LEBANON - A new report by the International Labour Organization (ILO) has revealed a sharp deterioration in Lebanon’s labour market, with nearly one-third of private sector workers losing their jobs following the resumption of hostilities in March 2026, as widespread displacement and economic contraction continue to deepen the livelihood crisis.
The report, titled “Lebanon’s Labour Market Amid Crisis: Assessing the Impact of Renewed Conflict and Regional Instability,” is based on a survey of 2,485 private sector workers conducted in May 2026. It concludes that the latest security shock has further weakened a labour market already suffering from the effects of years of economic crisis.
Although a ceasefire was reached on 19 June 2026, the report notes that the humanitarian situation remains fragile, with thousands of families still unable to return to their areas, particularly in the South and Nabatieh, due to continued restrictions linked to the buffer zone.
Widespread Displacement and Changing Family Conditions
The report found that 37.4% of surveyed workers were displaced at the time of the assessment. Nabatieh recorded the highest displacement rate at 97.6%, followed by the South at 57.6%, and Mount Lebanon at 33.6%.
Displacement also increased the average household size from 4.9 members before the crisis to 6.2 members, as families hosted relatives and shared housing. Meanwhile, the average number of employed household members declined from 2.0 to 1.6, increasing financial pressure on families.
One-Third of Workers Forced Out of the Labour Market
According to the report, 33% of private sector workers stopped working, including 28.2% who became unemployed and 4.7% who exited the labour force entirely.
Displacement was identified as one of the main drivers of job losses, with around two-thirds of displaced workers losing their jobs, according to the report.
Job losses varied significantly across regions and sectors. Nabatieh recorded the highest rate of employment losses at 76.5%, followed by the South at 43.2%, while rates were lower in Akkar (13.7%) and the North (9.1%).
At the sectoral level, real estate and entertainment activities, domestic work, administrative and support services, and accommodation and food services were among the most affected sectors. Meanwhile, information technology, financial services, and energy and water sectors experienced relatively lower losses.
Most Vulnerable Groups Bear the Greatest Losses
The report highlights that the impact of the crisis has not been evenly distributed among different groups.
People with disabilities recorded the highest rate of job losses at 71.4%, and none of those who lost their jobs had found new employment by the time of the survey.
Women experienced a job loss rate of 44.3%, while facing additional barriers to returning to the labour market, including caregiving responsibilities and transportation costs.
Young people aged 15–24 recorded a job loss rate of 42.4%, while 39.4% of Syrian refugees lost their jobs. Most unemployed Syrian workers identified the lack of suitable employment opportunities as the main barrier to finding new work.
The report also warned of the expansion of informal employment, noting that 61.3% of workers who had to change jobs moved into informal work, with average wages declining by 30.7%.
Sharp Income Decline and Weak Social Protection
Even workers who managed to keep their jobs were affected by the crisis, with their average income declining by 14.8%.
When accounting for the complete loss of income among newly unemployed workers, the report estimates that total labour income in Lebanon fell by 40.4%. This was accompanied by a reduction in working days for 28.3% of workers, while 33.5% reported feeling no job security at all.
The report also highlighted the limited reach of official support. Only 4% of Lebanese workers received government financial assistance, compared with just 0.4% of Syrian workers.
In addition, 33.4% of Syrian workers, 27.8% of Lebanese workers, and 27.1% of Palestinian workers reduced their food spending as a coping strategy amid the crisis.
Call for Urgent Intervention
The ILO stressed that a full and lasting cessation of hostilities is a key condition for labour market recovery, calling for rapid intervention from the international community and regional partners.
Its main recommendations include launching labour-intensive infrastructure programmes to create rapid employment opportunities, providing wage support in the hardest-hit and food-security-related sectors, offering targeted assistance to women, persons with disabilities, and small businesses, and strengthening legal protections for migrant workers, including domestic workers.
The report concludes that economic recovery will not be possible without restoring employment opportunities, strengthening social protection systems, and supporting the groups most affected by the conflict.
