The Financial Depth and Labor Market Stability in Egypt - During period (1991-2020)

As a result of the tendency of most countries in the world to provide financial depth as one of the channels for raising economic growth rates, which increases investment and reduces unemployment rates in them. This, in turn, helps stabilize the labor market and provide different standards for decent work. Although many researches have tended to study the role of financial depth in improving economic growth rates, there has not been sufficient interest in examining the impact of financial depth on the labor market. Therefore, this research comes to study the role of financial depth in achieving stability in the labor market and improving its conditions in Egypt. This research aims to identify the strength of the relationship between financial depth and the stability of the labor market in Egypt by analyzing the research hypothesis, which is: “Providing financial depth in Egypt leads to achieving stability in the labor market and improving its conditions there”. Therefore, it used some studies that dealt with the financial depth and the labor market in Egypt to analyze the relationship between them.
The relationship between the research variables was tested using annual data in one country, which is Egypt, using a linear regression model using the ordinary least squares (OLS) method during the period (1991-2020). The results indicated a significant impact of the negative relationship between financial depth on unemployment (labor market stability index) in Egypt. Thus, the research concluded that providing financial depth in the Egyptian financial market helps achieve stability in the labor market and improve its conditions. Accordingly, the research presented many recommendations.