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Lebanon

Policy Brief # 3: Untapping Potential in Lebanon’s Employment Crisis

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BACKGROUND: COVID, ECONOMIC CRISIS & DEEPENING POVERTY

Lebanon stands at the intersection of an economic, financial and health crisis, the magnitude of which has had calamitous consequences on all sectors of the economy. Looking particularly at the livelihoods sector, the job loss has been massive, combined with an extreme reduction in the purchasing power of the local currency that has surpassed 80 per cent1.

This huge deterioration in living conditions has negatively impacted all social standings; however, the already vulnerable households in both the Lebanese and refugee communities have been particularly severely hit.
Unemployment has risen substantially since the start of the crisis in October 2019, causing 20 per cent of workers to lose their jobs and 61 per cent of firms to reduce their workforce2. The difficulties of securing a job and decent working conditions likely feature among the primary reasons leading members of the Lebanese workforce to migrate.

According to The Crisis Observatory at the American University of Beirut, an extensive emigration of skilled professionals was under way in 2021; in addition, 77 per cent of youth residing in Lebanon wanted to leave. The Crisis Observatory warned of a mass emigration wave hitting the country as a result3.

Information International, a research center in Lebanon, had estimated that a total of 875,000 people left the country between 2019 and 2022, compared to 600,000 between 1992 and 20184.

The outflow of well-educated and skilled Lebanese has resulted in a less-educated domestic workforce, which has encouraged the expansion of low productivity economic activities in the country.
Lebanon is currently home to around 6 million Lebanese and non-Lebanese residents, 44 per cent under the age of 24, a relatively high youth percentage compared to the global average. Businesses have faced temporary and permanent closures since spring 2020 due to continued supply chain disruptions and reduced business traffic5. The youth unemployment rate was 23.3 per cent prior to the crisis and has increased to almost 48 per cent in 2022, as estimated by the International Labour Organization (ILO)6. Rates of unemployment and underemployment among young people whose employment prospects are more sensitive to changes in demand, are expected to rise, with additional challenges faced by young women7.

The economic challenges facing the country are plunging families into increasingly dire circumstances, with the most vulnerable at acute risk. According to latest findings from the Acute Food Insecurity analysis (IPC, May-October 2023), 21 per cent of the Lebanese population corresponding to about 806,000 people, and 36 percent of the Syrian refugee population corresponding to 540,000 people were estimated to be in crisis levels of hunger requiring urgent humanitarian action8. Of particular concern, the situation of 59,000 (2 percent) Lebanese residents and 48,000 (3 percent) Syrian refugees at emergency levels of hunger9.

Against this background, coupled with the current governance crisis in Lebanon which means the Government is not able to fulfil many aspects of its role in social protection, non-governmental organisations continue to increase efforts to support youth to access livelihood opportunities.

These organizations play a vital role in filling the gaps left by the government, ensuring that young people, who are often disproportionately affected by such crises, have access to essential resources and opportunities. Sustainable Social Protection and Livelihood Solutions for Severely Vulnerable Households in Lebanon” is a project funded by EU Madad and implemented by the INMAA consortium10.

This paper explores the main barriers youth are currently facing in the labour market and summarises the learnings from the INMAA consortium’s programs in both vocational training and entrepreneurship training. It highlights the importance of addressing employment and upskilling of youth in the context of shrinking labour market demands and the mismatch between the skills supply and demand. It aims to set out recommendations, to policy makers and operational actors working to support youth and caregivers in Lebanon. It also includes recommendations from youth participants in INMAA’s projects, directed towards fellow youth, which can also be used to inform best-practice ways in which civil society can support youth with peer-to-peer support, as well as their reflections on what support they need most.