Sara Mohamed, a 23-year-old marketing executive, lost her job after a year due to her agency’s restructuring. She has now been out of work for six months.

She says she has been applying for jobs regularly, but hasn’t had any luck. Pointing out that most job seekers in Egypt now expect their search to take at least six months, she says, “The wait is not surprising, but it is disheartening.”

Let’s face it. There’s a hiring recession. The economic fallout from the Iran war has made things worse, with fewer jobs available and little market movement. And the job market freeze is not going to thaw anytime soon. 

When people lose their jobs and remain unemployed for longer periods, it becomes harder for them to return to work. These gaps can hurt their finances and often come with a stigma. Many employers expect candidates to explain any months or years spent out of the workforce.

An International Labor Organization report found that informal employment in the Arab States has grown by 36.1% since 2014, significantly outpacing the creation of formal jobs. At the same time, youth unemployment in the region was projected to reach 24.5% in 2024, among the highest rates globally. 

Because of economic uncertainty and changing job requirements, people are more concerned about finding steady, long-term jobs. It is becoming harder for many to find stable work.

CONTRIBUTING FACTORS 

Egypt’s labor market is facing pronounced oversaturation, with approximately 1.3 million young job seekers entering the workforce each year, against only around 500,000 new jobs created, resulting in a persistent annual employment gap.

Long-term unemployment across parts of the Middle East and North Africa (MENA) remains structurally high, often accounting for 15–25% of total unemployment, while youth unemployment exceeds 25–30% in several markets.

Ola ElKelany, a People & Culture expert and HR consultant, attributes this to a combination of factors, beginning with demographic pressure. The region is experiencing a large influx of young talent, representing more than 30–40% of the working-age population in many countries. Young workers are entering the labor market faster than jobs are being created.

There’s a widening skills mismatch, ElKelany adds, as employers increasingly seek digital, analytical, and AI-related capabilities. At the same time, much of the workforce remains aligned with more traditional or outdated job profiles. AI, in particular, is accelerating the transformation of roles, with positions being redefined or automated faster than reskilling systems can keep pace with. “Tasks in customer support, data processing, and even junior HR operations are now partially automated, compressing entry-level opportunities.”

She also notes that slow private-sector growth and reliance on only a few industries limit the number of new jobs created each year.

“A decade ago, losing a job meant leaving. Today, it means searching. Long-term visa options, such as the Golden Visa, have given professionals a pathway to stay,” says Nathalie Cooper, Managing Director and Career Counselor at Linkk Search and Consultancy. “Job loss no longer triggers an exit. It triggers a hunt. The result is a deeper, more competitive talent pool that is not going anywhere.

The challenge is also structural, Cooper adds, as every expatriate hire comes with tangible costs, including visa fees, medical insurance, relocation expenses, and end-of-service obligations. In a cautious market, she notes, some roles are quietly put on hold.

“When economic cycles turn and hiring freezes, available talent accumulates faster than demand. And even when budgets return, hiring decisions in this region are rarely fast. Approvals move slowly, and by the time a role is live, the window of urgency has often passed.”

POTENTIAL EMPLOYABILITY

Mohamed says that in the few interviews she has had, recruiters often ask about her current period of unemployment right away.

“While it’s not hard to explain, especially in Egypt, where most companies understand the job market, it’s still seen as a disadvantage,” she says. She explains that you are more likely to get hired if you are moving from another job than if you are unemployed.

Extended unemployment (12+ months) reduces the probability of re-employment by 30–50%, says Ola ElKelany, largely due to perceived skill atrophy and employer bias toward “active” candidates.

“Additionally, individuals returning to work after long gaps face 10–20% lower salary offers compared to their previous earnings, especially if they have not kept pace with evolving skill demands.”

In the UAE, the consequences of unemployment can extend beyond career disruption. “In most markets, unemployment is a financial setback. In the UAE, it can become a legal one,”  says Cooper, noting that residency is often tied to employment. As a result, prolonged job searches can affect visa status, banking access, and healthcare eligibility, and may even trigger overstay fines. “The pressure is unlike anything most Western markets impose.”

The gap itself is rarely the core issue. What tends to damage prospects is stagnation. “Twelve months out with nothing to show signals low initiative, which is exactly what hiring managers screen out,” Cooper adds. “And the longer someone is out, the more their network drifts. Contacts move on, relationships go cold, and the referral pipeline that drives most senior hiring quietly dries up.”

Confidence often declines over time. Candidates who have been out of work for extended periods may unintentionally undersell themselves in interviews, affecting both positioning and outcomes.

“Extended gaps erode negotiating power. People re-enter on below-market terms just to get back in, and that anchor affects every move that follows,” says Cooper.

ENSURING VISIBILITY

But maintaining professional visibility is important. Continued engagement with networks—such as reconnecting with former colleagues, attending industry events, and participating in online discussions—helps sustain relevance. Sharing insights, commenting on trends, or joining webinars can further reinforce professional presence.

“Most importantly, this period is positioned as an active phase rather than a pause. The combination of diversified income streams, continuous learning, and sustained visibility contributes to maintaining both financial stability and career direction,” says ElKelany.

Cooper says, “Professionally, do not disappear. The candidates who re-enter fastest never left the conversation.” Her advice for professionals is to post, comment, and engage on LinkedIn, share perspectives, and attend events, even virtually.

She also recommends taking on freelance, consulting, or interim work. “A CV showing continued contribution tells a very different story than a blank stretch of months.”

Cooper adds that using this time to learn new skills through courses or certifications shows progress and ongoing development.

Finally, she emphasizes the importance of meaningful networking. “Not mass connection requests. Real conversations with existing contacts, genuine curiosity about what others are working on. Opportunities come through people, not just job portals.

RE-ENTERING THE JOB MARKET

One of the most underestimated strategies is treating professional networks as active ecosystems rather than passive ones.

“Participation in industry talks, panel discussions, and community events, along with consistent engagement within established professional networks, creates access to opportunities that are not publicly advertised,” says ElKelany.

Reframing employment gaps as periods of intentional growth is equally important, whether through upskilling, freelance work, or industry engagement. Employers, ElKelany adds, are increasingly receptive to non-linear career paths when candidates demonstrate relevance and sustained momentum.

There’s a clear distinction between targeted, strategic career activity and unfocused job searching.

“If you have truly tried everything and the market is not responding, pivot,” says Cooper. “Identify what is actually in demand, find where your transferable skills intersect with that demand, and move toward it. Do not let your last title become a ceiling. Many of the most sought-after roles today did not exist five years ago.”

Learning relevant AI tools could also help, she adds. “The professionals who thrive will not be the ones who avoided disruption. They will be the ones who leaned into it.”