Jobless rate expected to rise

23,000 new entrants each year

People of working age represent 47 percent of the overall local population (above 15 years), and around 11 percent of those who participate in the labor market are unemployed, said a World Bank report on the local labor market published late in March.

The report, ‘Lebanon Good Jobs Needed’, is the result of a three-year Technical Cooperation Program (TCP) with the government. The analysis is based on a recent survey of the labor force and employers.

The report shows that the local economy has grown by an average rate of 3.7 percent between the years 1997 and 2009 without creating any sufficient jobs. Informal jobs, which are not controlled by the State, make around 44 percent of the job market.

The report shows that the ratio of women’s participation in the job market is quite low, with around 70 percent of the labor force being men. The report forecasted that over the next ten years, an average of 23,000 new entrants will be added to the market each year. To absorb this number, the economy would need to create more than six times the number of jobs it is currently creating.

Fouad Zmokhol, President of the Lebanese Businessmen Association (RDCL) said: “There is a shortage of proficient employees in the local market. College graduates and professionals are seeking jobs abroad.” He said: “We encourage the opening of small and medium companies, who are the main drivers of the economy and are able to hire more employees.”

The report recommended allocating investments for infrastructure and improving the overall business environment. Zmokhol said: “Lebanon suffers from a shortage in investment policies and economic plans, which makes it lose big investment opportunities.”

The report suggested activating the labor market program by issuing polices that focus on improving the employability of current workers. Such a program needs to be regulated by the National Employment Office.