A new assessment by the International Labour Organization (ILO) reveals that the recent conflict between Lebanon and Israel has had a serious impact on Lebanon's private-sector labour market, worsening an already fragile economic situation and placing additional strain on workers and enterprises across the country.
The assessment indicates widespread job losses, reduced incomes and business closures, particularly in areas directly affected by the conflict, which began in October 2023 and significantly intensified from September 2024 until a ceasefire came into effect in November.
The findings also show that informal workers, women, youth and migrant populations remain particularly vulnerable in the post-conflict labour market.
"Lebanon's economy has been under severe strain in recent years. The latest conflict has further disrupted livelihoods and business operations, creating new challenges for recovery," said Ruba Jaradat, ILO Regional Director for Arab States. "The report provides a basis for designing informed, inclusive and coordinated responses."
The survey found that nearly 25 per cent of workers were out of employment during the conflict, with unemployment and economic inactivity levels significantly higher in regions exposed to regular bombing. Even after the ceasefire, job losses remained widespread, affecting around 14 per cent of surveyed workers, with women and youth especially disadvantaged. Those who remained employed were not insulated from the conflict's effects: average monthly income declined by more than 15 per cent, and both working hours and the number of working days also fell. Notably, while informal workers were disproportionately affected by job losses compared to those in formal employment, informality remains widespread, with 65 per cent of employees working without social protection, often lacking access to decent working conditions or measures to safeguard their employment status.
At the height of the conflict, around 37 per cent of surveyed businesses were closed, with an additional 22 per cent operating at reduced capacity. Post-ceasefire, 14 per cent of enterprises remained closed, and another 17 per cent were only partially operational. The most affected sectors included agriculture, construction and tourism, which reported the highest levels of disruption and business closures, according to the survey results.
While some recovery was observed after the ceasefire compared to conditions during the conflict, many workers and enterprises continue to face uncertainty and limited resources. Workers identified higher incomes, access to stable jobs and small business support as their most urgent needs. Enterprises noted access to finance, affordable energy and broader access to markets as key to recovery.
The report recommends a mix of short- to medium-term recovery measures along with longer-term structural reforms. These include targeted financial support for affected sectors, infrastructure rehabilitation projects that employ a large number of workers under decent working conditions, expanded skills training, and strengthened social protection systems. The report also highlights the importance of social dialogue and institutional capacity-building to ensure an inclusive and sustainable recovery process.
The assessment is based on surveys conducted with over 2,200 workers and 700 businesses in Lebanon from 12 to 31 December 2024.in collaboration with the General Confederation of Lebanese Workers (CGTL), the National Federation of Workers' and Employees' Trade Unions (FENASOL) and the Association of Lebanese Industrialists (ALI), with the aim of informing practical measures to support decent work and economic resilience.
