New worker-level evidence shows severe job losses, income decline and rising insecurity, highlighting the need to place decent work at the centre of crisis response and recovery.
BEIRUT (ILO News) – A new report by the International Labour Organization (ILO) finds that the recent escalation of hostilities in Lebanon have severely disrupted the livelihoods of private sector workers, with one in three surveyed workers no longer working at the time of the survey and average labour income estimated to have fallen by 40.4 per cent when both job losses and earnings declines are taken into account.
The report, “Lebanon’s labour market in crisis: Assessing the impacts of renewed conflict and regional instability – A focus on private sector workers”, is part of the ILO’s response to the latest escalation of hostilities in Lebanon. It provides timely worker-level evidence to inform measures that protect jobs, income, labour rights and livelihoods as part of the wider crisis response and recovery support effort.
The survey, conducted in May 2026 in partnership with the General Confederation of Lebanese Workers (CGTL) and the Federation of Employees’ and Workers’ Unions in Lebanon (FENASOL), covered 2,485 private sector workers who were employed before the resumption of conflict in March 2026. It targeted both employees and self-employed workers across sectors and governorates.
The findings show that 33.0 per cent of surveyed workers were no longer working at the time of the survey, including 28.2 per cent who were unemployed and 4.7 per cent who had exited the labour force. Job losses were particularly severe among workers from hostilities-affected districts in southern Lebanon, reaching 76.5 per cent among residents of the Nabatieh Governorate and 43.2 per cent among residents of the South Lebanon Governorate. Yet the impact was not confined to frontline areas, with workers in other districts also affected by weakened demand, reduced business activity, inflationary pressures and wider market disruptions.
Displacement emerged as a major driver of job loss. More than two-thirds of workers who remained displaced were out of work. Among surveyed workers, 37.4 per cent were still displaced at the time of the survey and an additional 14.2 per cent had been displaced during the conflict but had later returned home.
“The current crisis in Lebanon is not only destroying buildings and infrastructure, but also destroying jobs, incomes and the fragile foundations of many people’s lives,” said Ruba Jaradat, ILO Regional Director for Arab States. “The ILO is working with its constituents and partners to support labour market recovery in Lebanon. That means protecting workers, supporting income and employment, strengthening social protection, producing reliable and timely data and analysis, helping enterprises retain workers, and ensuring that the most vulnerable are not pushed further into informality, poverty or exclusion. Humanitarian assistance saves lives, but decent work and social protection help people preserve dignity, rebuild livelihoods and recover.”
The report finds that the crisis has disproportionately affected workers already facing higher vulnerability. Joblessness was particularly high among persons with disabilities, at 71.4 per cent, women at 44.3 per cent, youth aged 15–24 at 42.4 per cent, Syrian refugees at 39.4 per cent and employees in informal jobs at 37.7 per cent. Workers without written contracts, those with lower levels of education and those employed by smaller enterprises were also more likely to lose their jobs.
The consequences of the crisis extended well beyond job loss. Among workers who remained employed, average labour income fell by 14.8 per cent, while total average labour income across the surveyed population is estimated to have fallen by 40.4 per cent once the complete loss of earnings among those who lost their jobs is included. Workers who found new jobs often did so under worse conditions, earning on average 30.7 per cent less than before, with most entering informal employment or self-employment.
Households relied heavily on their own resources to cope. Savings were the most common coping mechanism, while more than 40 per cent of Lebanese, Syrian and Palestinian workers reported delaying loan or bill repayments. Many also reduced food spending, underscoring growing pressure on household welfare and food security.
Recovery needs remain substantial. Nearly half of respondents, 45.5 per cent, identified assistance in finding stable employment as their primary need, while 37.7 per cent said they needed support to secure higher or more regular earnings. The report calls for a response that combines immediate humanitarian and labour market measures with longer-term investment in employment creation, social protection, skills development, enterprise recovery and decent work.
The report recommends employment-intensive recovery programmes, targeted wage subsidies, emergency support for women, persons with disabilities, self-employed workers and micro, small and medium-sized enterprises, expanded social protection, legal support for migrant domestic workers and strengthened labour market governance. In the medium and longer term, it calls for stronger labour market data systems, activation of the National Employment Office, local economic development approaches, skills and vocational training, gradual formalization, unemployment protection and a comprehensive national employment policy.
The report was prepared by the ILO Regional Office for Arab States in partnership with CGTL and FENASOL, with co-funding from the ILO’s ENABLE programme, funded by the European Union, and the PROSPECTS partnership, funded by the Government of the Netherlands.