According to a recent report by the International Labor Organization, “World of Work Report 2014: Developing with Jobs,” there is a global job crisis, and the crisis is especially acute among the youth.
More than 200 million people are globally unemployed today, with the unemployment rate of those under 25 two to three times higher than the average. And with more than 42 million jobs required to be created every year, the report concludes, “the jobs gap is getting wider not narrower.” Perhaps nowhere is this situation more represented than in Lebanon.
Lebanon is currently facing a critical unemployment situation, compounded by political instability both at the regional and national levels, and made worse by the influx of approximately 1.5 million refugees from Syria.
At present, the overall unemployment rate in Lebanon stands at 24 percent with youth unemployment exceeding 35 percent. The traditional external markets for the Lebanese work force, whether in the Gulf countries or in European or African countries, have considerably decreased their demand and apply tougher regulations that further limit employment possibilities. As a result, the outlets that have historically eased Lebanese unemployment are getting increasingly blocked.
In face of such a dramatic situation, whose negative ramifications on the economic, social and security fabric of the country are immense, innovative solutions have to be found and applied. This calls for the need to create jobs within our borders, building on the country’s talented human resources that are widely known to be competent, adaptable and resilient, with a flair for linguistics.
To help us achieve such crucial job creations, the curricula throughout the education system should be adapted to future labor market needs. Today, there is a structural gap between needs and competence. We have a surplus of doctors, engineers and lawyers that the country can hardly absorb, but a lack of specialized skilled workers. To close this gap, vocational training should be totally reviewed and restructured in close collaboration with the private sector, so as to ensure that appropriate and sufficient skilled labor is available in line with market demands. Such reforms can only be undertaken after a rigorous evaluation of the changing needs in the workforce. To this effect, a comprehensive national labor market survey should be conducted to assess the present situation, and to serve as an indicator for the future demand and supply of skilled and unskilled workers.
Parallel to the needed transformation in education and labor market upgrades, what is also essential to development is small- and medium-sized enterprises. This was confirmed by a recent World Bank report, “Jobs or Privileges: Unleashing the Employment Potential of the MiddleEast and North Africa (2014),” that gave utmost priority to establishing these enterprises. Such young firms and startups are the engines of job creation in Lebanon. The report also states that micro-startups between zero to four years of activity and with less than four workers generated about 66,000 jobs in Lebanon between 2005 and 2010.
As important, and especially given the crucial role of information technology in today’s modern economy, is developing a viable information and communications technology sector. As a result, the private sector should be encouraged to invest in knowledge economy companies, as they can generate considerable job opportunities and are largely immune to political instability. The recent Central Bank Circular 331, giving incentives to banks in order to invest in this area, is a big step forward. The development of such niche markets increase job offers and wages, as they cater for international markets and are exposed to worldwide demand.
Last but not least, every effort should be made to speed up the process of finalizing the oil and gas exploration and production projects. Such a sector would create massive employment opportunities at all levels on a sustainable basis. Government and Parliament action is here urgently needed.
By creating job opportunities at the national level, Lebanon’s economy would be considerably enhanced and it would be in a far stronger position to weather any political instability. But success is not easy and there are preconditions for it to happen. In this respect, the World Bank report recommends introducing legal and administrative reforms, including policies that favor open markets, safeguard competition, ensure equal opportunities for all entrepreneurs, and, overall, ease the climate for business in the country.
In conclusion, we cannot exaggerate the importance of creating remunerative and durable jobs for the youth of Lebanon, who represent the future and hope of this country. And any national plan to provide youth with credible jobs and to combat the unemployment crisis should be a collective effort, requiring the full involvement and commitment of the government as well as all organs of civil society: the private sector, unions, universities and society at large.
