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Between 2007 and 2017, 99 countries initiated reforms in labor regulations that affected World Bank Doing Business labor indicators. The most common topics for reforms are (i) procedural requirements in case of contract termination, and changes in notification arrangements; (ii) fixed-term contracts; (iii) severance payments; (iv) annual leave arrangements, and (v) working time arrangements. Approximately 48 percent of the reforms made labor legislation more flexible, and 52 percent enforced more worker protection. The objective of this study is to document these reforms, and identify key benchmarks in labor legislation by country groups.

The transformation of a society from socialism to a market economy, in addition to political and economic change, is accompanied by a socio-cultural transition of changing values, goals and social behavior by different groups in the population. It is also accompanied by a psychological transition from an overwhelming dependence of the people on the paternalistic state and its institutions, to individual choice, initiative and effort, and by substantial shifts in the demographic behavior of the population (Kuddo, 1995). The transitional crisis effects many aspects of people's everyday life, and demographic processes are a good indicator of such change.

Disruptive factors related to technology, market integration, and social and demographic change imply upcoming changes in the needs of the labor force. This study reviews the current approach to active labor market policies (ALMPs) globally and, based on the evidence and accounting for these factors, discusses desirable attributes for a resilient national active labor policy system, which covers universal access, tailored beneficiary service bundles, private sector linkages, using available technology, demand-driven skills training, measuring performance, social enterprises, and labor market demand side policy. Considering these attributes, we propose a public sector approach focused on supporting service providers rather than direct service provision. The approach revolves around: (i) Active Labor Policies (ALPs), referring to public expenditures on services aimed at improving the labor force's engagement in productive economic activity; (ii) Active Labor Policy Providers (ALPPs), referring to the entities that implement activities associated with ALPs; and (iii) the ALPP sector, referring to the set of existing ALPPs in a country. We also highlight potential actions by governments to transition into this model, such as contracting services out; service brokerage; service provider registries, accreditation, and incentives; integrated monitoring and evaluation systems; and aligning supply and demand side policy.

This note provides a general background of the main features of labor regulation in the Middle East and North Africa (MENA) and benchmarks them against international best practices. The note compiles information on available labor laws and other legal acts concerning employment protection regulation. Within the broader scope of labor regulation, and in order to assure regional comparability, information collected focuses on key issues in the labor law associated with commencing or terminating employment and during the period of employment (including maternity benefits). The main sources the data are the World Bank doing business 2010 and International Labour Organisation (ILO) databank. This note is a tool to provide policymakers and international organizations with a regional diagnose of how labor regulation affects labor market outcomes in MENA and inform client governments about strategic approaches to employment creation through labor policy and reform. This activity comes as a response to regional priorities in the context of the Arab World Initiative (AWI). One of the six strategic themes of the AWI focuses explicitly on employment creation as a top priority. Part of the World Bank's mandate under the AWI is to inform client governments about strategic approaches to employment creation through labor policy and reform.