The Lebanese economic crisis continues with its negative repercussions on various sectors, causing the unemployment rate in Lebanon to increase by about fivefold.
This is amidst the prevailing living turmoil in the country, along with the collapse of the local currency, rising inflation rates, and the deterioration of purchasing power for many Lebanese, especially after numerous companies and institutions faced financial difficulties, leading them to reduce employee numbers, lay off some of them, and cut salaries.
This article was originally published in, translated from the Lebanese newspaper Addiyar.
These reasons have led to increased unemployment and worsening living and social conditions to the point where securing basic daily needs for many families has become challenging.
In parallel, the Central Administration of Statistics in Lebanon and the International Labour Organization have reported that the unemployment rate has risen from 11.4 percent between 2018 and 2019 to 29.6 percent in January of last year.
The study revealed that approximately one-third of the active workforce was unemployed at the beginning of the year, noting that "the unemployment rate among women is higher than among men."
Salary adjustments have not alleviated the distress. Despite modifications in wage and salary values, with the minimum wage reaching around 9 million Lebanese lira, nearly half of the workforce will be underutilized, a term indicating unemployment or individuals available for work more hours than they actually work, or those who do not expect to find job opportunities.
Based on all the preceding, the risk of employee layoffs remains, and falling into the trap of unemployment becomes even more likely. Due to the high cost of transportation, public sector employees cannot commute to their workplaces. Additionally, tens of thousands of private sector workers have lost their jobs, and many young professionals have chosen emigration for a better life.
In this context, the World Bank indicated a decrease of 2.6 percent in real GDP in 2022 and a total economic contraction of about 39.9 percent of total GDP since 2018. Furthermore, the national currency lost more than 98 percent of its value by February 2023, leading to an inflation rate of 171.2 percent, causing the workforce in Lebanon to experience substantial volatility.
According to "Information International," the closure of thousands of institutions has resulted in the decline of their activities, and the number of unemployed has increased, exacerbated by the replacement of non-Lebanese labor in specific sectors. The "Syrian" workforce accounts for more than half of the workforce due to their lower salaries and social benefits cost.
The figures indicate that the number of Lebanese who have been laid off from their jobs reached around 100,000 Lebanese since the beginning of 2020 until 2022.
The tourism sector, which the Lebanese economy relies on, witnessed about 40,000 layoffs, followed by the commercial sector with 25,000, the industrial sector with about 12,000, the banking sector with about 10,000, 7,000 in the education sector, 5,000 in the contracting sector, and 3,000 in the transportation sector.
Hence, it is worth mentioning that the number of unemployed individuals is estimated to be around 450,000 to 470,000 Lebanese, roughly 34 percent of the estimated workforce of about 1.4 million.
Despite the difficulty and hardship in the past three years, the tourism sector has regained its vigor this season.
According to the General Secretary of the Federation of Lebanese Touristic Syndicate, Jean Beyrouthy, told Addiyar, "the hotel and restaurant sector's booking rate exceeded 85 percent, and I can say that it reached 100 percent according to the regions."
He added, "Reservations in the broad tourism sector varied. It had lost many Lebanese workers at the beginning of the economic crisis, the COVID-19 pandemic, and the October 17 Revolution. However, it has regained its shine, and many jobs are available in this field. We are searching for sustainable workers to ensure the continuity of work in this vital sector in Lebanon to increase production capacities in the future."
He continued, "The diaspora facilitated the availability of US dollars without trouble, so everyone can access it instead of buying it from exchange dealers. The stability of the exchange rate in the parallel market reflects the stability of the economic life. We are trying to provide all necessary services and professionalism at high levels, and we also provide electricity continuously to ensure comfort for customers. Each establishment today has become a state in itself, given the intentional absence of the actual state and its official institutions."
He said, "The large Lebanese diaspora this season contributed to the revival of all vital tourism sectors in Lebanon. Around 400,000 young men and women who had emigrated due to living conditions have returned to Lebanon for the summer vacation."
He added, "There are many visitors from European, Australian, Canadian, Egyptian, and Jordanian nationalities. The greatest advantage is for Iraq."
He pointed out, "Lebanon's uniqueness lies in the distinctive tourism movement it is known for in all aspects. Also, the nightlife atmosphere here is not present in all countries worldwide. This makes it a distinctive and attractive country for Arab and foreign visitors."
Beyrouthy concluded by saying, "Pensions are now being paid in US dollars, and there are many jobs in this sector alongside high incomes. There are employment opportunities for those looking for permanent jobs, especially for university students seeking to cover their academic and daily expenses. Moreover, the maritime sector currently provides about 40,000 jobs."