This chapter explores the employment performance and capacities of the Tunisian private sector. The analysis relies mainly on data from the annual enterprise surveys and on the TLMPS 2014 data. The size and the structure of the Tunisian labor market are analyzed, showing that the creation of more jobs requires the private sector to invest more, especially in new technologies. The private sector must increase its share in the economy and improve its competitiveness internationally. The intra- and inter-sectoral allocation of employment and variation of labor productivity are described, analyzing the capacity of the economy to improve the quality of labor demand and absorb highly educated young people. The link between firm size and labor demand is also analyzed, showing the need for a new industrial structure with a bigger share of larger and more dynamic enterprises.
Economic Transition and Private-Sector Labor Demand: Evidence from Urban China