Libya has recorded one of the highest unemployment rates in the Arab world, ranking third regionally according to new economic indicators published by Trading Economics. The latest data places Libya behind Jordan and Sudan, highlighting the scale of labour market challenges facing the country.
Jordan recorded the region’s highest unemployment rate at 21.3%, followed closely by Sudan at 20.8%. Libya came in third with 18.6%, while Yemen registered 17.1%. The figures underline persistent pressure on labour markets across several Arab countries affected by economic volatility, political instability, and limited job creation.
According to the platform’s assessment, the elevated unemployment levels stem from structural weaknesses in national economies, combined with inconsistent employment policies and sluggish development programmes. In countries such as Libya, these issues are compounded by years of conflict, fragmentation, and recurring economic shocks that continue to restrict growth and reduce opportunities for young people and job seekers.
Analysts say Libya’s labour market remains heavily influenced by public-sector dependency, limited private-sector diversification, and fluctuating oil revenues, all of which hinder sustainable employment. Economic recovery efforts, meanwhile, have been slowed by political divisions and an uneven business environment.
The report adds renewed urgency to calls for broader reforms aimed at boosting investment, empowering small and medium enterprises, and stabilising national economies to absorb a growing workforce. With youth unemployment particularly high across the region, economists warn that without targeted reforms and long-term development strategies, labour market pressures are likely to persist.