Key Insights

Population growth stabilizes at 1.2% annually

Algeria's population reached 45.6 million in 2024, with growth rate declining from 1.8% in 2010 to 1.2% today. This signals an advanced stage of demographic transition, with fertility rates approaching replacement level.

Policy Implications

• Reduced pressure on education and healthcare infrastructure growth
• Shifting focus to quality of services rather than capacity expansion
• Emerging challenges of an aging population within 20 years
• Window of opportunity for economic growth with favorable dependency ratio

Non-hydrocarbon sectors now drive economic growth

For the first time, hydrocarbons represent less than 20% of GDP, down from 36% in 2011. Services and construction contributed over 60% of growth in 2024, marking a significant structural shift.

Policy Implications

• Reduced vulnerability to oil price shocks
• Job creation improving in labor-intensive sectors
• Fiscal dependency on hydrocarbons remains (60% of revenues)
• Export diversification still a major challenge (93% hydrocarbon exports)

Youth unemployment remains at critical levels

Despite overall unemployment declining to 12.5%, youth unemployment (15-24) persists at 26.4%. University graduates face 30% unemployment, indicating a severe skills-jobs mismatch.

Policy Implications

• Social stability concerns with large unemployed youth cohort
• Brain drain as skilled workers seek opportunities abroad
• Need for education reform to align with labor market needs
• Entrepreneurship and SME development as potential solutions

Healthcare outcomes improving despite challenges

Life expectancy reached 77.8 years, infant mortality fell to 13.9 per 1,000, and near-universal vaccination coverage achieved. These gains reflect sustained healthcare investment.

Policy Implications

• Aging population will increase chronic disease burden
• Need to shift focus to non-communicable disease prevention
• Healthcare workforce distribution remains uneven
• Cost pressures mounting as population ages

Education system achieves near-universal access

Primary enrollment reached 98.5%, literacy rose to 84%, and higher education enrollment nearly doubled since 2010. Women now represent 61% of university students.

Policy Implications

• Focus shifting from access to quality
• Gender parity achieved in educational attainment
• Graduate employability remains major concern
• Technical and vocational education underdeveloped