Economy

Shocking Report: Unemployment in Lebanon Rises from 11.4% in 2018 to 29.6% in 2022

Shocking Report: Unemployment in Lebanon Rises from 11.4% in 2018 to 29.6% in 2022

Unemployment existed in Lebanon before the October 17 revolution and the economic and financial crisis that annihilated many businesses and institutions, as well as before the COVID-19 pandemic, but not to the alarming extent we witness today. The findings in the report issued by the Central Administration of Statistics and the International Labour Organization indicate the following: "The unemployment rate in Lebanon rose from 11.4% in the period between 2018 and 2019 to 29.6% in January 2022, signifying that one-third of the active workforce was unemployed at the beginning of this year."

The study notes that "the unemployment rate among women is higher than that of men. Additionally, the unemployment rate among youth has increased from 23.3% to 47.8%, and the labor force participation rate has declined from 48.8% to 43.4% (by 'labor force,' we mean those employed plus those unemployed aged 15 and above), while the employment rate relative to the population has decreased from 43.3% to 30.6%." According to the survey involving a sample of 5,444 households from various governorates, informal employment, meaning jobs not adequately covered by formal arrangements and protection systems, now represents more than 60% of total employment in Lebanon. The survey also found that:

- "About half of the workforce and potential workforce have been underutilized—a term that refers to unemployment, as well as those available to work more hours than they actually do, or those who are not seeking work.

- 30% of the unemployed have been looking for work for more than two years, and 19% have been searching for between one and two years, indicating that nearly half of the unemployed in 2022 are from long-term unemployment that exceeds one year."

Many reasons have led to the unemployment rate reaching 30% in Lebanon, despite having some of the most significant and capable human resources. According to Dr. Ahmad Al-Dairani, head of the Lebanese Observatory for Workers' and Employees' Rights, "In addition to the financial and economic crisis in Lebanon and the COVID-19 pandemic that increased the number of unemployed, Lebanon's rentier economy, which relies on financial, banking, and real estate services, as well as tourism services, has inflated unemployment, as this type of economy cannot create enough job opportunities to cover all the workforce in Lebanon. Therefore, adopting a productive economy by revitalizing the agricultural sector and supporting the industrial sector and local industries can attract a larger number of Lebanese workers and reduce the dependency on foreign workers. Furthermore, the nature of the ruling system in Lebanon—the organized looting of the country's resources—has never been witnessed in Lebanon's history."

He believes that "it has become challenging today to begin finding solutions to the unemployment problem amid collapses. The educational sector, which is essential for individuals to find suitable job opportunities commensurate with their education level, is in ruins, and official examinations are threatened, as is the case for the Lebanese University and private schools, which have lost their teachers."

Returning to the survey conducted by the Central Administration of Statistics and the International Labour Organization, "When residents of Lebanon aged 15 and above were asked about their desire to migrate, more than half of them—52%—expressed a wish to leave Lebanon. Among age groups, the desire to migrate was highest among the youth, reaching 69% for those aged 15-24 and 66% for those aged 25-44, compared to only 10% among seniors aged 65 and above." Researcher Mohammed Shamseddine from the International Information Center indicates that "Job opportunities abroad have also become limited due to the negative impact left by the COVID-19 pandemic, making it difficult for those without a university degree or recent graduates lacking the necessary skills and experience to find job opportunities abroad."

According to the survey "the percentage of households receiving income from pensions and other social security benefits has decreased from 28% to 10%. 85% of households cannot withstand any period, even just one month, without losing all sources of income, while only a very few claimed they could survive for six months or more without income." Shamseddine believes that "there must be a fund for unemployed individuals, financed by imposing taxes on foreign workers operating within Lebanese territory, even though their number has decreased from 450,000 to 250,000. However, funding this fund could help provide aid to the unemployed during the initial period of unemployment (for at least six months until they find a job)."

In summary, if these figures do not spur those in positions of responsibility into action, Lebanon is heading towards increased poverty, hunger, unemployment, and chaos, and there must be movement before a significant social explosion occurs.

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