Dying to work for the government

LIKE his fellow Tunisian, Muhammad Bouazizi, who set himself ablaze to protest against harassment by local officials in 2010, Ridha Yahyaoui was acting impulsively when he died on January 16th. Having just been refused a government job, the unemployed 28-year-old scaled a utility pole in Kasserine, an impoverished town in western Tunisia. He reportedly threatened suicide. Perched in the air, consumed by his grievances, Mr Yahyaoui touched the wires and was electrocuted.

Bouazizi’s death ignited protests that ended the dictatorship of Zine el-Abidine Ben Ali and inspired the Arab spring. Mr Yahyaoui’s is a reminder that democracy has yet to solve many of Tunisia’s problems. The government has struggled to kick-start an economy that still suffers from past abuse and persistent corruption. Islamist rebels in the west and several big terrorist attacks have added to its woes in the past year. Nidaa Tounes, the dominant political party, has recently fractured.

But a lack of jobs is the main reason that thousands of Tunisians have returned to the streets. The unemployment rate is over 15%, worse than before the revolution. Around a third of young people are out of work. In rural areas like Kasserine, jobs are extremely scarce. Much of the work available is suitable for low-skilled labourers; it takes graduates, such as Mr Yahyaoui, an average of six years to find a steady job. Half of all graduates are still unemployed at 35, according to the World Bank.

The unrest has only made things worse. Three British tour operators have cancelled all bookings to Tunisia until November. Tourism, which (directly and indirectly) accounts for about 15% of GDP and 14% of jobs, was already down due to two deadly attacks on foreign tourists last year. Dozens of hotels have closed for lack of guests.

The government has stepped in as the employer of last resort. Tens of thousands of workers have joined the public sector since 2010, raising the number employed by the government to over 600,000. Another 180,000 or so work for public companies, which have also been on a hiring spree. To placate Tunisia’s powerful unions, the government has raised salaries. The public-sector wage bill almost doubled between 2010 and 2014. It now accounts for over 13% of GDP, one of the highest shares in the world.

Not only is Tunisia’s public sector big, it is poorly run. A World Bank report notes that “the link between a public employee’s performance and her evaluation, compensation and promotion is weak, particularly since the revolution.” The wounded and other “martyrs of the revolution” are favoured for jobs. So are the unemployed, leading some Tunisians to shun work in the private sector. Public firms, meanwhile, are models of inefficiency. The Tunisian Chemical Group, cited in the report, increased its head count from 5,000 in 2010 to 16,000 in 2012, while production fell from 8m to 2.5m tonnes.

Despite its wage bill, the government expects the budget deficit to fall to 3.9% this year. That is optimistic. Moody’s, a credit-rating agency, recently cut its growth forecast for Tunisia to 1.5%, and expects a deficit closer to 5%. International donors want Tunisia to prune the public sector and spend its money more wisely. The government is already cutting subsidies on items such as fuel. But there is also concern about the stability of this lone Arab-spring success story. France recently promised €1 billion ($1.1 billion) in aid over the next five years.

To appease protesters, the government announced on January 20th that it would hire 5,000 young people in Kasserine, though it is actually only offering job training. “We do not have a magic wand to give a job to everyone at the same time,” says Habib Essid, the prime minister. That hard truth has not gone down well in Tunisia.