As Egyptians head to the polls, the most serious challenge facing the new government is to tackle the chronic lack of jobs.
Unemployment has gone up by a third to more than 12 per cent since the revolution that toppled Hosni Mubarak from the presidency in February last year, and the challenge continues to grow.
Few can argue that unemployment and underemployment were not catalysts, if not direct causes, of the Arab Spring.
The unrest itself was triggered by the self-immolation of a young Tunisian unable to make a decent living. Across the region, it spread from the poorer regions, before more affluent regions joined in as momentum picked up. Also in Egypt, where the protests may not have directly started in the country's poorest parts, they did occur in areas where corruption was most acutely felt.
That corruption stifled any chance of a genuine liberalisation of the economy and the development of a private sector-led job creation. The result was rampant youth unemployment.
The numbers are staggering: 80 per cent of unemployed Egyptians are under 30 years old and more than 90 per cent have secondary school or university education. It is estimated that there is an annual job deficit of 500,000 for those entering the job market.
In other words, more than half a million jobs have to be created in Egypt every year, simply to maintain current employment levels. Millions of additional jobs are needed to reduce these levels. Youth unemployment has been a chronic feature of the economy since the early 1990s, when Egypt embarked on a broader package of IMF-sponsored structural adjustment reforms to liberalise its economy and increase the competitiveness of the labour market. The state would employ fewer public-sector workers.
The reforms were accompanied by a steep rise in corruption that almost became institutionalised in the old regime.
This prevented the private sector from flourishing and filling the gaps that were to be generated by the reforms.
The running sore of economic corruption manifested by rising youth unemployment seeped into Cairo's Tahrir Square and the streets of Egypt for all to see. The challenges facing the new administration are enormous. Unpopular decisions will be needed. Key will be the willingness to adapt policies as conditions internally and externally change. What is needed is a multi-prong and multi-stage approach that addresses the long-term and more immediate needs.
The uprising has already had one vital achievement: the disappearance of rampant corruption.
Despite a rise in unemployment, green shoots of recovery, particularly in the small and medium enterprise sector are already noticeable, as banks report continually rising activity. Small and medium enterprises will be the main driver of job creation. The early successes should be built on.
Orderly sequencing of reforms should begin in earnest. They must focus on creating fair employment. Immediate job creation through intensive government spending may be necessary but must not undermine the economy's longer-term prospects.
Economic liberalisation coupled with formalising the underground sectors of the economy can ensure a fair deal. Revitalisation of trade unions will allow them to collaborate with the government to ensure stability of the job sector without undermining competitiveness.
The new government should do all it can to attract regional and foreign investment. It needs to make a strong case for why investing in Egypt is economically viable. The government and private sector as well as regional and international stakeholders have roles to play.
Egyptians have to be convincing about their country's competitiveness, and international investors should look beyond immediate investment returns.
Skills and education remain the biggest long-term challenge. The educational system needs fundamental reform.
Calls for adapting the labour force to perceived market needs risk dumbing down the population and could lead to future phases of unemployment that are more difficult to address.
The youth bulge and youth unemployment are a potent combination. They have already demonstrated that they are major drivers for Egypt's future. The onus is ultimately on Egyptians to demonstrate that investing in the country is a wise decision.
Ghanem Nuseibeh is the founder of Cornerstone Global Associates and a senior analyst at Political Capital