Evaluating the Role of Microcredit Program for Youth Employment Generation in Algeria

Reducing unemployment and achieving economic growth are the most important priorities of any nation. In case of Algeria, the persistence of high unemployment rates particularly among young graduates has been the major concern in the last decade. Here, microcredit program was introduced for reducing unemployment and the policy remains continuing. Government subsiding the microcredit organizations so much but there is a lack of study on the impact assessment of the program. Therefore, this study discusses the crucial role of microcredit institutions in raising employment and the acceleration of business start-ups by using national data and the statistics of microcredit institutions. Findings of the study show that reinforcing microcredit would produce an increase in the production activity and can change the structure of employment by sector, gender, types of employment. This study also recommends for further investigation with advance impact assessment tools like Input-Output model to assess the macro level impacts as well as sectoral job creation by disaggregating employment categories. This study will benefit the policy makers including microcredit authority, NGO, government and other local and international stakeholders.