Tunisians are striving for the opportunity to realise their potential and aspirations in a country that is rich in both human and physical capital, but whose recent economic growth has failed to create enough opportunities in the form of good and productive jobs. This report highlights the main barriers that hinder the Tunisian labour market from providing income, protection, and prosperity to its citizens and proposes a set of labour policies that could facilitate the creation of better, more inclusive, and more productive jobs. The weak economic performance and insufficient and low-quality job creation in Tunisia is primarily the result of an economic environment permeated by distortions, barriers to competition, and excessive red tape, including in the labour market. This has resulted in the creation of a insufficient number of jobs, especially in the formal sector. To change this situation, policy makers need to address five strategic directives that can promote long-term inclusive growth and formality: foster competition; realign incentives, pay, and benefit packages in the public sector; move toward labour regulations that promote labour mobility and provide support to workers in periods of transition; enhance the productivity of informal workers through training and skills building; and reform existing social insurance systems and introduce new instruments to attain broader coverage.

Given the labor market challenges that countries in the Middle East and North Africa (MENA) region are facing---notably high unemployment, prevalence of skills mismatches, low labor market mobility, and lack of formal employment networks---employment services could be a relevant policy instrument to help unemployed individuals find jobs. Despite high and increasing unemployment rates, employers in the region have a hard time finding workers whose competences and skills fit their employment needs. This book first surveys international best practices for the delivery of employment services and then reviews the provision of these services in a selected group of countries in the MENA region, with a focus on public provision through existing public employment agencies. Findings indicate that public agencies in the region face many challenges to the effective delivery of employment programs---namely insufficient administrative capacity, system fragmentation, lack of governance and accountability, regulation bottlenecks, and flaws in program design. In order to help unemployed workers to obtain the competences required by available jobs, this study proposes a reform agenda based on the development of strong partnerships among public agencies, public providers, and employers for the design and implementation of flexible employment programs that respond to real employment needs. These partnershipss will need to be developed with strong governance mechanisms that make beneficiaries, private providers, and firms accountable for making sure that investments in employment programs lead to employment insertion. Building Effective Employment Programs for Unemployed Youth in the Middle East and North Africa will be a useful resource for policy makers, practitioners, economists, and anyone interested in international best practices for promoting a more effective delivery of employment services.