Paper short abstract:

Tunisia's neoliberal shift increased university graduates, shaping a precarious labour force. This paper argues there is a link between graduate precarity and widespread wage suppression, highlighting the impact of state policies on labour market dynamics.

Paper long abstract:

Tunisia's 1987 transition to neoliberalism required a pivotal shift in the technical composition of its working class, strategically aimed at enticing foreign capital through lowered labour costs. This paper contends that a key mechanism employed by the state to achieve this was the deliberate increase in the number of university graduates, as the economic conditions would not allow for the influx of a large number of highly-educated workers into the labour market. The glut of unemployed, precarious workers at the top of the wage scale would lower wages throughout the country.

Adopting an autonomist Marxist lens, this paper argues that the state needed to decompose an unruly working class. Thus, the state manipulated the technical composition of the working class by fostering a surplus of university graduates. This transformation, integral to the broader neoliberal agenda, relied heavily on changes in state policies. The paper draws data from unpublished data from Tunisia’s 7th, 8th, and 9th development plans, state reports, and insights from interviews with activists.

The research illuminates a critical linkage between the precarity experienced by unemployed university graduates and its impact on broader wage structures. By intentionally oversupplying the labour market with graduates, the state perpetuates a situation where desperation for employment suppresses wage demands across various sectors. This paper not only enriches discussions on the consequences of neoliberal policies on labour but also addresses the shifting workforce dynamics, emphasizing the interconnectedness of state policies, labour processes, and class dynamics in Tunisia.