An international survey has found sharp job losses, falling incomes and growing job insecurity in Lebanon, where the crisis and war have badly disrupted the labor market and underscored the need to put employment at the heart of recovery efforts.
The crisis and war are not only destroying buildings and infrastructure, but also jobs, incomes, and the fragile foundations of many people’s lives, said Dr. Ruba Jaradat, the International Labor Organization’s regional director for Arab States.
The field survey found that about one-third of private-sector workers had lost their jobs. Average labor income is estimated to have dropped by 40.4% when job losses and wage cuts are combined.
The ILO report, prepared in partnership with the General Labor Confederation and the National Federation of Workers’ and Employees’ Trade Unions in Lebanon, found that 33% of surveyed private-sector workers were no longer employed at the time of the survey. Of those, 28.2% had become unemployed and 4.7% had left the labor force.
The survey was carried out in May and covered 2,485 wage workers and self-employed workers in the private sector, across different activities, sectors and governorates. All had been working before the renewed armed conflict between Hezbollah and Israel in March.
Job losses were most severe in conflict-hit areas of southern Lebanon. They reached 76.5% among residents of Nabatieh governorate and 43.2% among residents of South governorate. But the damage was not confined to frontline areas, with workers elsewhere also hit by weak demand, lower business activity, inflationary pressure and wider market disruption.
Displacement
Displacement, which has affected more than one million people, was a key driver of job losses. The rate rose to an average of two-thirds among displaced workers. Among surveyed workers who were still displaced at the time of the survey, 37.4% said they were out of work, while 14.2% said they had been displaced during the conflict and later returned home.
The report said the crisis hit hardest those already facing deeper vulnerability. Job loss was especially high among persons with disabilities, at 71.4%; women, at 44.3%; young people aged 15 to 24, at 42.4%; Syrian refugees, at 39.4%; and wage workers in informal jobs, at 37.7%. Workers without written contracts, those with lower education levels and those employed by small enterprises were also more likely to lose their jobs.
Average labor income falls
The impact went beyond job losses. Average labor income fell 14.8% among workers who kept their jobs. Across all surveyed individuals, average labor income is estimated to have fallen 40.4% when the total loss of income among those who lost their jobs is included.
Workers who found new jobs often accepted worse terms. On average, they earned 30.7% less than before, with most moving into informal work or self-employment.
Households relied heavily on their own resources to cope. Savings were the most common coping tool, while more than 40% of Lebanese, Syrian and Palestinian workers said they had delayed paying loans or bills. Many also cut food spending, pointing to growing pressure on household welfare and food security.
Recovery needs remain large. About 45.5% of survey participants said help finding stable work was their main need, while 37.7% said they needed support to secure higher or more regular income.
The report called for a response that combines humanitarian measures and immediate labor market action with longer-term investment in job creation, social protection, skills development, enterprise recovery and decent work.
It urged labor-intensive recovery programs, targeted wage support, emergency assistance for women, persons with disabilities, self-employed workers and micro, small and medium-sized enterprises. It also called for wider social protection, legal support for migrant domestic workers and stronger labor market governance.
In the medium and long term, the report recommended stronger labor market data systems, activation of the National Employment Office, local economic development approaches, investment in skills and vocational training, support for a gradual shift to the formal economy, unemployment protection and a comprehensive national employment policy.
The ILO said it is working with the government, employers, workers and partners to support Lebanon’s labor market recovery.
Its work includes protecting workers, supporting income and employment, strengthening social protection, producing reliable and up-to-date data and analysis, helping enterprises retain workers, and ensuring the most vulnerable groups are not pushed further into informal work, poverty and exclusion.
