New analysis on Lebanese labor market: the problem of unemployment is structural

The German Center published an analytical study on the Lebanese labor market based on findings of a World Bank study which revealed that the required jobs in the country are mostly centered around the technical, professional and administrative sectors. According to the study, the argument of absence of harmony between the needed and offered skills is quite weak. Certain sectors, the study analyzed, boast development competences to accommodate a larger workforce, like for example: agriculture, construction and real estate, transportation and logistics, banking and finance, tourism and hospitality, health, IT, communication and the media, fashion and jewellery, renewable energy and waste recycling industries. These sectors which currently employ around 50% of the labor force and are responsible for nearly 50% of the gross domestic product, yet, given their demanding nature, have potential to accommodate more. The study stressed the importance of small enterprises as they represent closely 90% of the registered companies and influence the lives of half of the declared employees in the country. Moreover, the study continued, in the absence of focused or specialized incentives for the small and medium enterprises, an informal labor market has emerged. As such, figures have shown an increasing participation in the labor market of the population residing in Lebanon, excluding university graduates. The study further raised questions whether the cause is the Lebanese ‘immigration model” or the lack of motivation or incentives in the labor market or a combination of both. Besides, the study maintained, the domestic labor market simply does not generate sufficient employment prospects, and during the coming decade, some 23 thousand job seekers are expected to enter the market annually, at a time the number of jobs created during the past 10 years did not exceed 12 to 15 thousand jobs (!?). Finally, while noting that the growing aspirations by women for work require creating more job opportunities, the solution should address the structural problem in the labor market and the factors that affect the existing unemployment trend, the study cautioned, concluding that proposals for resolving the problem should not be limited to the control of the labor market. (Al Akhbar, September 8, 2016)

 

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