ALGIERS-(MaraviPost)-Algeria’s President Abdelmadjid Tebboune has announced that unemployed youths will be receiving unemployment compensation of US$100 monthly amid increase unemployment rates in the country.

The president made the announcement on Tuesday stating that the purpose of the initiative is to preserve young people’s dignity.

The job seekers aged 19 to 40 who qualify will get monthly payments of around $100 (£73) and certain medical benefits starting March this year until they find work.

A portion of 2022 budget in the country has been dedicated to youth payments to cover over 600,000 people who are jobless, Africanews reported.

The allowance is equivalent to nearly two-thirds the minimum wage of 20,000 dinars ($142) in the country.

In addition, Tebboune also said taxes on consumer products for beneficiaries will also be suspended.

The announcement comes just three months after the country’s lawmakers voted to scrap generous state subsidies on basic goods

The country situated in the Northern Africa is the first outside of Europe to introduce such initiative. With a population of around 45 million people, Algeria is Africa’s largest gas exporter, and hydrocarbons account for roughly 90% of the country’s government revenue.