Libya has ranked second among Arab countries in unemployment rates in 2026, according to new data released by the International Labour Organization, highlighting deepening economic and social pressures despite the country’s vast natural resources.
The figures show that Libya recorded an unemployment rate of 17.3 percent, placing it just behind Jordan, which topped the list with 17.7 percent. The ranking reflects persistent structural challenges in Libya’s labor market, including political instability, limited private-sector growth, and heavy dependence on the public sector for employment.
According to the ILO data, Yemen ranked third with an unemployment rate of 16.4 percent, followed by Tunisia at 15.3 percent, and Iraq at 15 percent. Algeria recorded an unemployment rate of 11 percent, while Morocco stood at 8.8 percent. In contrast, Gulf countries continued to post significantly lower rates, with Saudi Arabia at 3.7 percent, Oman at 3.1 percent, and Kuwait recording the lowest unemployment rate in the Arab world at just 2 percent.
Libya’s high ranking underscores the widening gap between labor supply and job creation, particularly among young people and university graduates. Analysts note that years of political division and weak investment have limited the ability of the economy to generate sustainable employment opportunities, leaving large segments of the workforce either unemployed or dependent on temporary and informal jobs.
The data also reflects the broader challenge facing several Arab economies, where population growth continues to outpace job creation. However, Libya’s situation is considered more acute due to the disruption of state institutions, fluctuations in oil revenues, and the absence of a unified economic vision capable of translating resource wealth into inclusive growth.
Economists warn that sustained high unemployment poses serious risks to social stability, public finances, and long-term development. They stress the need for comprehensive labor market reforms, diversification away from oil dependence, support for small and medium-sized enterprises, and policies that encourage private-sector hiring.
