops and the night curfew.

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