Libya has witnessed a sharp rise in unemployment over recent years, highlighting a deepening economic crisis and structural imbalances in the job market. Data from the Labour Ministry under the Government of National Unity (GNU) revealed that 241,000 Libyans are currently seeking employment, a drastic increase compared to previous years.
The crisis has been worsening over time, with unemployed individuals rising from 42,800 in 2017 to 115,000 in 2018, before surpassing 161,000 in 2020. This rapid escalation over the past eight years points to ineffective economic policies, particularly as government hiring has been frozen since 2020. The western region recorded the highest unemployment rate at 41%, exposing stark geographical disparities in job availability.
Libya’s oil-dependent economy has failed to generate sufficient jobs in other productive sectors. Despite 2.1 million public sector employees, unemployment continues to soar, exacerbating “hidden unemployment,” where many government workers receive salaries without contributing to actual productivity.
Every year, 20,000 graduates enter the Libyan job market, but their qualifications do not align with the country’s labour demands. Reports indicate that most job seekers hold degrees in natural sciences, statistics, and sports, fields that struggling businesses cannot absorb. This mismatch between education and market needs underscores the urgent need for a policy overhaul in Libya’s educational system.
According to Administrative Control Authority Chief Abdulla Gadirboh, the government wage bill surged from 21 billion dinars in 2020 to 67 billion dinars by the end of 2024, despite the public hiring freeze. This increase highlights poor financial management and the lack of a clear strategy to curb unnecessary spending.
Experts argue that the solution lies in launching large-scale economic projects that create sustainable jobs, rather than relying on the bloated public sector. A five-year strategic plan focusing on industrial expansion, investment incentives, and workforce training is crucial to reviving Libya’s job market.
Failure to address the growing unemployment crisis could trigger severe socio-economic consequences, making it imperative for policymakers to act before joblessness becomes a ticking time bomb threatening the country’s stability.
