ELMA Lebanon 2019

EMPLOYMENT AND LABOUR
MARKET ANALYSIS LEBANON

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CONTENT
LIST OF FIGURES 4
LIST OF TABLES 5
LIST OF ABBREVIATIONS 6
1 EXECUTIVE SUMMARY 10
2 FRAMEWORK CONDITIONS FOR EMPLOYMENT GENERATION 22

Economic situation 24
Infrastructure conditions 26
Demographic development 27
Political situation 29
Investment climate and business environment 30
Economic policy and strategies 31
Summary of challenges and opportunities 32
3 LABOUR MARKET TRENDS 34

Employment figures 36
Youth employment 37
Child labour 38
THE LABOUR DEMAND SIDE: THE IMPACT OF BUSINESS

4 AND SECTOR DEVELOPMENT ON EMPLOYMENT GENERATION 40
Actors 42
Potential for growth and job creation 46
Employment in MSMEs 46
Employment with entrepreneurs 51
Employment in international trade 52
Employment in the informal sector 54
Employment in the public sector 55
THE LABOUR SUPPLY SIDE: THE QUALITATIVE DIMENSION
5 OF LABOUR FORCE DEVELOPMENT 58
Actors 60
Higher education 64
Vocational education 66
Life and soft skills training 67
Qualifications within the labour force 67
Labour migration and labour mobility 67
Cultural perception of employment and jobs 71
Status of specific jobs 71
Gender-specific employment 72
6 MATCHING DEMAND FOR AND SUPPLY OF LABOUR 76

Actors 78
Matching demand and supply 80
Recruiting staff 82
Retaining staff 83
Wages and collective bargaining system 84
Social protection policies 86
7 IMPORTANT SECTORS FOR EMPLOYMENT GENERATION 90

Agro-food 93
Construction 97
Creative industries 99
Health 103
Information and communications technology 104
Tourism and hospitality 107
8 RECOMMENDATIONS 112
Recommendations: framework conditions 114
Recommendations: Demand side 117
Recommendations: Supply side 120
Recommendations: Labour-market matching 124
9 APPENDIX 128
Appendix 1: Methodology 130
Appendix 2: Bibliography 131
Appendix 3: Resource persons 136
Appendix 4: Endnotes 138
LIST OF FIGURES
Figure 1: Overview of structure of ELMA report 12
Figure 2: GDP development 2008-2017 24
Figure 3: Population pyramid 2010 (left) and 2017 (right) 28
Figure 4: Estimated population development 28
Figure 5: Most problematic factors for doing business in Lebanon 30
Figure 6: Status of employment of Lebanese (2007) 36
Figure 7: Unemployment rates for Lebanon, 1991-2015
(total, youth, disaggregated by sex) 37
Figure 8: Percentage of children and youth aged 5-17 engaged in child
labour during last week before being interviewed across population groups 38
Figure 9: Private enterprises, by size 46
Figure 10: Registered enterprises, by type 46
Figure 11: Total SME turnover, by activity, as a percentage 47
Figure 12: Indicator Business Sophistication, Global Competitiveness Index 49
Figure 13: Shares of tradable vs. non-tradable activities of FDI flows 52
Figure 14: Lebanon’s export share and comparative advantage 53
Figure 15: Gross enrolment ratio (per cent) in 2017 for selected Arab countries 65
Figure 16: Enrolment in TVET as percentage of total enrolment in secondary education,
2017, selected Arab countries 66
Figure 17: Economic activity rates by age groups and sex 72
Figure 18: Employment in major sectors by sex, 2009 73
Figure 19: Recruitment methods vs. job search techniques 81
Figure 20: Factors taken into consideration by firms when recruiting for a position 83
Figure 21: Minimum wage (USD per month) for a full-time worker 85
Figure 22: NSSF subscribers, in numbers, 2014 86
Figure 23: Sectors with highest direct economic potential in 2025 92
Figure 24: Key stakeholders in the agro-food industry 94
Figure 25: Export destinations for agro-industrial products, in per cent, 2017 95
Figure 26: Key stakeholders in the residential construction industry 97
Figure 27: Creative industry sub-sectors 100
Figure 28: Ecosystem actors in the ICT sector 105
Figure 29: Tourist arrivals 108
Figure 30: Overview of research methodologies employed in ELMA Lebanon 2019 130
LIST OF TABLES
Table 1: Global Competitiveness Index, Institutions 29
Table 2: Scorecard for international benchmarking reports 30
Table 3: Framework conditions – challenges and opportunities for employment generation 32
Table 4: Labour trends – challenges and opportunities for generating employment 39
Table 5: Demand side - challenges and opportunities for employment generation 55
Table 6: Gross enrolment ratio, 2011-2017, all population 65
Table 7: Supply side – challenges and opportunities for employment generation 74
Table 8: Estimated median monthly earnings by employment status in Lebanon’s
private sector, 2010 (USD) 84
Table 9: Matching – challenges and opportunities for employment generation 88
Table 10: Strength-Weakness-Opportunities-Threat (SWOT) analysis,
agro-food sector in Lebanon 96
Table 11: Proportion of Lebanese and Syrian workers per job category in North Lebanon, 2010 98
Table 12: SWOT analysis, construction sector in Lebanon 99
Table 13: Main creative clusters identified in Lebanon 100
Table 14: SWOT analysis, culture and creative industries in Lebanon 102
Table 15: SWOT analysis, health sector in Lebanon 104
Table 16: SWOT analysis, ICT sector in Lebanon 107
Table 17: Planned investment projects in cultural heritage/tourism sector 109
Table 18: SWOT analysis, tourism and hospitality sector in Lebanon 110
5
LIST OF ABREVIATIONS
ALI Association of Lebanese Industrialists
(i)NGO (international) Non-government Organisation
(M)SME (Micro), small and medium sized enterprises
AC Air condition
AI Artificial Intelligence
ANERA American Near East Refugee Aid
ANUGA Allgemeine Nahrungs- und Genussmittel-Ausstellung
AUB American University of Beirut
BDL Banque Du Liban, Central Bank
BDS Business Development Services
BIAT Business Incubation Association Tripoli
BMZ German Federal Ministry for Economic Cooperation and Development
BRD Beyond Reform and Development
BSU Business Support Unit
BT Baccalaureate Technique
CAS Central Administration of Statistics
CCIA / CCIB Chamber of Commerce, Industry and Agriculture / The Chamber of Commerce,
Industry and Agriculture Beirut
CEDRE Conférence économique pour le développement, par les réformes et avec les
entreprises
CGTL The General Confederation of Lebanese Workers
CIP Capital Investment Programme
ConTra BMZ/GIZ Construction and Training Programme
CV Curriculum Vitae
DFID British Department for International Development
DGVTE Directorate General for Vocational and Technical Education
DS Dual System
EC European Community
ECOSOC Economic and Social Council of Lebanon
ELMA Employment and Labour Market Analysis
ESFD Economic and Social Fund for Development
ETF European Training Foundation
EU European Union
FAO Food and Agricultural Organisation
FDI Foreign Direct Investment
GCC Gulf Cooperation Council
GDP Gross Domestic Product
GEM Global Entrepreneurship Monitor
GEOs Guidance and Employment Offices
GER Gross enrolment rate
GIL Generation of Innovation Leaders
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
GNP Gross National Product
HR Human Resources
ICT Information and communication technology
IDAL Investment Development Authority of Lebanon
IECD Institut européen de coopération et de développement
ILO International Labour Organization
KfW Kreditanstalt für Wiederaufbau
KILM Key Indicator of the Labour Market
LBP Lebanese pound
LCRP Lebanon Crisis Response Plan
LEDA Local Economic Development Agency
LHSP The Lebanon Host Communities Support Programme
LT Licence Technique
MEHE Ministry of Education and Higher Education
MENA Middle East and North Africa
MoA Ministry of Agriculture
MoET Ministry of Economy and Trade
MoI Ministry of Industry
MoPH Ministry of Public Health
MoSA Ministry of Social Affairs
MW megawatt
NEO National Employment Office
NPTP Emergency National Poverty Targeting Programme
NSSF National Social Security Fund
OECD Organization for Economic Co-operation and Development
PPP Public-Private Partnership
PRL Palestinian refugees from Lebanon
ProVTE EU/GIZ Programme for the technical assistance for a more practice oriented
VTE in Lebanon
PRS Palestine refugees from Syria
Qudra Regional programme for the resilience for Syrian refugees, IDPs and host
communities in response to the Syrian and Iraqi crises
RCA Revealed comparative advantage
RCDL Rassemblement de Dirigeants et Chefs d'Entreprises Libanais
SCC The Syndicate Coordination Committee
SDGs Sustainable Development Goals
STEP Subsidised Temporary Employment Programme
SWOT Strengths-Weaknesses-Opportunities-Threats
TEA Total Entrepreneurship Activity
7
TS Technicien Supérieur
TSEZ Tripoli Special Economic Zone
TVET Technical and vocational education and training
UDP-NL EU/BMZ/GIZ Urban Development Programme North Lebanon
UN DESA United Nations Department of Economic and Social Affairs
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNHCR United Nations High Commissioner for Refugees
UNICEF United Nations International Children's Emergency Fund
UNIDO United Nations Industrial Development Organization
UNRWA United Nations Relief and Works Agency for Palestine Refugees in the Near East
USAID United States Agency for International Development
USD US Dollar
VC Venture capital
VTE Vocational and technical education
WASH Water, sanitation, hygiene
WEF World Economic Forum
WHO World Health Organisation
9
EXECUTIVE
SUMMARY
11
EXECUTIVE SUMMARY
The Employment and Labour Market Analysis qualitative development of labour force development
Lebanon (ELMA Lebanon) provides a comprehensive and the matching of supply and demand in the labour
overview of the Lebanese Labour Market, its actors market. In addition, the ELMA Lebanon profiles
and its framework conditions. It explores current sectors with promising potential for job creation or
labour market trends, the impact of business and income generation and provides recommendations
sector development on employment generation, the for key stakeholders on how to improve the situation.
Figure 1: Overview of structure of ELMA report
CHAPTER 2:
Framework conditions for
employment generation
CHAPTER 3:
Labour market trends
C H A P TER 4 : CHAPTER 6: CHAPTER 5:

Labour market demand side Matching demand and supply Labour market supply side
CHAPTER 7:
Important sectors for
employment generation
CHAPTER 8:
Recommendations
Source: Authors
FRAMEWORK CONDITIONS FOR
EMPLOYMENT GENERATION
Dominated by services and trade, the Lebanese economy features a high dependency on imports. The unstable
situation in Syria, high debt ratios, low productivity, high production costs and structural deficits that include a
large informal sector account for low growth rates in the last ten years (1-3 per cent of GDP) and limit the ability of
companies to create employment.
INFRASTRUCTURE the armed conflict in Syria under way since March 2011.
Plagued by deep political cleavages and an arduous
Low levels of public spending and several wars over the government formation process, Lebanon continues to
last 40 years have decimated the country’s infrastructure struggle with political instability, weak public institutions and
in which basic services, including electricity, water low levels of trust between the public and private sectors.
supply, sanitation, transport, waste management and
telecommunications are deficient. Nonetheless, Lebanon
has in recent years renovated roads, expanded its port INVESTMENT CLIMATE AND BUSINESS
infrastructure and set up industrial parks. Major planned ENVIRONMENT
infrastructure investments include the Capital Investment
Programme (CIP) that foresees investments of USD 16 Entrepreneurs and investors in Lebanon have grappled
billion over the next 10 years. with a difficult business climate for years. According to
the Executive Opinion Survey of the World Economic
Forum (2017), government instability, corruption, a weak
DEMOGRAPHIC DEVELOPMENT infrastructure, a complex bureaucracy and political instability
are the key barriers to doing business. But there are also
Demographically, Lebanon is unique in two ways: It has positive aspects, such as the country’s service-oriented and
the largest diaspora population globally and also hosts the open economy.
highest per capita population of refugees in the world. Both
the large number of emigrants – estimated at anywhere
from 8.6 million direct emigrants to 14 million descendants ECONOMIC POLICY AND STRATEGIES
of emigrants1 – and the large refugee population residing in
the country have an impact on the labour market. National strategies adopted in recent years include an
integrated vision for the industrial sector to be realised by
POLITICAL SITUATION 2025 by the Ministry of Industry and Ministry of Economy
and Trade’s ‘Lebanon SME Strategy – A Roadmap to 2020’.
Lebanon continues to suffer from the prolonged effects of the
civil war of 1975-1990, the consequences of the 2006 war and
13
LABOUR MARKET TRENDS
Lebanon has no system in place for the collection of current labour market data on an ongoing basis; the only data
available is that of international organisations like the ILO. The last national survey was conducted in 2009; the
ILO and the Central Administration of Statistics (CAS) are currently conducting a study on labour-market statistics
scheduled to be published in late 2019.
EMPLOYMENT FIGURES YOUTH UNEMPLOYMENT

The UN estimates the Lebanese population at around 4.68 Youth unemployment is three to four times higher than
million (2017). According to 2017 ILO estimates, some 2.061 the total unemployment rate. The Lebanese job market is
million people (15+ years) in Lebanon are employed2, thus not able to create as many jobs as there are new entrants
the country features a low employment-to-population ratio of within the job market. An estimated 11,000 to 15,000 new
44.1 per cent (ILO modelled estimates). jobs have been created annually over the last 10 years, but
the number only of annual university graduates over the
same period was estimated at between 23,000 and 43,000,
without taking the TVET graduates into account.
UNEMPLOYMENT
The ILO estimates the total unemployment rate to be 6.6
per cent (2017, among Lebanese 15 years+)3. However, this CHILD LABOUR
low estimate is challenged by many institutions in Lebanon,
as the numbers are based on the 2009 survey and do not As a result of the Syrian crisis and the economic slow-down,
account for the influx of refugees and the economic crisis. the number of children engaged in child labour has risen in
Estimates that factor in these issues range between 25 and Lebanon. However, child labour is not exclusive to Syrian
36 percent.4 refugees. Whereas the rate among Syrian refugees is
highest (6.7 per cent), this is followed by native Lebanese (6
per cent), Palestinian refugees from Syria (4.1 per cent) and
Palestinian refugees from Lebanon (5 per cent). Many NGOs
and donor organisations address this issue by targeting their
families’ livelihoods.5
LABOUR DEMAND SIDE
Lebanon’s job-creation problem is a demand-side problem, as economic growth currently does not generate
enough jobs for a growing workforce.
standards, others blame weak shipping infrastructure and

EMPLOYMENT IN MSMES a lack of trade promotion. Nevertheless, given its direct
Lebanon’s private sector, driven primarily by MSMEs and access to the Mediterranean Sea and its proximity to larger
entrepreneurship, plays a central role in the country’s markets such as the EU, Lebanon is geographically well-
economy, contributing to 80 per cent of GDP and accounting positioned for export activities. Furthermore, its widespread
for 85 per cent of the workforce. MSMEs face challenges in diaspora population could be tapped as an efficient support
scaling up their business because many of them are family- structure for export activities and some products are already
run and lack both professional management and access to highly competitive.
finance. Nevertheless, there are success stories in certain
sectors, such as agro-food processing and tourism.
Other strengths include the existing value chain breadth, EMPLOYMENT IN THE INFORMAL SECTOR
existing cluster development (i.e., the geographic
concentration of firms, suppliers and producers of related A large share of Lebanese companies operates in the
products), innovation capacity and the competitiveness of informal sector. The National Statistical Institute sees almost
certain products on international markets. total informality in agriculture (over 90 per cent), followed
by construction and transport (nearly 80 per cent and 70
per cent respectively) and commerce (58 per cent). Labour
conditions in these companies are not regulated and often
EMPLOYMENT WITH ENTREPRENEURS substandard7. Most informal companies are small, managed
Lebanon is among the world’s leading entrepreneurial by owners with a relatively low educational background and
economies and is recognised forming ground of entrepreneurs have a low capacity to scale up. With some support and the
in the region. The support ecosystem for entrepreneurs is right incentives, some of these companies might formalise:
growing fast and features innovative financing mechanisms some 39 per cent see an incentive in improving their access
and large sums of available venture capital. Nonetheless, the to finance and 13.8 per cent in the ability to issue receipts
fact remains that many entrepreneurs launch a business out and attract customers.8
of economic necessity as an alternative to unemployment
and do not expect to employ anybody but themselves.
EMPLOYMENT IN THE PUBLIC SECTOR
EMPLOYMENT IN INTERNATIONAL TRADE
The public sector employs about 300,000 people, the
While Lebanon has an open economy in which trade majority of whom work in the military sector,9 accounting for
accounts for about 40 per cent of GDP, it has a large trade about 15 per cent of total employment. This stands out in
deficit that reached USD 16 billion in 2017. Exports account contrast to other countries in the Middle East in which public
for only 11.2 per cent of GDP, around half the regional sector employment predominates.10 Due to the existing
average6. The World Bank concludes that a factor behind budget constraints, it is unlikely that the public sector will
Lebanon’s weak export competitiveness is the lack of quality contribute to substantial employment creation.
LABOUR SUPPLY SIDE VOCATIONAL EDUCATION

In 2017, approximately 27.7 per cent of the students (21.97
HIGHER EDUCATION per cent of females and 33.65 per cent of males) enrolled
in secondary education opting for the vocational track.11
Lebanon has a renowned education system with mostly Vocational education is seen as a last resort for students
private universities providing a hiqh-quality education. The with a vulnerable background or who have dropped out of
country’s only public university, the Lebanese University, school or university. The vocational schools are considered
is also the only university with affordable annual fees (up to provide a low-quality education. However, perceptions
to USD 163 for Lebanese students); private universities are changing as there are job opportunities in technical
charge up to USD 26,400 per year. Lacking sufficient jobs and the new National Strategic Framework for TVET is
information on labour-market demands, students most often aiming at improving the quality of the vocational education.12
opt for relatively traditional and socially well esteemed fields The Syrian refugee crisis has led to an increased number of
like medicine or law with an expected return on the high short, non-formal vocational-training programmes provided
investment. This creates an overabundance of graduates in by NGOs and private training institutions which are, however,
a comparatively small number of occupations. conducted without no or limited on-the-job training, follow-
up support and quality control.
15
QUALIFICATIONS WITHIN GENDER-SPECIFIC EMPLOYMENT
THE LABOUR FORCE
Only 22.8 per cent of Lebanese women are economically
Lebanon’s labour market suffers from an overabundance active. They are more likely to be trained and employed in
of university graduates in a few vocations and a lack of the fields of teaching, health and service work.14 The gender-
qualified labour at the lower end of the skills spectrum. related wage gap was reported to be lowest in the services
There are significant gaps between the skills demanded and trade sectors (6.2 per cent), as compared to transport
by employers and those held by employees. In the case of and communication, for example, where the gap was a full
managerial positions, the gaps include, for example, basic 38 per cent.15 Gender stereotypes are reinforced by donor-
technological skills and the ability to work independently. financed training programmes: A common approach by many
For non-managerial positions, the main gaps regarding NGOs targeting adult women from vulnerable backgrounds
soft skills include the ability to perform in a team, foreign- is to provide training that encourages them to work from
language skills or problem-solving skills.13 home, in sectors such as food processing or embroidery.
However, times are changing: Due to the economic situation,
women are being forced to support their families and start
LABOUR MIGRATION AND LABOUR their own business.
MOBILITY
Lebanon has been subject to large inflows and outflows
of labour. The emigration of skilled young people has left
the country with no middle management. However, the
remittances sent back to Lebanon are a benefit. Labour
inflows are dominated by low-skilled workers: Lebanon
is a destination for refugees and foreign workers under
precarious working conditions. Though officially limited to
work in certain sectors, refugees introduce competition for
jobs as they work for lower wages. The abundance of low-
cost workers is however a benefit for businesses.
MATCHING DEMAND AND SUPPLY

MATCHING DEMAND AND SUPPLY RETAINING STAFF
There is a strong skills mismatch in terms of vacancies and The limited scope of job opportunities, salary prospects
the availability of highly qualified graduates. Three areas and job responsibilities often result in young Lebanese
should be targeted: First, Lebanon needs improved data and professionals leaving the country after graduation or within
information regarding job seekers’ skills and those required two to three years of gaining their first job. To avoid a
by companies. Second, exchange between education high turnover of their white-collar staff, company owners
institutions and companies should be fostered and coupled have introduced efforts to retain staff that include carefully
with the development of institutionalised forms of career selecting a compatible team, offering good salaries,
advice at schools. Third, the lack of a structured, centralised providing interesting, meaningful work and career prospects
and transparent platform for finding out about open positions while fostering a welcoming corporate culture. However, to
must be tackled. Some private organisations have launched date, this is practiced in only a few companies.
initiatives involving, for example, online portals, but the
National Employment Office (NEO) – which should the be
key player in this field – has not been very active in recent
years. Given the World Bank’s massive support for the NEO, WAGES AND COLLECTIVE
this could soon change. BARGAINING SYSTEM
The minimum monthly wage in Lebanon is USD 45016, the
RECRUITING STAFF average median wage of a working Lebanese is USD 616
(in 2010)17 and the entry wage for a university graduate is
The quality of the recruiting process varies depending on the about USD 1,000 (2018). These wages may be higher than
size of the company. Interviewed medium-sized companies wages in other countries in the region (e.g. Jordan), but
noted a lack of capacity in recruiting procedures. Only the the comparatively high cost of living in Lebanon should be
largest companies could report having a highly structured factored into this calculation.
process with a large roster of qualified potential candidates. Labour relations in Lebanon have traditionally been
turbulent. The government has also often exercised
tight control over the social partners and employees’
organisations in particular, but there are still a number
of unions with considerable political and financial clout. of the Lebanese population remain without coverage.18 This
Lebanon is a member of the ILO and a signatory to most of includes the poorest and most vulnerable informal workers
its core conventions. Nevertheless, the implementation of and self-employed, who cannot afford private insurance.
good labour laws is hampered or delayed by slow political
processes.
IMPORTANT SECTORS FOR EMPLOYMENT
SOCIAL PROTECTION POLICIES GENERATION
Some sectors, such as agro-food processing, construction,
A number of public social security schemes linked to tourism and hospitality, ICT, creative industries and health
employment are available to the local working population. care could potentially make considerable contributions to
This includes the National Social Security Fund, Fund for job creation. This report profiles each sector and provides
Civil Servants, Fund for the Military, Fund for Teachers and information regarding their key actors, the potential for
two funds for security forces. Private insurance schemes growth and job creation, the skills required by companies
are also available, but at considerable cost to subscribers. in the sector and a strengths-weaknesses-opportunities-
Despite this multiplicity of programmes, around 50 per cent threats (SWOT) analysis.
RECOMMENDATIONS
The recommendations are intended to support international donor organisations as well as public and private sector
institutions in Lebanon that are engaged in analysing, preparing and adapting development measures designed to
improve the Lebanese employment environment. Some of the key recommendations have been selected for this
executive summary. The full list and detailed explanations for the key recommendations may be found in Chapter 8.
Recommendations: framework conditions
ACTOR POTENTIAL APPROACH
Infrastructure
Relevant ministries
Provide technical assistance for infrastructure projects (capacity-building
(e.g. transport, economy and
& implementation support for CIP).
trade, etc.), municipalities
Institutional framework
Relevant ministries and national

organisations, associations, com- Organise and finance sector-specific public-private dialogues.
panies
Investment climate and business environment
Support policymakers and public institutions in improving the business

Public institutions like IDAL
environment.
17
Recommendations: Demand side
Employment potential in MSME
Chambers of Commerce, Support selected value chain approaches (increasing the quality and
training providers, international quantity of products and companies, especially in rural areas; coordination
donors with other donors such as USAID).
Entrepreneurship promotion
Incubators, accelerators, Create incubation programmes for start-ups in selected sectors (e.g., IT,
universities, municipalities, health and agri-business, especially in areas outside of Beirut and for
business associations necessity entrepreneurs), offer support within the start-up ecosystem.
Export and trade promotion
Help strengthen the quality-assurance infrastructure in selected export-

Chambers of Commerce. oriented sectors, especially outside Beirut and Mount Lebanon (e.g.,
Sectoral associations metrology, standardisation, accreditation, testing and certification).
IDAL Help strengthen export and investment agencies’ capacities.
Employment in the informal sector
Support the implementation of the planned law giving companies incentives

Ministry of Economy and Trade
to formalise.
Provide management-skills training for selected informal sectors with growth

Training providers potential and support co-operatives in rural areas in areas such as business
creation, capacity-building.
Microfinance Institutes,
Provide financial-readiness training and links to micro-finance programmes.
Training provider
Recommendations: Supply side
Higher education
Establish collaborations between universities and companies for research

Higher-education institutions, private
and development purposes or idea competitions, thus enhancing exchange
sector employers
of experience and innovation
Higher-education institutions, private Establish links with private sector entities, encourage job fairs, highlight
sector organisations, employers success stories and promote internships as part of the university curriculum.
Vocational training
Create or fund awareness-raising programmes regarding the benefits

MEHE, INGOs
and potential of vocational training, targeting families and employers.
Improve resource-allocation efficiencies in public TVET programmes by

MEHE/Directorate of Vocational Ed-
limiting the number of schools offering the same occupations to a small
ucation
number of students and rather cluster schools.
Help establish closer links between TVET programmes and the private sector,
MEHE/ Directorate of Vocational Ed-
especially large companies, so as to ensure students receive practical training
ucation and private sector
and placement after graduation.
Life and soft skills training
MEHE, higher-education and TVET

Include soft and life skills in training programmes and curricula.
training institutions
INGOs, private sector, Provide mentoring services after the conclusion of training programmes,
associations especially for youth and women from vulnerable backgrounds.
Skilled emigration
Create programmes training company employees to take on middle-

INGOs and private sector
management tasks and provide incentives to stay in Lebanon
Create programmes creating incentives for diaspora members to return

Private sector and NGOs,
and found/co-found companies, or otherwise engage in local employment
Associations
creation.
Labour immigration
Provide funding for work programmes with a balanced participation of

Donors, INGOs, NGOS
refugees and native Lebanese.
INGOS, Associations Create programmes to ensure good labour conditions for foreign and refugee
and Unions workers; create awareness among workers about their rights.
19
Cultural perception of jobs and work
Create society-wide awareness-raising programme focusing on breadth of well-

Education institutions, INGOs
remunerated existing and future jobs. Make clear that professions beyond law,
and MEHE
medicine and engineering are relevant to the country and society.
Gender-specific aspects
Create comprehensive vocational and life/soft skills training programmes and

INGOs mentorship services specifically targeting women, especially those who have
never received or had access to training.
Support measures that enable women at all stages of life and in all areas of
Private sector and INGOs Lebanon to participate in the labour market; this must include the provision of
safe transportation, child care services and safe working environments.
Recommendation: Labour-market matching
Labour-market information
Establish a regularly updated and centralised labour-market information system

at a public institution (NEO or MoL). This should contain key quantitative statistics
NEO (lead), private sector
such as employment rates by age group, gender
and sector, as well as unemployment rates.
Career guidance
Create a career redirection and skills-matching system for job seekers who are
unable to find a job in the profession for which they are trained, or who are
NEO
returning to Lebanon after some time abroad. This should be part of NEO’s
service portfolio.
Job search
Encourage companies, organisations and placement/ recruiting agencies to

advertise open positions with NEO, thus creating a central platform listing all
available jobs. Ask companies what incentives would be necessary to persuade
NEO, private companies them to use NEO’s services and platform. A platform of this kind would make the
job market more transparent.
As a corollary, all job seekers should be registered in order to provide them with
job-matching services.
Recruiting and retaining staff
Create awareness-raising programmes highlighting the benefits deriving

from investment in training and open corporate cultures, and which provide
Chambers of commerce, ALI
information on future job opportunities (modern workplace tasks and organisation,
digitalisation, decline of hierarchies, etc.)
Provide companies of all sizes with training on good recruiting and employee-
International donor organisations
retention practices. Provide MSMEs in particular with support in establishing
(lead), chambers of commerce,
basic human-resources structures and processes that meet modern workplace
ALI
requirements, for example by distributing responsibilities across teams.
Wages and collective bargaining
International donor Provide unions with capacity-building training, with the goal of helping them
organisations, ECOSOC recover a meaningful collective-bargaining role.
Social protection
Support the government in its efforts to reform the National Social Security Fund,
International donor organisations
so as to provide broader and better protection.
21
FRAMEWORK
CONDITIONS
FOR EMPLOYMENT
GENERATION
23
FRAMEWORK CONDITIONS
FOR EMPLOYMENT GENERATION
What are the economic and political framework conditions in Lebanon? How do they promote growth and job
creation and to what extent do they hinder a flourishing economy? This chapter provides a brief overview of the
framework conditions for employment generation. It will describe the challenges and opportunities in Lebanon that
are associated with the economic and political situation, infrastructure conditions, the investment climate as well
as the government’s economic policy approach.
ECONOMIC SITUATION
Lebanon is a small, primarily consumer market dominated by services and trade and a high dependence on imports. Over
the last decade, growth has been characterised by highly volatile and uneven development to the gross domestic product
(GDP) (see Figure 2). This was mainly the result of an unstable political situation, although structural problems discussed
later in this chapter have also played an important role. The crisis in Syria has cut off Lebanon from export markets, slowed
the country’s economy, raised social tensions and put pressure on the labour market. Traditional growth drivers like finance,
real estate, construction and tourism have been hit hard by the ongoing Syrian conflict.19
Figure 2: GDP development 2008 - 2017
Source: IMF Datamapper, Real GDP Growth, https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/

ADVEC/WEOWORLD/LBN, accessed 07.12.2018
It must be stated that many studies have a very narrow view (e.g., the Investment in Infrastructure Conference).
on the effects of the Syrian crisis and focus primarily on
negative effects. From a systemic point of view, the crisis Lebanon’s main economic sector is the service sector (72.5
has also positive effects on the entire economic system. per cent of GDP; 2017), followed by industry (22.6 per cent)
This includes, for example, generating a higher demand and agriculture (4.9 per cent). Real estate comprises the
for consumer goods and local services which creates largest service sector, accounting for 13.7 per cent of GDP
employment in selected sectors, the development of a new from 2004 to 2016, on average. This is followed by wholesale
entrepreneurial (yet informal) niche, an influx of international and retail (13.4 per cent of GDP), public administration (9.4
short-term aid and an increase in structural investments per cent) and financial services (7.3 per cent).20
72.5%
SERVICE
22.6%
INDUSTRY
4.9%
AGRICULTURE
REAL ESTATE
COMPRISES
THE LARGEST
SECTOR SECTOR SECTOR SERVICE
13.7%
ACCOUNTNG
13.4%
WHOLESALE
9.4%
PUBLIC
7.3%
FINANCIAL
SECTOR AND RETAIL ADMINISTRATION SERVICES
the movement of capital has created a strong and highly

MAIN ECONOMIC PATTERN AND liquid banking system and investment sector.23 At the same
CONSTRAINTS FOR EMPLOYMENT time, the peg has negative effects on productivity and export
GENERATION competitiveness (see Chapter on Employment in international
trade).
The structural composition of the Lebanese economy has
not been conducive to job creation in recent decades,
even during robust growth periods.21 The following section LOW PRODUCTIVITY AND HIGH PRODUCTION
lists some of the challenges to growth and employment
generation. COSTS
MACRO-FISCAL FRAMEWORK Production costs are affected by cost of land, labour, capital,
technology and management. All cost components, including
Lebanon features a frail macro-fiscal framework operating costs for electricity, are considerably higher in
characterised by high debt ratios and persistent twin deficits Lebanon than in neighbouring countries. On average, a
of government budget balance and current account balance. Lebanese manufacturing establishment spends about 3
Gross public debt was estimated at around 153 per cent of per cent of its input costs on fuel for the self-generation of
GDP by the end of 2017, a figure exceeded only by Japan electricity. Many domestic producers have also not invested
and Greece on global comparison. Debt service for the in modern productivity-enhancing technologies that would
government reaches about 10 per cent of GDP annually, counter the loss of competitiveness. Lebanese products
consuming about half of domestic revenues. In other words, are therefore less competitive, even in the local Lebanese
the government has very limited financial capacity to provide market. These high production costs are one of the main
much support for the economy and the private sector. problems facing the industrial sector.24 The International
Furthermore, the Lebanese economy depends heavily on Labour Organisation (ILO) notes that ‘the higher real
capital and financial inflows to finance its current account exchange rate of the Lebanese pound has had the effect
deficit. This dependency on deposits exposes the country of increasing demand for imported goods, some of which
to significant foreign exchange and refinancing risks.22 compete with domestic goods, as well as the demand for
Before the 1975 war, Lebanon had a floating exchange rate domestic services such as housing, health care, education,
regime. However, as a result of hyperinflation in the 1980s, transportation, etc. This has had the tendency to raise
the country began pegging its currency, the Lebanese the costs of such services and to draw labour and capital
pound (LBP), to the United States dollar (USD) at the towards producing more of such services and away from
end of 1997. The monetary stability this has brought is an export-oriented activities like manufacturing and agriculture,
important factor in Lebanon’s economic attractiveness. The where the potential for productivity gains is greatest.’25
absence of foreign exchange controls and restrictions on
25
HIGH INEQUALITY AND RENTIER ECONOMY
Economic growth in Lebanon has been accompanied each of which have significantly lower per capita income
by strong income inequalities and significant regional levels.
disparities. Lebanon is a rentier economy in which the
productive sectors play a minimal role and wealth is The poverty rate has remained nearly unchanged for the
composed mainly of financial and real estate wealth. The past 25 years with extreme poverty fluctuating between 7.5
disconnect between activity in real estate (not including to 10 per cent over this period. Poverty levels are highest in
construction) and widespread job creation is observed the north and south, and in small, dense suburban pockets
across the region. A World Bank study showed that while in large towns.28 Poverty rates in the Bekaa Valley (38 per
the real estate sector accounted for around 33 per cent of cent), North Lebanon (36 per cent) and South Lebanon (31
Foreign Direct Investment inflows to the Middle East and per cent) are well above the national average and around
North Africa (MENA) region, it contributed to only 5 per twice as high as in Mount Lebanon (22 per cent) and Beirut
cent of job creation.26 When the inequality adjusted income (16 per cent). These poverty levels are closely linked with
index27 is taken as a measure for comparison, Lebanon labour market outcomes, higher unemployment, and a
scores lower than Turkey, which is at a similar per capita significantly higher reliance on self-employment.29
income level, and lower than Egypt, Tunisia, and Jordan,
FREE MARKET ECONOMY, BUT OLIGARCHIC HIGH RATE OF INFORMALITY

STRUCTURE
Lebanon is a free market economy with a laissez-faire Informality plays an important role in the Lebanese economy.
tradition and very limited trade restrictions. However, According to the World Bank, the informal economy accounts
oligarchic structures are deeply entrenched in Lebanon and for 36.4 per cent of GDP.31 Fifty per cent of the labour force
have been so for generations. Some 250 exclusive agencies works in the informal sector. This is mainly explained by the
protected by the 1967 commercial representation law limit excessive regulatory burden for labour markets and the low
the ability of small and medium sized enterprises (SMEs) to quality of institutions, but also by the failure of the state to
enter Lebanese markets where dominant competitors already deliver basic services as well as the high number of refugees
hold an advantage. Anti-trust and competition regulations that and foreign workers without residency or work permits (see
would foster the growth of SMEs are not fully implemented.30 chapter on Employment in the informal sector).32
INFRASTRUCTURE CONDITIONS
Until 1975, Lebanon had one of the most developed infrastructures in the region. But much of it was destroyed first in the
civil war between 1975 and 1990 and again in the 33 days of the 2006 war.33 Over 90 per cent of this infrastructure has since
been rebuilt, but low public spending on infrastructure, a consequence of the county’s debt burden and year-long delays in
adopting budgets, mean that the current infrastructure capacity lags behind the demand.34
around USD 2.5 billion in the informal substitute market

OBSTACLES TO GROWTH AND for electricity.36 The lack of reliable electricity in Lebanon
EMPLOYMENT GENERATION is considered to be the second biggest obstacle to private
sector growth – after political instability. With more than
As a result, the quality of Lebanon’s infrastructure is 1.2 million vehicles and no efficient transport system,
considered among the poorest regionally and globally. Out traffic congestion constitutes another obstacle to growth.
of 137 countries, Lebanon ranks 130th in quality of overall The World Bank estimates that traffic congestion and high
infrastructure with quality of electricity supply at 134th, quality transport costs cost the economy between 5 and 10 per
of roads at 120th and quality of mobile-cellular telephone cent of GDP annually and are a key contributor to poverty
subscriptions at 104th.35 in the country.
In Lebanon, there are significant deficiencies in key basic The country’s poor infrastructure increases SMEs’ costs
services, including electricity, water supply, sanitation, and hampers their competitiveness in other countries in
transport, waste management, telecommunications and the region. The lack of infrastructure slows down both
others. The majority of households – 92 per cent – have productivity and income growth, forestalls improvements to
inconsistent access to power supply. living standards for residents as well as companies’ ability
to create jobs.37
In 2017, the peak of electricity demand surpassed 3,400
megawatt (MW) while the average capacity produced was
only 2,066 MW. This results in systematic blackouts that
involve extensive costs for those who use private generators.
The annual household spending on private generators is
industry (i.e., furniture, agro-food processing and recycling)39
CURRENT AND PLANNED INVESTMENTS
The largest project is currently the Tripoli Special Economic
Despite the challenges, Lebanon is working to improve its
Zone (TSEZ) that started in 2008, when the TSEZ law was
infrastructure. Over the last years, the country renovated
approved. The zone will be established on a 50-hectare
roads, expanded its port infrastructure and set up industrial
site adjacent to the port of Tripoli; infrastructure works are
parks. Major infrastructure investments are discussed in this
supposed to be finalised in 2020. The TSEZ is planned as
chapter.
a logistic free zone that will also feature an industrial park
in order to attract foreign and domestic investments in
There are four main ports in Lebanon; the largest are Beirut
manufacturing and related activities.
and Tripoli. With a total area of 1.2 million m2 including four
Lebanon plans several large infrastructure investments in the
basins, 16 quays and a new container terminal capable of
future. One such plan is the Capital Investment Programme
handling 1.7 million twenty-foot equivalent per year, the port
(CIP) that foresees investments of USD 16 billion over 10
of Beirut is one of the largest in the eastern Mediterranean.
years. It includes over 280 infrastructural projects in the
As Lebanon’s second largest port, Tripoli is currently
areas of energy, transport, water, wastewater, solid waste
undergoing a major expansion that will help make it a leading
treatment, telecommunications, special economic zones,
container terminal for regional shipping.38
and culture and tourism. Geographically, the CIP covers
the whole of Lebanon, with some projects designated as
Some 131 industrial zones have been established in Lebanon
national and others as local.40
in recent years. Nearly half of them are located in Beirut and
Mount Lebanon, about one-quarter in North Lebanon, and
In April 2018, 50 countries and international organisations
the remainder are split between the Bekaa Valley, South
took part in the international conference in support of
Lebanon and Nabatiyeh. Lebanon has also established
Lebanon development and reforms (Conférence économique
special economic zones which operate under the Office
pour le développement, par les réformes et avec les
of the Prime Minister. The first of these, Beirut’s Logistics
entreprises, CEDRE). The objective of the conference
Free Zone, is operated by the port of Beirut. Open to foreign
was to support economic development in Lebanon as part
ownership (potentially up to 100 per cent), it offers customs
of a comprehensive reform plan involving infrastructure
exemptions. In 2016, the Ministry of Industry, in partnership
investments. The Lebanese government is expecting
with the United Nations Industrial Development Organization
an important milestone for Lebanon’s development and
(UNIDO), launched an initiative to establish industrial parks
economic revival based on the agreed-upon financing for
in three locations in the Bekaa Valley: El Qaa, Baalbek and
infrastructure. 41
Terbol. These industrial zones focus on the manufacturing
DEMOGRAPHIC DEVELOPMENT
There is no accurate data on demographic development for Lebanon. This is due in part to concerns regarding both political
and sectarian cleavages. Fears of inflamed tensions have meant that no official population census has been conducted
since 1932.42 At the same time, the massive and unmonitored influx of Syrian refugees in recent years is a challenge for the
country’s statistical office. As a result, private institutions and international organisations collect and publish estimates of
demographic data in reports which partly lack rigorous methodology or representative sample sizes. In terms of demographic
data, Lebanon is unique in two ways that influence the labour market in both the short and long term.
LEBANON HAS THE LARGEST GLOBAL LEBANON HOSTS THE HIGHEST PER CAPITA
DIASPORA RATE PER CAPITA POPULATION POPULATION OF REFUGEES IN THE WORLD.
GLOBALLY.
This has an impact on the labour market, even if the
duration of the effect cannot be estimated. The World Bank
The large size of Lebanese diaspora population is in part
and national officials estimate the total refugee population
a factor of the country’s historical and cultural position as a
reached some 1.5 million by 2017. This included non-
gateway between Europe and the Middle East. In addition,
registered Syrians and in addition to the 174,400 Palestinian
the country has witnessed several periods of displacement,
refugees. Today, one person out of three in Lebanon is a
particularly during the civil war of 1975-1990, which have
displaced Syrian.44
resulted in more Lebanese living outside of Lebanon than
in the country. Estimates range from 8.6 million direct
According to the UN Department of Economic and Social
emigrants to up to 14 million descendants of emigrants.43
Affairs (UN DESA), the total population of Lebanon was
estimated to have grown by 40.23 per cent from 2010 to
This emigration has effects on the labour market by, on the
2017.45 As a consequence of this influx of refugees, the
one hand, relieving pressure regarding employment creation
country’s population pyramid changed both in absolute
and, on the other hand, creating a ‘brain drain’ that affects
and in relative terms. The population pyramid is expanding
companies seeking skilled personnel (see chapter on Labour
slightly for those aged between 20 and 39 and constricting
migration and labour mobility).
for those aged 0 and 19 (see Figure 3).
27
Figure 3: Population pyramid 2010 (left) and 2017 (right)
Source: UN DESA, World Population Prospects 2017
Depending on what happens politically and economically in Syria and Lebanon, the demographic changes observed in
recent years may be not longstanding. UN DESA assumes that 40 per cent of Syrian refugees will return in 2020-2025,
30 per cent in 2025-2030 and 10 per cent in 2030-35 (see Figure 4). With the remaining 20 per cent, the pyramid will –
presuming this scenario becomes a reality – again change in the medium term.
Figure 4: Estimated population development
Source: UN DESA, World Population Prospects 2017

All these factors combined result in political instability, weak
POLITICAL SITUATION public institutions, a lack of dialogue and trust between public
institutions and the private sector and deters the private
Lebanon’s complex political situation has strong effects on sector and investors from taking long-term investment risks.
the institutional capacity to address economic reform needs
and support private sector development. Unrest and security The World Bank states that ‘sectarian interests are
issues have destabilised Lebanon’s political institutions. prioritised over the equitable and adequate provision of
Lebanon continues to suffer from the prolonged effects of services, transparency, and accountability - confession-
the civil war of 1975-1990, the consequences of the 2006 driven staffing of public institutions at the expense of merit-
war and the armed conflict in Syria under way since March based criteria impedes the state’s ability to deliver quality
2011. Political processes have been very slow in recent public services.’47
years. Parliamentary elections scheduled for mid-2013 were
delayed until May 2018 due to a political deadlock over The Global Competitiveness Index lists Lebanon’s
redesigning the electoral law. It then took until late January institutional setting as one of the major obstacles for doing
2019 to form a government as a result of disputes between business in Lebanon.48 Lebanon is listed at the bottom end
the parties about the distribution of ministries and other of most of indicators measuring the performance of state
fundamental questions. Another challenge is the large influx government and institutions (e.g., efficiency of government
of Syrian refugees, which has exacerbated political divisions spending, transparency of government policymaking or
along religious lines. The social structure of Lebanon and public trust in politicians, see Table 1).
the underlying tensions between confessional groups and
political loyalties remain a major issue in decision-making
and policy implementation at the national level.46
Table 1: Global Competitiveness Index, Institutions
Index Component Rank/137 Value Trend
1st pillar: Institutions 124 3.2
1.01 Property rights 77 4.2

1.02 Intellectual property protection 120 3.2
1.03 Diversion of public funds 98 2.9
1.04 Public Trust in politicians 128 1.7
1.05 Irregular payments and bribes 121 2.8
1.06 Judicial independence 105 3.1
1.07 Favoritism in decisions of government officials 126 2.0
1.08 Efficiency of government spending 130 1.8
1.09 Burden of government regulation 109 2.9
1.10 Efficiency of legal framework in setting disputes 105 3.0
1.11 Efficiency of legal framework in challenging regulations 120 2.5
1.12 Transparency of government policymaking 124 3.1
1.13 Business costs of terrorism 131 3.1
1.14 Business costs of crime and violence 109 3.7
1.15 Organized crime 109 4.0
1.16 Reliability of police services 109 3.5
1.17 Ethical behavior of firms 104 3.4
1.18 Strength of auditing and reporting standards 79 4.4
1.19 Efficacy of corporate boards 111 4.3
1.20 Protection of minority after shareholders’ interests 97 3.7
1.21 Strength of investor protection 0-10 (best) 116 4.0
Source: World Economic Forum (2018): The Global Competitiveness Index 0217-2018.
29
INVESTMENT CLIMATE AND BUSINESS ENVIRONMENT
Due to all the factors mentioned heretofore, the situation for businesses and the investment climate have been difficult
for years and many observers warn that they are deteriorating. A comparison of international benchmarking data
underscores this assessment (see Table 5). From 2013 to 2018, Lebanon has fallen in all rankings.
Table 2: Scorecard for international benchmarking reports
BENCHMARK 2013 2014 2015 2016 2017 2018 LATEST

REPORT RANK RANK RANK RANK RANK RANK CHANGE
GLOBAL
COMPETITIVENESS
REPORT 91/144 103/148 113/144 101/140 101/138 105/137 -4
(World Economic
Forum)
EASE OF DOING
BUSINESS 115/185 111/189 104/189 123/189 126/190 133/190 -7
(World Bank)
GLOBAL INNOVA-
TION INDEX 75/142 77/143 74/141 70/128 81/127 90/126 -9
(Cornell et. al)
Sources: World Economic Forum (2017) The Global Competitiveness Report 2017-2018; World Bank (2017) The Ease of Doing Business Ranking;
Cornell University, INSEAD, and WIPO (2018): The Global Innovation Index 2018: Energizing the World with Innovation.
Aside from having made modest improvements in terms of starting a business and getting credit, Lebanon has not made
progress in any other Doing Business indicator since 2006. Lebanon performs poorly in eight out of 10 different dimensions
in the Doing Business study.
According to the Executive Opinion Survey of the World Economic Forum (2017, see Figure 5), the most problematic factor
for doing business are therefore government instability, corruption, infrastructure, bureaucracy and political instability.
Figure 5: Most problematic factors for doing business in Lebanon
Source: World Economic Forum (2017):

The Executive Opinion Survey 2016: Views of the Business Community on the Global Risks of Highest Concern for Doing Business.
These major constraints are confirmed by Lebanon’s But there are also positive aspects regarding the country’s
business associations and chambers, each of which stress framework conditions. Many international institutions (e.g.,
different areas. The Association of Lebanese Industrials World Bank, OECD) have noted the country’s service
(ALI) mentions as general obstacles high production costs, orientation and its open economy as assets. According to the
access to finance, missing R&D support and, in particular, Global Competitiveness Index, the strongest points of the
the lack of efficient export promotion. The Chamber of formal Lebanese economy are its business sophistication
Commerce, Industry and Agriculture Beirut (CCIB) identifies (i.e., local supplier quantity, value chain process sophistication
as key obstacles the shortage and high costs of electricity, and competitive advantages), technological readiness
the high cost of production, lack of judicial reform, high and ability to create innovation. At least the medium sized
public debt and a lack of financing Regarding Foreign Direct and large Lebanese companies have adapted to difficult
Investment (FDI), the state-owned Investment Development situations and are resilient. Disadvantages in the framework
Authority (IDAL) identifies security, bureaucracy and conditions are compensated by creativity, entrepreneurial
corruption as main bottlenecks. spirit and marketing capacity.
ECONOMIC POLICY AND STRATEGIES

Despite the country’s socio-economic and political Currently, the most comprehensive private sector
difficulties, initiatives are being taken to develop solutions development strategy is ‘The Lebanon SME Strategy – A
for overcoming economic, employment and labour market- Roadmap to 2020’ that has been adopted since 2014.
related problems. Indeed, several national strategies have Lebanon’s National SME Strategy is driven by an ambitious
been developed in the last years. strategic vision of ‘SMEs as key economic engines for
growth and job creation’. To achieve this vision, the strategy
In terms of a long-term economic and industrial strategy, the defines a mission for all stakeholders that calls for ‘fostering
government commissioned the consulting firm McKinsey the creation of vibrant and globally competitive SMEs that
to develop a wide-ranging, long-term plan to diversify and contribute to employment opportunities and a high value-
modernise the productive sectors of Lebanon’s economy. added economy’. From a support perspective, multiple
The report, ‘Lebanon’s Economic Identity and the Procedures initiatives assist the implementation of the programme.
to Achieve It’, was published in January 2019.49 The Status of SME Strategy implementation is periodically
monitored. A list of initiatives that are an integral part of
In 2018, Lebanon adopted a large CIP designed to address the strategy can be found in the chapter on actors on the
the challenges of the Syrian crisis, develop Lebanon’s demand side of the labour market.52
infrastructure and public services, stimulate economic
growth and create jobs. The plan was presented to the donor To date, Lebanon has not developed a national plan
community at the CEDRE conference in Paris in April 2018 for implementing the United Nations’ Agenda 2030 and
and is one of the largest investment plans seen in recent Sustainable Development goals (SDG). As a consequence,
decades. However, many non-governmental organisations the private sector strategies are not aligned with the goals
(NGOs) have expressed concern that the employment it of labour-relevant SDG 8 ‘Decent work and economic
creates is ‘likely to be precarious, low-skilled and temporary, growth’ and SDG 9 ‘Industry, innovation and infrastructure’.
whereas Lebanon needs to enhance productive sectors that Nevertheless, in 2016, a national committee titled ‘SDGs
can generate sustainable and decent jobs.50 in Lebanon: Analysing Gaps and Reporting Progress’ was
established by the government with the support of the Council
With support from the United Nations Industrial Development for Development and Reconstruction and United Nations
Organization (UNIDO), Lebanon’s Ministry of Industry Development Program (UNDP) to lead the implementation
formulated an integrated vision for the country’s industrial of the 2030 Agenda.
sector to be realised by 2025. This strategic document aims
to guide and support industrial sector development while
also defining the industry’s role in achieving inclusive and
sustainable development.51
31
SUMMARY OF CHALLENGES AND OPPORTUNITIES
The challenges and opportunities in the framework conditions of Lebanon are summarised in the table below.
Table 3: Framework conditions – challenges and opportunities for employment generation
CHALLENGES OPPORTUNITIES
Economic situation
• Low GDP growth rate of 1-3 per cent since 2011

• Small, primarily consumer market
• High import dependency
• High inequality and regional disparities

• Free market economy and strong laissez-faire tradition
• Unrest and continuous political crisis keep private
sector and foreign investors from taking investment with minimal restriction and safeguards, except for a few
risks industries
• Oligarchic structures and reduced competition in • Robust banking system

selected sectors
• Unstable macro-fiscal situation with high public

debt rates
• Low productivity, high production costs
• High inequality and rentier economy
Infrastructure
• Poor infrastructure quality (130th out of 137 coun-

tries, Global Competitiveness Report) • International sea ports
• Systematic blackouts result in costs and traffic con- • Industrial parks and special economic zone projects
gestion; high transport costs affect SME competi- • Capital Investment Programme (CIP) and Investment
tiveness in Infrastructure Conference (CEDRE), approx. USD
• Very high public debt limits government interven- 16 billion over 10 years
tion capacity
Demographic development
• Abrupt increase in labour force due to high influx of

refugees
• Relatively young workforce
• Financial support from the diaspora for families
• Brain drain through skilled emigration
Political situation
• General political instability
• Political divisions along religious lines and serious

political differences over the Syria question
• Lebanon ranks among the bottom in most indicators

measuring the performance of state government and • High international support due to Syrian crisis
institutions (e.g., efficiency of government spending,
transparency of government policymaking or public
trust in politicians)
• Weak public institutions/implementation oflegi slation
• Missing dialogue and trust between institutions and

private sector
• Some progress in terms of ‘starting a business

and getting credit’ indicator; Lebanon scores best
in indicators measuring business sophistication,
technological readiness and innovation
• Poor performance in international benchmarking
(Lebanon ranks 105th of 137 countries in terms of • Lebanon’s private sector is adapted to difficult
overall competitiveness) situations and has a high economic resilience
• Disadvantages of framework conditions are

compensated for by innovation, creativity and
marketing capacity
Economic policy and strategies
• McKinsey study to diversify the Lebanese economy

• Lack of a coherent national development strategy as • Existing national strategies (SME, Technical and
framework vocational education and training (TVET), CIP,
industrial development strategy etc.)
33
LABOUR
MARKET
TRENDS
35
LABOUR MARKET TRENDS
What are the most important characteristics of the Lebanese labour market?
How has it changed over the last few years? This chapter provides an overview of some key indicators and some
recent trends within the Lebanese labour market. It additionally gives an overview of overall employment and
youth unemployment figures, female labour-market participation rates, and child-labour statistics.
It is important to keep in mind that the statistics on employment and labour-market trends in Lebanon are outdated
and contradictory. Thus, one needs to be careful when interpreting the data. The most recent official labour-market
survey was published in 2009.53 The International Labour Organisation (ILO), on its ILOSTAT portal in the Key
Indicators of the Labour Market (KILM) section, models estimated data based on the 2009 figures.54 One must be
aware that this data is extrapolated and may not reflect actual numbers due to the unusually high increase in the
number of refugees since 2009 and the slow-down of the country’s economy.
EMPLOYMENT FIGURES Figure 6: Status of employment of Lebanese (2007)
The UN estimates the Lebanese population at around

4.68 million people (2017), and the ILO estimates the total
number of people employed at about 2.061 million people
(15 years+, 2017).55 This is a low employment-to-population
ratio of 44.1 per cent (ILO modelled estimates).
In addition to the native Lebanese labour force, there are

between 1 million and 2 million Syrian refugees, 174,400
Palestinian refugees, about 22,000 refugees from other
states (mainly Iraq), and about 300,000 foreign workers.
More information about the situation and the impact of
migrant workers and refugees will be provided in the chapter
on Labour migration and labour mobility.
Figure 6 shows the shares of different types of work: 62 per

cent of Lebanese are employed, 10 per cent are employers,
23 per cent are self-employed and 4 per cent contribute to
family businesses.56
Source: ILO, Key Indicators of the Labour Market
Although the available statistical data varies, the private though without having real data to back up their statements.
sector accounts for roughly 85 per cent of the labour force in According to a survey conducted in collaboration with
Lebanon.57 Accounting for 76.49 per cent of total employment, the Lebanese Army, an estimated 660,000 people are
the service sector is the most important employer, followed unemployed, which would total 36 per cent of the population
by industry (20.27 per cent) and agriculture (3.24 per cent).58 (counting only Lebanese nationals, and not making a clear
distinction between the unemployed and the economically
inactive).60
UNEMPLOYMENT
The underlying problem is that there are no current
Based on its models, the ILO estimates the total
employment statistics. A study on labour-market statistics
unemployment rate to be 6.6 per cent (2017, among
conducted in 2018/2019 by the ILO and the Central
Lebanese 15 years old and above). This translates into an
Administration of Statistics (CAS) will provide comprehensive
absolute figure of 147,000 unemployed people. The rate is
insights into the labour market – but this study will soon be
lower among men, at 5.4 per cent, compared to 10.4 per
outdated again. As long as there is no system to collect
cent among women.59
labour-market data regularly, it will be very hard for labour-
market actors to direct their policies, planning and activities
However, this rather low estimated total unemployment
to the real needs of companies, entrepreneurs and job
percentage is contested by many institutions in Lebanon,
seekers.
as the numbers are based on a 2009 survey and do not
account for the influx of refugees and the economic crisis.
As an example, one interview partner noted that three
different ministers respectively cited unemployment rates of
25 per cent, 30 per cent and 35 per cent on the same day,
YOUTH EMPLOYMENT
The development of unemployment rates in Lebanon as illustrated in Figure 7 shows that this is not a problem that
emerged suddenly in the wake of the recent crises. As in many other countries, it is a structural problem that has existed
for a long time.61 The figure below also shows that the youth unemployment rate is 3 to 4 times higher than the total
unemployment rate, and that the unemployment rate among men is slightly lower than the total unemployment rate.
Figure 7: Unemployment rates for Lebanon, 1991-2015 (total, youth, disaggregated by sex)
Source: ILO (2015): Key Indicators of the Labour Market (KILM) 2015,
tables 9a and 10a.
The Lebanese job market is not able to create as many Unemployment rates are higher among higher-educated
jobs as there are new entrants within the job market. An youth: 21.8 per cent of upper-secondary graduates and 36.1
estimated 11,000 to 15,000 new jobs have been created per cent of university graduates are looking for work.65 Several
annually over the last 10 years, but the number of annual interview partners explained why unemployment rates are
university graduates over the same period was estimated at so high among university graduates, citing mismatches in
between 23,000 and 43,000.62 In addition, job creation has job profiles and labour demand, as well as students’ high
been concentrated in low-productivity activities that demand expectations with regard to wages and responsibility. Many
low-skill labour,63 and has been more limited in higher- graduates thus leave the country; it is estimated that up to
productivity sectors such as communications, financial 44 per cent of Lebanon’s tertiary-educated population has
services and manufacturing.64 The annual gap of 8,000 to migrated abroad.66
31,000 missing jobs is hard to fill, especially in the current
low-growth economic environment.
37
CHILD LABOUR
As a result of the Syrian crisis, the number of children engaged in child labour has risen in Lebanon. The main factor
driving child labour is financial constraints: The economic situation drives families into poverty and forces them to rely on
their children’s contribution to the household’s income. On farms and in family businesses, child labour is not considered
unusual, as children have been supporting their parents for centuries in these settings.67
Nor is child labour only a phenomenon among Syrian refugees. As Figure 8 shows, children who are native Lebanese,
Palestinian refugees from Syria (PRS) or Palestinian refugees from Lebanon (PRL) all work long hours for low wages,
often doing hazardous and hard work, depriving them of education.
Figure 8: Percentage of children and youth aged 5-17 engaged in child labour during last week before being
interviewed across population groups
Source: UNICEF Baseline study, https://data2.unhcr.org/en/documents/

download/49509 Interagency Coordination, In focus – child labour,
November 2018; Survey based on sample size of 23,580 households
(detailed methodology in baseline study)
In the current situation in Lebanon, it seems impossible to labour, children are taught to be more resilient while working
eradicate child labour. Indeed, the United Nations Children’s (and oftentimes also living) in the streets and under difficult
Fund (UNICEF) has observed a change in the perception circumstances. UNICEF is doing awareness-raising work
of child labour; while it was the aim to end child labour in with employers; for example, in Saida, where children are
Lebanon for many years, it is now ‘accepted’ that children working in coffee shops, pressing employers to reduce
have to contribute to their families’ income. Companies even children’s’ working hours, allow them to take breaks and
believe they are doing families a favour when employing prevent them from engaging in dangerous work.
their children. As it does not seem possible to end child

It is difficult to describe current labour trends in Lebanon accurately, as there so few reliable data points. Yet, some
challenges such as the high unemployment rates within certain population groups are obvious, and agreed upon by all
stakeholders.
Table 4: Labour trends – challenges and opportunities for generating employment
Employment
• Low employment-to-population ration of 44.1 per • 33 per cent of working population are entrepreneurs
cent or freelancers
Infrastructure
• No current labour-market data
• Most likely, high unemployment rates of 20+ per cent • Low official unemployment rate of 6.6 per cent
• No system to collect data on employment situation
Demographic development
• High rates of youth unemployment: 21.8 per cent

among upper secondary graduates, 36.1 per cent
among university graduates
• Too little job creation to provide jobs to all graduates;

number of new jobs lower in high-productivity jobs • High number of well-qualified young people with a
than in low-productivity jobs high rate of university degrees
• Mismatch of qualifications, expectations and job of-
ferings
• High emigration rates among skilled Lebanese grad-

uates and young professionals: 44 per cent of uni-
versity graduates have left.
Child labour
• Increasing rates of child labour due to families’

financial situation • Donor programmes are seeking to improve working
• Increased acceptance of fact that child labour conditions, strengthen resilience and provide access
cannot be ended in the current environment, and of to education
child labour per se
39
THE LABOUR
DEMAND SIDE:
THE IMPACT
OF BUSINESS
AND SECTOR
DEVELOPMENT
ON EMPLOYMENT
GENERATION
41
THE LABOUR DEMAND SIDE: THE
IMPACT OF BUSINESS AND SECTOR
DEVELOPMENT ON EMPLOYMENT
GENERATION
What contextual factors support the growth of companies in Lebanon so that they can create jobs? What framework
conditions help companies thrive and foster the creation of new companies that provide employment? What keeps
companies from creating jobs?
This chapter provides an overview of the demand side of the labour market in Lebanon. It examines the
characteristics of the country’s private sector, economic growth and the job potential of its MSME sector. This
chapter also explores support for export activities, the extent to which new companies are being created, and the
role of the informal sector in job creation.
ACTORS
Lebanon features a large number of actors who intervene on the labour demand side through policy and strategy
development or business development and support services. Nevertheless, affordable business development services
remain underdeveloped, according to many interview partners (see the following chapters). The following table provides a
selection of the most important public and private actors:
Ministries and public institutions
INSTITUTION ROLE/TASKS
Tasked with administering economic affairs, the ministry is responsible for formulating, coor-
Ministry of Economy
dinating and implementing policies relevant to trade, economic and supply issues
and Trade (MoET)
The ministry is responsible for the planning and implementation of Lebanon’s industrial
development policy. The MoI plays a role in labour demand by providing support for SMEs
and larger businesses involved in industrial production. It does so by facilitating registration
processes and mitigating costs, particularly for those industries involved in export. The MoI
seeks to battle dumping policies and improve access to external markets by working towards
trade agreements and participating international fairs. To increase the competitiveness of
Ministry of Industry
products in local and foreign markets, the ministry is also involved in best-practices training
(Mol) for industrialists and providing certification through partner organisations QUALEB, IRI and
LIBOR.
The MoI is also the main institution involved in organising existing (private) industrial zones
and establishing public industrial zones in order to incentivise new industries and increase
employment opportunities in rural areas.
The ESFD project is part of the EURO-Med partnership established between the European
Commission and the Republic of Lebanon in November 2000. The ESFD reached out to the
Economic and Social poor through systematic and sustainable partnerships with competent intermediaries (e.g.,
banks, municipalities, NGOs). The job-creation component aims at creating employment
fund for development
opportunities by providing financial and non-financial services to SMEs. Loans are provided
(ESFD) to improve access to finance for productive and sustainable activities with significant impact
on poverty alleviation. Business development services are provided to ensure the viability
and sustainability of submitted projects.
Investment IDAL is the national investment promotion agency that was established in 1994 with the aim
of promoting Lebanon as a key investment destination, and with attracting, facilitating and
Development Authority
retaining investments in the country. IDAL is also entrusted with the active promotion and
of Lebanon (IDAL) marketing of Lebanese exports, including agricultural and agro-industrial products. IDAL
has the authority to grant special incentives, exemptions and facilities to large projects.
Business Support Unit In 2018, the Investment Development Authority in Lebanon launched a new Business Sup-
port Unit (BSU) to be located within its premises. The BSU will provide start-ups with market
information and free legal and tax/ accounting advice, as well as licensing support, to help
them establish and grow their companies in Lebanon.
Kalafat Kafalat is a Lebanese financial company with a public concern that assists SMEs with ac-
cessing commercial bank funding. Kafalat helps SMEs by providing loan guarantees based
on business plans or feasibility studies that demonstrate the proposed business activity’s
viability. Kafalat targets SMEs and innovative start-ups that belong to one of the following
economic sectors: industry, agriculture, tourism, traditional crafts, and high-tech.
Economic and Social The council comprises 71 members representing all sectors, associations, syndicates, vo-
cational and expatriate institutions. Its task is to prompt dialogue, co-operation and coordi-
Council of Lebanon
nation among various economic, social and vocational sectors.
(ECOSOC)
43
Private sector organisations and NGOs
The four Chambers of Commerce, Industry and Agriculture (CCIA) in Lebanon (Beirut and
Mount Lebanon, North Lebanon, South Lebanon and Bekaa Valley) are independent legal
Chamber of entities working for the public benefit to promote the development of business enterprises.
Commerce, Industry Most of their members are classified as SMEs. The CCIA’s strategy aims at stimulating all
and Agriculture (CCIA) sectors of economic activity and enabling them to contribute to the development of a strong
and competitive national economy. They serve Lebanon’s economy and private enterprises
through a diverse range of services and activities, including the provision of business
information and training.
The Association of Lebanese Industrialists, established in 1942, is the main national

Association of association of manufacturing companies operating in Lebanon. It deals with both economic
Lebanese Industrialists and social issues concerning business and advocates a policy of balanced industrial
(ALI) development for all Lebanese regions. The association seeks to create and maintain
an environment which is favourable to industrial investment, job creation, growth and
development.
SouthBIC is a standalone business development centre located in Saï da, with two outreach
locations in Nabatiyeh and Tyre. SouthBIC offers intensive incubation services to both start-
South BIC
ups and existing MSMEs. It offers physical incubation for companies located in SouthBic
and provides remote incubation to those not able to be located within SouthBIC.
Alfanar (‘beacon’ in Arabic) is the first venture philanthropy organisation in the Arab world that
provides funding, management support, mentorship and training to social enterprises across
all sectors with a focus on education, job creation and women’s economic empowerment.
Alfanar Alfanar also supports ecosystem players and the wider social entrepreneurship sector by
providing tailored advisory services around social entrepreneurship as well as its ASSET
programme (Alfanar Sustainable Social Enterprise Training). Any revenue generated from
these activities is used to subsidise grants to social enterprises.
Berytech is an ecosystem for entrepreneurs that provides a conducive environment
Berytech for the creation and development of start-ups and fosters innovation, technology and
entrepreneurship.
BIAT, an EU-funded project, is a not-for-profit organisation that was created in collaboration

Business Incubation
with MoET. Its Incubator and Business Development Centre provides entrepreneurs
Association Tripoli
assistance with financial, technical, marketing, accounting, training, and networking services
(BIAT)
in Tripoli and Akkar.
Bootcamp, a partnership between the Central Bank, AM Bank, and AltCity, was a two-
phase, idea-stage start-up training programme that helped aspiring entrepreneurs go from
idea to first customer and/or investor in the shortest time possible. Between 2015 and
Bootcamp 2018, Bootcamp graduated around 270 start-up teams of students and professionals aged
between 15 and 50 that collectively mobilised over USD 2.7 million in seed funding, resulting
in a combined valuation of more than USD 10 million (only taking into account start-ups that
had an external valuation event).
Flat6Labs Beirut is a start-up seed programme and an early-stage fund designed to

accelerate Lebanese start-ups’ growth and create a pipeline of possible investees to the
Flat6Lab Beirut rapidly growing Lebanese venture capital industry. Through its expansive network, Flat6Labs
Beirut also provides Lebanese entrepreneurs with the scaling opportunities to access wider
markets regionally and internationally.
Institut européen de
Active in Lebanon since 1989, IECD and its local partners lead several vocational training
coopération et de
and professional integration projects for young people, support for small businesses and
développement
provide access to education across Lebanon.
(IECD)
Other relevant players with private sector programmes include international donors such as the United States Agency
for International Development (USAID), UNIDO and the British Department for International Development (DFID).
45
POTENTIAL FOR GROWTH AND JOB
CREATION
Lebanon’s job-creation problem is mainly a demand-side problem, as economic growth currently does not generate enough
jobs for a growing workforce.
The private sector is therefore the key to comprehensive employment generation and creating sustainable and decent job
opportunities. In addition to examining support for the informal sector, this chapter analyses concrete potentials for growth
and job creation in MSMEs, entrepreneurship and export promotion.
EMPLOYMENT IN MSMES
Lebanon’s private sector, driven primarily by MSMEs and entrepreneurship. As shown in Figure 9, large corporates make up
only 3.5 per cent of all Lebanese companies, while MSMEs account for 96.5 per cent of the remaining companies.
Micro-enterprises comprise 73 per cent of all companies, small companies only 20 per cent and medium-sized companies
a mere 3.5 per cent.68
Figure 9: Private enterprises, by size Figure 10: Registered enterprises, by type
20%
3.50%
12.4%
3.50% 46.9%
73% 29.3%
Micro (<10 FTEs) Medium (<100 FTEs) LEGAL TYPE OF REGISTERED ENTERPRISES
Small (<50 FTEs) Large (>100 FTEs) Sole Proprietorship
Limited Liability Company
Source: Ministry of Economy and Trade (2018): MSME in Lebanon. Joint-Stock Company
Status, Strategy and Outcome; FTEs: Full-time equivalents Limited Partnership Total # of Entreprises
Offshore 70,062
Holding
A strong feature of Lebanese MSMEs is a family-centred Joint Venture
approach to owning and managing businesses. Many Private Limited Company
MSMEs keep their capital base closed and remain All Others - Mainly Trade and Crafts NOT INCLUDED IN ANALYSIS
small and family-run instead of large family-owned

corporations.69 In Lebanon, nearly half of the registered Source: Ministry of Economy and Trade (2014): Lebanon SME
companies have a sole proprietorship. Only 12.4 per cent Strategy. A Roadmap to 2020.
of registered companies are limited liability companies as
shown in Figure 10. A close look at the Lebanese economy shows that the
service sector, in particular, banking, finance, construction,
trade and tourism, plays a key role in terms of turnover.
The relative weight of the banking sector is exceptional in
comparison to other MENA countries.
Nevertheless, small and medium sized business are

not active in sectors like banking: Some 56.8 per cent
of Lebanese MSMEs are active in the wholesale, retail
trade and repair sector, and most of these businesses are
micro-enterprises. The second-largest activity by turnover
for MSMEs is real estate as shown in Figure 11.
Figure 11:Total SME turnover, by activity, as a percentage
1.7% 1.6%
2.3%
3.7%
3.9%
4.8%
11.0%
56.8%
14.1%
Others Community, social and personal service activities

Financial intermediation Hotel and restaurants
Transport, Storage and Communication Construction
Manufacturing Real Estate, renting and business activities
Wholesale, retail, trade
Source: Ministry of Economy and Trade (2014): Lebanon SME Strategy. A Roadmap to 2020.
commercial banks dominate MSMEs’ funding landscape,

CHALLENGES MSME loans account for only 16 per cent of banks’ loan
portfolios. The SME strategy identifies ‘a limited financial
Lebanon’s private sector faces several challenges, transparency coupled with weak credit coverage and
particularly given the difficult framework conditions creditor rights’ as the key financing constraints and calls
described in Chapter 2. for improvements in ‘SME management skills and high
collateral requirements’.
Lebanese companies are generally small and face specific
challenges in scaling up their growth and developing Overcoming at least some of these challenges entails
higher added value products.70 The closed, family-centred establishing an efficient business support structure
approach to owning and managing businesses that is for SMEs. However, Lebanon faces a structural deficit
commonly found in Lebanon can be contra-productive to regarding meso-level actors. Although Lebanon does
growth. This approach has deep socio-cultural roots and feature some highly specialised private consultancies
often results in many small businesses operating without with the capacity to deliver such services, there is a lack
corporate governance and professional management of affordable public-private support offers for smaller
structures.71 SMEs in Lebanon rarely rely on external companies in particular.73
management support.
The wholesale and real estate sectors, both of which play
Several policy advisory and strategy papers by global a key role in the economy, have low potential in terms of
institutions such as the World Bank, ILO, and OECD cite scaling-up and employment generation. In order to create
MSME financing in particular as an obstacle to growth. more jobs, Lebanon’s private sector needs to diversify,
Despite the country’s well-developed banking system, increase its volume of higher value-added products, and
there are few financing measures and schemes.72 This focus on scalable sectors and business models.
‘missing middle’ in financing, combined with the fact that
many MSMEs lack financial readiness, means they are
often subject to financial stress. According to the SME
Strategy, ‘there is a clear mismatch in target, type and
quantity of capital supply and demand for MSME’. While
47
pharmaceuticals, printing, jewellery, furniture production,
OPPORTUNITIES plastics, packaging as well as in knowledge-based industries
GROWTH SECTORS and ICT.75
Among MSMEs manufacturing, construction and tourism Sharing this view, ALI identifies agro-food – with an 11 per
are considered potential drivers for additional job creation cent growth in production and export over the last five years
(for agro-food processing, tourism and construction, see – as Lebanon’s fastest-growing sector with strong prospects
Chapter 7). The manufacturing sector is concentrated on for continued growth. According to the Chamber of Industry,
industries such as food and beverages, which make up 31 Commerce and Agriculture Beirut (CCIB), the industry
per cent of the total manufacturing value (current prices), services, agro-food processing, fashion design and software
electrical machinery and apparatus (29 per cent), and non- industry are the most productive and promising sectors in
metallic mineral products (13 per cent). The scale of industry terms of creating employment opportunities. Both ALI and
is small. Over 75 per cent of manufacturing enterprises the CCIB point out that investments in productive sectors will
employ less than 19 workers, and only 3 per cent employ create more employment than investment in other sectors.
more than 100 workers.74 CCIB estimates that an investment of USD 20,000 per job is
needed in industry, tourism or agro-food, whereas the USD
According to UNIDO, there is potential for high value-added 50 billion investment in bank and insurances created a staff
production in the manufacturing sub-sectors of agro-food, of only 26,000 which equals about USD 2 million per job.
Other strengths include the existing value chain breadth,
BUSINESS SOPHISTICATION existing cluster development (i.e., the geographic
concentration of firms, suppliers and producers of related
The Global Competitiveness Index indicator of ‘business products), innovation capacity, the extent of marketing (i.e.,
sophistication’ underscores the relative strength of how successfully companies distinguish their products and
Lebanon’s private sector despite the country’s weak macro- services) and the competitive advantages of Lebanese
economic framework Figure 12 shows for example, local companies in international markets (see the chapter on
supplier quantity (particularly in agro-foods), although the Employment in international trade).
quality of suppliers shows a need for improvement.
Figure 12: Indicator Business Sophistication, Global Competitiveness Index
No. Index component Rank/137 Value Trend
11th pillar: Business sophistication 52 4.2
11.01 Local supplier quantity 27 4.9
11.02 Local supplier quality 62 4.4
11.03 State of cluster development 61 3.8
11.04 Nature of competitive advantage 42 4.1
11.05 Value chain breadth 43 4.2
11.06 Control of international distribution 42 4.1
11.07 Production process sophistication 55 4.0
11.08 Extent of marketing 31 4.9
11.09 Willinggness to delegate authority 99 3.9
12th pillar: Innovation 58 3.4
12.01 Capacity for innovation 41 4.5
12.02 Quality of scientific research institutiona 81 3.6
12.03 Company spending on R&D 75 3.2
12.04 University-industry collaboration in R&D 48 3.6
12.05 Gov’t procurement of advanced technology

114 2.8
products
12.06 Availability of scientists and engineers 15 5.0
12.07 PCT patents applicatios/million pop. 59 2.4
Source: World Economic Forum (2018): The Global Competitiveness

Index 2017–2018
49
zones that are combined virtual knowledge clusters, the
VALUE CHAIN DEVELOPMENT proposed flagship project ‘Smart Lebanon’ includes the
sub-sectors technology and digital, business services and
According to several private sector actors and donors, value
outsourcing, creative industries, financial services and
chain development is important to understand growth and
education.78
employment generation. Value chain development aims
to improve the competitiveness and value of local as well
as for-export SME products and services by increasing the COMPETITIVENESS
quality and quantity of products and companies involved
in the production chain. The vision 2025 of the Ministry of To improve competitiveness, establishing cost-efficient
Industry supported by UNIDO focusses on value chains, by production and a quality infrastructure system (e.g., food
improving the ‘imbalance between small scale, low value- quality standards) are two areas in need of attention.
added industries and large-scale enterprises.’ Strengthening In Lebanon, much more can be done to communicate
value chains is also one of the major approaches of USAID the means of resource efficiency and cleaner production
in Lebanon. knowledge, thereby reducing resource waste and improving
For North Lebanon, the World Bank has identified competitiveness. Manufacturing companies can reduce their
agriculture and recycling as industries with potential for costs by adopting energy-efficient production processes
increasing permanent employment. With the introduction and taking part in renewable energy initiatives. In turn,
of a comprehensive regional programme for recycling, such activities create new jobs in green economy sectors.
the analysis concluded that 5,000 jobs could be created Resource efficiency is therefore one pillar in the Ministry of
by 2025 (base value: 500). The same is projected for the Industry’s Vision 2025.79
agri-business sector, where a value chain approach could Improving the country’s quality infrastructure system by
potentially create 10,000 to 20,000 permanent jobs in North establishing institutions for standardisation and accreditation
Lebanon. 76 or testing and certification procedures is another area to
emphasise. A quality infrastructure system plays a key role
CLUSTER DEVELOPMENT in boosting trade within a sector by strengthening consumer
protection and international trust in a country’s products and
A strategic emphasis on cluster development in Lebanon services.
would help tackle the country’s weak support structure for
business. Clusters that offer marketing and business support DEVELOPMENT OF INDUSTRIAL ZONES
to companies and institutions in their field are of particular
interest. Although Lebanon has a few clusters (e.g., Beirut Several initiatives and support programmes are planned
Creative Cluster, Lebanon SoftShore Cluster), and UNIDO to boost investments in labour-intensive sectors such as
and the EU support cluster development (e.g, wood manufacturing (e.g., Alkaa, Baalbek, Terbol industrial parks
processing in North Lebanon),77 much of this is a recent and the Tripoli Special Economic Zone (see chapter on
phenomenon. The greatest potential for cluster development Instrastructure conditions) Other opportunities for growth
lies in the agro-food, information and communication and employment creation can be realised by boosting trade
technology (ICT), creative industries, medical tourism and activities e.g. through reducing technical barriers to trade,
tourism sectors. Mc Kinsey identified the cluster approach improving access to finance for SME and improving SME
as having the potential to trigger enhanced competitiveness management capacities.
and innovation. Anchored in two physical clusters in industrial
EMPLOYMENT WITH
ENTREPRENEURS
Lebanon is among the world’s leading entrepreneurial OPPORTUNITIES
economies and is recognised as forming ground of
entrepreneurs in the region. According to the Global Experts surveyed as part of the GEM cite Lebanon’s ‘open
Entrepreneurship Monitor (GEM) 2017, in terms of and supportive culture’ the country’s major positive factor.
entrepreneurial activity, Lebanon ranked first both among The Lebanese start-up ecosystem has undergone rapid
eight MENA countries and 17 countries in Asia/Oceania. development in recent years and Beirut is fast becoming
In addition, the GEM 2017 showed three-quarters of adults one of the Middle East’s tech hubs. In August 2014, the
in Lebanon self-reporting as having the capability to start Banque du Liban (BDL) introduced the Circular 331 support
and run a new business – the highest level of the 54 programme. Its main objective is to encourage banks to
participating countries. Nearly one in four adults in Lebanon invest in start-ups, incubators and accelerators with a 75
stated in the survey that they were either planning to start or per cent investment guarantee. The 400-million-dollar
run a new business in 2017. While men in Lebanon continue programme has delivered a boost to the Lebanese start-
to be more likely than women to start or run a new business, up scene and led to a rise in the number of start-ups,
the country shows by far the highest level of female-driven accelerators and venture capital firms. In 2017, according
start-ups among the eight GEM-participating countries in the to Arabnet’s Business Intelligence Investment Report, 58
MENA region, which is almost twice that of the next highest tech start-ups were established with a total funding value of
level. More than half of those starting or running a new USD 53 million, which is more than six times the number of
business in Lebanon in 2017 were under 35 years of age. companies observed in 2013, when 11 start-ups received a
total of USD 7 million.81
38%
LEBANON, THE SECOND-HIGHEST
BEIRUT
ONE OF THE MIDDLE EAST
ENTREPRENEURIAL ACTIVITY TECH HUBS
In comparison to 2015, the levels of early-stage In order to support so-called necessity entrepreneurs, that is,
entrepreneurship in Lebanon have generally increased for entrepreneurs who start a business out of economic need,
lower household income levels and decreased for higher many ministries and donors launched support programmes
household income levels. in 2017 and 2018. These include the 14 KfW-financed
However, Lebanon also had the second-highest share ‘GIL Centres’ (Generation of Innovation Leaders) that
of total early-stage entrepreneurial activity described as are run by UNICEF across Lebanon, providing support to
motivated by necessity (38 per cent), behind Egypt (43 entrepreneurs with vulnerable backgrounds who are starting
per cent). Nevertheless, 61.4 per cent of total early-stage a business. Another programme within the framework of
entrepreneurial activity is opportunity-driven. the Ministry of Social Affairs (MoSA)’s National Property
Targeting Program (NPTP) supports 600 families in North
CHALLENGES Lebanon and the Bekaa Valley to start micro-businesses
with skills training and technical support as well as a small
grant of USD 3,000-7,000.
A negative aspect regarding employment creation potential
is that more than half of Lebanon’s early-stage entrepreneurs
The Business Innovation Centre Berytech notes that thus
expect to employ only themselves in five years’ time and
far, funds and programmes have focused primarily on
less than 5 per cent expect to employ six people or more.
end beneficiaries (entrepreneurs). Berytech recommend
Thus, in terms of job-creation expectations, Lebanon ranks
a stronger focus on ecosystem players and support for
50th out of 54 countries. One of the reasons is that 60
the exchange of knowledge between Lebanese and, for
per cent of early-stage entrepreneurs in Lebanon were in
example, German providers of support. Berytech also
the wholesale/retail sector, a sector with low job-creation
recommends that ‘early-stage smart grants’ (grants plus
potential. On the other hand, more than 50 per cent declared
support programme / incubator / accelerator) be introduced
to be offering new goods or services or services that have
and cites the positive experience of the iSMEs grant
only few competitors.80
programme, which ended in 2018.
One of the major constraints to entrepreneurship
development is the lack of efficient government support. In
USAID sees considerable potential in increasing support
the 2017 GEM national expert survey, Lebanon ranked 53rd
for business angels as a means of channelling private
out of 54 countries in terms of ‘government policy support
investments into start-ups. It therefore promotes expanding
and relevance’, ‘government entrepreneurship programmes’
angel investor networks, including those that focus on
and ‘physical infrastructure’. The only framework condition
women and diaspora communities in particular.
that improved significantly relative previous surveys is
‘entrepreneurship education’.
51
EMPLOYMENT IN
INTERNATIONAL TRADE
While Lebanon has an open economy in which trade CHALLENGES
accounts for about 40 per cent of GDP, it has a large trade
deficit that reached USD 16 billion in 2017. Exports account The region’s political instability is a constraint for export
for only 11.2 per cent of GDP, around half the regional development. The disruption of traditional land routes
average.82 through Syria as a result of the war has diminished export
volumes via Syria to other Arab countries.
Lebanon’s industrial exports are diversified both structurally
and geographically. In 2017, the following products were Economic research institutes broadly agree that Lebanese
exported: exports lie far below their potential. Export readiness is one
factor that accounts for this. The World Bank concludes
• Machinery and mechanical appliances, totalling USD that ‘a salient factor behind Lebanon’s weak export
485.1 million (19.6 per cent of aggregate industrial competitiveness in Europe is the lack of quality standards.
. exports)
• Prepared foodstuffs and tobacco, USD 471.4 million The majority of Lebanese firms do not have the capacity or
(19.1 per cent) means to meet the quality standards that would be required to
enter into the EU and other high-value markets’.84 According
• Chemical products, USD 396.7 million (16 per cent)
to the World Bank Enterprise Survey 2013/14, only 13 per
• Base metals, USD 341.3 million (13.8 per cent)
cent of Lebanon companies seem to have an internationally
• Plastics and rubber, USD 156.8 million (6.3 per cent)
recognised quality certification.85
• Paper and paperboard, USD 142.2 million (5.8 per cent)
• Pearls and precious or semi-precious stones and metals,
The World Bank also cites the high share of FDI arriving in
USD 141 million USD (5.7 per cent)
non-tradable activities as an obstacle to export development
as shown in Figure 13. Most investment is in markets and
Arab countries are the main trading partner for Lebanese
not in the development of competitive (global) value chains,
exports (56 per cent of Lebanese industrial exports in
that is, so-called ‘efficiency-seeking’ investments.86 Export-
2017), followed by Europe (14.1 per cent), Asia (12.2 per
oriented Lebanese companies’ low level of competitiveness
cent), Africa (11 per cent), the Americas (5 per cent) and
is associated primarily with the lack of national as well as
markets in Oceania (0.6 per cent). Saudi Arabia was the
international investment.
main country of destination for Lebanese industrial exports
(10.2 per cent), followed by the UAE (10 per cent), Iraq (8.8
per cent), Syria (8.4 per cent), Turkey (4.8 per cent) and
Qatar (3.7 per cent).83
Figure 13: Shares of tradable vs. non-tradable activities of FDI flows
FDI in tradable vs Nontradable
Share of Nontradable Share of Tradable

Source: World Bank (2017): Jobs for North Lebanon.
According to the Association of Lebanese Industrialists, one Interviewed companies also cited problems with customs
key obstacle to achieving a higher export share is the lack corruption and shipping infrastructure and rates. World Bank
of efficient export promotion. The Lebanese state does not representatives advocate in this context for an improved
offer any financial support for companies to participate in framework for facilitating trade.
trade fairs by providing, for example, a national pavilion at
the world’s leading Allgemeine Nahrungs- und Genussmittel- Many experts consider the country’s monetary stability to be
Ausstellung (ANUGA) food trade fair in Cologne, Germany a key factor in Lebanon’s economic attractiveness. However,
or by engaging in product branding for the country. the dollar peg can influence the price competitiveness of
exports, particularly when targeting non-dollar countries.87
In Lebanon, sectors with a revealed comparative advantage

OPPORTUNITIES (RCA) show a particularly strong potential for export growth.
The RCA is an index used in international economics for
Given its direct access to the Mediterranean Sea and its calculating the relative advantage or disadvantage of a
proximity to larger markets such as the EU, Turkey and certain country in a certain class of goods or services as
Egypt, Lebanon is geographically well-positioned for the evidenced by trade flows. The RCA index indicates the
export of its products. Furthermore, its widespread diaspora sectors in which Lebanon’s share of exports exceeds the
population could be tapped as an efficient support structure global export share of the same sector. These are the areas
for export activities. in which Lebanon has a comparative advantage. Sectors in
Lebanon with the strongest RCA include food processing,
stone/glass and wood processing as shown in Figure 14.88
Figure 14: Lebanon’s export share and comparative advantage
RCA 2014 % Exports 2014 (Right)

Source: World Bank (2017): Jobs for North Lebanon, calculation based on UN Comtrade statistics
According to the ALIs, Lebanon exports 337 ‘highly International trade could be a key vehicle for raising
competitive’ products. ALI sees Lebanon’s main export productivity and creating export-oriented, high-value jobs in
potential in the ICT sector, in pharmaceuticals and agro- Lebanon. In several MENA countries, firms that export 10
food processing, including wine, chocolate and olive oil in per cent or more of their output provide the majority of jobs in
particular. ALI identifies exports as the primary driver behind the respective country. This is true for Lebanon, where such
job creation in Lebanon. firms account for 58 per cent per cent of jobs.89 Facilitating
export readiness and export promotion programmes could
therefore help generate further employment.
53
EMPLOYMENT IN THE low due to owners’ lack of managerial skills and their lack
of access to the formal banking sector and growth capital.
INFORMAL SECTOR Given their general lack of access to proper documentation

and licences, these entrepreneurs also do not have access
to foreign markets or public tendering processes.
The World Bank concludes that unemployment, informality
According to the World Bank, companies with less than four and poverty are strongly correlated in Lebanon.93 Most
employees dominate the informal sector and represent over informal businesses are not willing to formalise as they do
91 per cent of all firms in Lebanon. The majority of informal not see a benefit. Indeed, the barriers associated with time
companies are managed by Lebanese (about 87 per cent), investments, higher fees and taxes were cited in the 2014
followed by Syrians (8 per cent) and Palestinians (4 per Lebanese Enterprise survey on the informal sector.
cent).90 The National Statistical Institute CAS sees almost
total informality in agriculture (over 90 per cent), followed
by construction and transport (nearly 80 per cent and 70 OPPORTUNITIES
per cent respectively) and commerce (58 per cent). Private
services and manufacturing show below-average rates For informal entrepreneurs, the main benefits of formalisation
of informality (22 per cent and 38 per cent respectively). are seen in improving their access to finance (39 per cent of
Finance and insurance are entirely within the formal sector.91 firms cited this as an incentive), the ability to issue receipts
and attract customers (13.8 per cent) and better access
Informal employment is high, even within registered to raw materials and government services (12.8 per cent).
companies. Individuals interviewed for this report state that Smaller firms cite access to finance as the main motivation
companies either do not register all employees, do not pay to formalise, whereas larger firms cite the opportunity to
minimum wage or do not provide health coverage. Because expand their client base. Both cases imply the capacity to
labour laws are not properly enforced through frequent create employment by enabling informal firms to scale-up.
and thorough inspections, they are not strictly followed. Efforts designed to support companies in formalising include
The informal sector has expanded in recent years as many legislation currently in preparation that will incentivise micro
Syrians have entered the labour market informally.92 and small businesses to formalise. In addition, there is a
growing trend to form co-operatives that would formalise, for
example, small food processing companies’ capacity to offer
CHALLENGES social benefits through mutual funds.
Most informal companies are small and managed by The World Bank notes that programmes targeting
owners with a relatively low educational background. These formalisation would have greater impact if they were to be
entrepreneurs are generally not equipped with considerable combined with interventions designed to improve access to
management or technical capacities. finance, reduce taxes and simplify tax procedures for small
firms. 94
The scaling-up potential of these informal companies is
sector, 40,000 in the education sector, 25,000 in ministries
EMPLOYMENT IN THE and public administration, 15,000 in public institutions and
municipalities and 70,000 as retirees.
PUBLIC SECTOR The Lebanese public sector accounts for only about 15
per cent of total employment.96 This stands out in contrast
to other countries in the Middle East in which public sector
The public sector employs about 300,000 people, the employment predominates.97 Due to the existing budget
majority of whom work in the military sector.95 constraints, it is unlikely that the public sector will contribute
to substantial employment creation.
The distribution is as follows: 120,000 in the military/security

Table 5: Challenges and opportunities on the demand side of the labour market
Private sector and SMEs
• 56.8 per cent of Lebanese SMEs are active in the

wholesale, retail trade and repair sectors, most of • SMEs and entrepreneurship are the drivers of Leba-
them are micro-enterprises. The second largest non’s private sector
sector is real estate. Both sectors have low scal-
• The fastest-growing sector in Lebanon is agro-food
ing-up and job-creation potential
with an 11 per cent growth in production and export in
• Lack of corporate governance and professional the past five years
management structures (family-centred SMEs) • In the SME category, manufacturing, construction and
tourism are considered potential drivers for additional
• The gap in SME financing is an obstacle to growth, job creation
as are limited financial transparency, weak credit
coverage and creditor rights; improvements need- • Promising approaches for the industrial SME sector
include enhancing food safety standards, value chain
ed in SME management skills and high collateral
development, cluster development, developing indus-
requirements trial zones and a gradual shift to higher added value
production.
• Lack of affordable public-private support offers for
smaller companies in particular
Entrepreneurship
• Lebanon among the world’s leading entrepreneurial

economies and known as an entrepreneur hub in the
region
• High rate of necessity entrepreneurs • High entrepreneurial spirit
• The Lebanese start-up ecosystem is developing fast,

• More than half of Lebanon’s early-stage entrepre-
and Beirut is becoming a tech hub in the Middle East
neurs expected to employ only themselves in five
years’ time, less than 5 per cent expect to employ • In 2017, 58 tech start-ups were established with a
six people or more total funding value of USD 53 million
• USAID sees considerable potential in supporting

business angels to channel private investments to
start-ups
55
Export and trade
• Disruption of traditional land export routes due to

the Syrian crisis led to a decline in export volumes
via Syria to other Arab countries • Lebanon is geographically well positioned, with
access to the Mediterranean and proximity to larger
• A large trade deficit in which exports account for markets (EU, Turkey and Egypt)
only 11.2 per cent of GDP, around half the regional
average • Has an open economy with a trade rate that accounts
for about 40 per cent of GDP
• Most Lebanese firms do not have the capacity or
means to meet the quality standards that would be • Large infrastructure investments in sea ports and
required to enter into the EU and other high-value special economic zones (e.g., in Tripoli) can attract
markets (lack international certification in particular) new investment in exporting companies
• Weak national supply chains • Lebanon exports 337 ‘highly competitive’ products;
sectors with the strongest revealed competitive
• Main obstacle to leveraging a trade-related compar- advantage are vegetables, food processing and wood
ative advantage in Lebanon is the high share of FDI processing
coming in non-tradable activities
• Dollar peg can affect price competitiveness
Informal sector
• High rate of informality

• Informal entrepreneurs see the main benefits of
formalisation in improving access to finance (39 per
• The scaling-up potential of informal companies is
cent of firms), the ability to issue receipts and attract
very low, most companies have no access to growth
customers (13.8 per cent) and better access to raw
financing
materials and government services (12.8 per cent)
• Most informal businesses are not willing to formal-
• Government plans a law with formalisation incentives
ise as they do not see a benefit
Public sector
• The public sector plays a minor role in Lebanese

job creation. An estimated 300,000 people are em-
ployed in the public sector, the majority in the mili-
tary sector
• On average, 90 per cent of newly created jobs are in
the private sector
• Due to the existing budget constraints it is unlikely
that the public sector will contribute substantially to
employment creation
57
THE LABOUR
SUPPLY SIDE:
THE QUALITATIVE
DIMENSION OF
LABOUR FORCE
DEVELOPMENT
59
THE LABOUR SUPPLY SIDE:
THE QUALITATIVE DIMENSION
OF LABOUR FORCE DEVELOPMENT
What qualifications are available within Lebanon’s workforce? How are workers trained, and how well are they
prepared to enter the job market? How does migration influence the quality of the workforce? How do Lebanese
perceive certain jobs and participation by women in the labour market?
This chapter gives an overview of the actors involved in education and training, the higher-education system, the
vocational-training system, the level of qualification and skills within the workforce, labour-migration patterns, the
cultural perception of specific jobs and types of work, and the perception of women’s participation in the labour
market.
ACTORS
There is a multitude of actors working on the supply side of the labour market. The key actors are the ministries responsible for
labour, education and vocational training, as well as a variety of donor organisations that support the Lebanese government
in improving this sector. In addition, numerous NGOs provide short-term training and support for entrepreneurs, and both
vocational-training centres and academic institutions provide skills training.
MINISTRIES AND PUBLIC INSTITUTIONS

In the field of labour supply in Lebanon, the following public actors were identified.
The Ministry of Labour (MoL) is the key actor on the policy level. It governs the labour
Ministry of Labour market, regulates labour relations and enforces labour law. It also has political and
(MoL) budgetary ties to the National Employment Office (NEO; for more details see chapter
on actors in matching demand and supply), the National Centre for Technical Train-
ing and the National Social Security Fund (NSSF; for more details see Chapter on
social protection policies).98
The Higher Council for TVET is a body made of representatives of MEHE, MoL, NEO,
ALIs and the General Confederation of Lebanese Workers (CGTL). It was revived in
October 2018 to implement the new TVET strategy. The Council will be tasked with
revising the list of TVET-supported professions to make them relevant to current labour
Higher Council for TVET
demand, developing new curricula, training staff on understanding what constitutes
high-quality TVET and providing scholarships to TVET students. This Council includes
representatives from the private sector, which may help make vocational training more
relevant for companies.
The Ministry of Education and Higher Education (MEHE) is the main authority
governing the education system. The Directorate General of Vocational and
Technical Education (DGVTE) supervises the vocational training and education
Ministry of Education and system, has strong ties with private VTE providers that must seek accreditation, and
Higher Education is responsible for creating curricula and training programmes for public vocational-
(MEHE) training centres. The DGVTE has successfully implemented the GIZ Dual System,
Meister, Small and Medium Enterprise (DSME) development programme, which is
still ongoing even after GIZ’s withdrawal in 2014.99 The DGVTE manages the public
provision of TVET in 158 public training institutes and supervises the performance of
251 private educational institutes and training providers.100
The Ministry of Social Affairs (MoSA) plays a leading role in improving the livelihood
of local communities. Since the Syrian crisis, donors and the Lebanon Host
Ministry of Social Affairs Communities Support Programme (LHSP) have partnered with MoSA to implement
(MoSA) coordinated and durable responses, aimed at increasing the stability and economic
welfare of host communities. The MoSA also acts on the labour supply side, providing
short-term vocational training in partnership with local NGOs and providers.101
According to the Ministry of Industry’s (MoI) strategic plan (2016-2020), the body
aims to improve awareness and the technical capacity of local labour supply to match
the needs of local industries. This will be done by improving linkages and coordina-
tion between the private sector and educational institutions, including higher-edu-
cation and vocational-training entities. The MoI has also signed a memorandum of
understanding with MEHE and the Association of Lebanese Industrialists with the
goal of modifying and improving curricula, training and education programmes to
match local industrial needs. Direct interventions include the creation of incentives
for internships (for students) in industries, and the LIRA programme, which has the
following objectives:
1. Encourage university-industry co-operation towards

Ministry of Industry building a knowledge-based economy.
(MoI)
2. Match university activities/research with industry needs/problems (towards in-
creasing productivity).
3. Seek industrial sponsorship for proposed university projects (encouraging re-

searchers).
4. Offer a national platform for potential new products and services (supporting uni-
versity-based research labs).
5. Help engineering and science students in developing their research and project
output into industrial-quality prototypes at minimum cost (reducing brain drain).
6. Provide industrial training, especially on new technologies and mould manufactur-

ing, to fresh graduates and engineers (creating job opportunities).
61
DONOR AND UN ORGANISATIONS
Following the Syrian refugee crisis, many donor organisations have reactivated or intensified their activities in Lebanon.
They are acting to influence the labour market, with some focusing on the demand side and others on the supply and
intermediation side, by providing strategic and technical advice as well as funding. Donors are providing support to host
communities and to the Syrian displaced. Some examples of donor organisations and their key projects are listed below:
The ILO conducts a variety of national and regional pro-

grammes to support employability, vocational training and
decent work. A joint ILO/UNICEF project called Towards
Improved Formal and Non-Formal Technical Vocational &
Education Training in Lebanon works to improve the avail-
ability and quality of labour-market information at the com-
International Labour Organisation munity and national levels, and additionally developed and
(ILO) initiated competency-based training programmes relevant to
labour-market demand (2017-2019).102 Another project called
Improved Access to Employment Opportunities for Lebanese
Host Communities and Syrian refugees in Lebanon aims at
upgrading the agricultural technical-education system in Leb-
anon, with the goal of improving access to employment op-
portunities and livelihoods in rural areas (2017-2018).103
UNDP is responsible for implementing the Lebanon Host

Communities Support Programme (LHSP), which is the re-
sponse by a donor coalition to the impact of the Syrian crisis in
Lebanon (Lebanon Stabilization and Recovery Programme).
Since 2013, working jointly with the Ministry of Social Affairs
United Nation Development Programme (MoSA), the LHSP has implemented a comprehensive, co-
(UNDP) ordinated and durable response to the impact of the Syrian
crisis with the aim of increasing stability, expanding host com-
munities’ capacities, addressing tensions, preventing conflict,
and ensuring peaceful coexistence through improving liveli-
hoods and service provision.104
UNHCR is responsible for registering refugees and providing

humanitarian support in areas such as nutrition, health,
United Nations High Commissioner for Refugees
shelter and water, sanitation and hygiene (WASH). It also
(UNHCR) coordinates donor activities in these sectors.
UNIDO is active in the field of vocational training in North

Lebanon. It helped rehabilitate the Vocational Training
United Nations Centre on Carpentry at the Zgharta Official Technical Institute
with the support of the Japanese government in 2017, and
Industrial Development Organisation
launched a job creation programme in 2018 which will design
(UNIDO) new training modules for construction-related skills training
and the delivery of marketable vocational-skills training to
vulnerable individuals.106
The World Bank is financing a USD 400 million programme

called the Creating Economic Opportunities in Support of
the Lebanon National Jobs Programme (2019-2023). The
project is expected to create 52,000 permanent jobs and
World Bank
12,000 short-term employment opportunities. The funding
includes USD 70 million in grants and USD 330 million in soft
loans. The project will be implemented in partnership with the
Ministry of Economy and Trade.107
UNICEF (together with ILO) has supported the development
United Nation of the new National Strategic Framework for Technical
Vocational Education and Training 2018–2022 strategy.
Children’s Fund
The UN Organisation is also involved in the implementation
(UNICEF) of training programmes such as the GIL Centres for young
entrepreneurs.
Since 2012, the German Federal Ministry for Economic

Cooperation and Development (BMZ) has provided EUR
German Federal Ministry for Economic Cooperation
825 million to support Lebanon.108 Among the programmes
and Development
supported or co-financed by the German government have
(BMZ)
been projects implemented by GIZ and KfW, as well as
iNGOs (e.g. LEADERS programme).
GIZ is a German implementing agency focused on technical

co-operation. Commissioned by BMZ and EU, GIZ implements
several projects in Lebanon that contain capacity-building
and skills-training components. These include the Qudra
Programme, which rehabilitates school infrastructure and
Deutsche Gesellschaft für Internationale conducts short-term vocational-training programmes (among
Zusammenarbeit other tasks); ProVTE, which seeks to improve the formal
(GIZ) vocational-training system; UDP-NL, which provides support
for entrepreneurs, MSMEs and vulnerable youth and women
with regard to income creation, infrastructure development
and improvements in social stability; and ConTra, which
rehabilitates and builds small-scale infrastructure, and
provides short-term trainings in the construction sector.
Working on behalf of the German government, KfW focuses

on financial co-operation and contributes to the provision of
nationwide education and job-market-oriented vocational
courses for young people in Lebanon.109 One of four TVET
Kreditanstalt für Wiederaufbau programmes financed by KfW is UNICEF’s GIL Centres, which
(KfW) provide digital and entrepreneurial education to vulnerable
youth. A second is the Employment Intensive Infrastructure
Programme, which finances labour-intensive investments
into infrastructure and has a training component for Syrian
refugees in the construction sector.
DFID has run a widely cited three-year programme called

INTAJ (2016-2018) designed to promote employment and
job creation. The programme (implemented by Mercy Corps)
Department for International Development created close links between short vocational-training courses
(DFID) and placement services, which led to comparatively high
placement rates. The current DFID programme to support
companies and livelihoods is called the Subsidised Temporary
Employment Programme (STEPS).
The European Union finances and co-finances a number of

projects implemented by development agencies such as GIZ
(International Services) or ILO. For example, the EU Trust
Fund enables the children of Syrian refugees in Jordan,
European Union Lebanon and Turkey to go to school and have access to safe
(EU) spaces for non-formal education, protection and psycho-
social care. Syrian students whose studies were disrupted
by the war have received scholarships to attend Jordanian,
Lebanese and Turkish universities. Through vocational
training and job fairs, Syrian refugees and host communities
are improving their chances on the employment market.110
63
These programmes entail training from NGOs such as the
PRIVATE SECTOR ASSOCIATIONS Safadi Foundation and the Makhzoumi Foundation. The
AND NGOS National Centre for Technical Training is also responsible
for certifying private training centres.114
The following private sector actors were identified as As a development agency affiliated with the chambers of
working within the labour-supply field in Lebanon. commerce, the Local Economic Development Agency
(LEDA) provides a platform for co-operation in North
Most of the large iNGOs working in the field of short- Lebanon that has good connections with local authorities
term non-formal vocational training, soft and life skills, in both North Lebanon and Akkar. The entity provides
and employability are active in Lebanon. For example, assessments of the labour market, short-term non-formal
a consortium made up of the Danish Refugee Council, vocational training services, and support for entrepreneurs.
Oxfam, ACTED, Care International and Save the Children
is implementing the LEADERS programme, aiming to Numerous local NGOs have training centres that provide
create job opportunities and local economic-development non-formal vocational training, literacy and numeracy
initiatives within Jordan and Lebanon. The programme links training, life and soft skills training, and/or entrepreneurship
job seekers with job opportunities through traineeships, training. Their portfolios usually encompass a variety
internships and job placements, among its many other of sectors such as agro-food, wood processing, car
interventions.111 Another example is the American NGO maintenance, mobile-phone repair, hairdressing and
Anera, which provides numeracy and literacy training along hospitality. Well-known examples of such organisations
with short-term vocational training, including placement. include the Lebanese Organisation of Studies and Training
The Digital Opportunity Trust (DOT) specialises in digital (LOST), the Makhzoumi Foundation, Mouvement Social,
literacy, whereas INJAZ is mainly active in entrepreneurship the René Moawad Foundation and The Safadi Foundation.
training.
Due to their frustration with the lack of suitable skills
The Institut européen de coopération et de and driven by the idea of giving back to society, some
développement (IECD) is a strong actor in the Lebanese companies have also started vocational training centres
VTE sphere. By offering accredited short-term courses and that they use to train their own staff and to train participants
organising job-matching activities, it acts both within the in donor-financed programmes. Their training programmes
areas of labour supply and labour matching. IECD also are regarded as being very practically focused and relevant,
offers formal TVET services, such as its BT in electrical and generally have high placement rates. Examples include
engineering and IT, and additionally runs guidance and Zmerly (based in Tripoli, in the renewable-energy sector),
employment offices (GEOs) at technical schools.112 Memo (based in Beirut, in the construction sector), Festo
Authorized and Certified Training Centre (located in Bsarma
The Chambers of Commerce, Industry and such as the – El Koura, mechatronics) and the El Yama Group (Saida,
one in Zahle, have experience in delivering training, including in the printing business).
vocational training. The chamber in Beirut and Mount
Lebanon provides short training programmes for middle Additionally, some job-matching providers also offer short
managers focusing on issues such as sales or leadership training programmes, particularly in the field of employability.
and including courses such as business English.113 Examples include the American University of Beirut (AUB)
Career and Placement Centre, which provides interview-
The National Centre for Technical Training is responsible skills training, or the HireLebanese internet portal, which
for TVET for school dropouts in Tripoli, Akkar and Beirut. offers CV advice for a small fee.
The gross enrolment ratio (GER)116 in tertiary education has

HIGHER EDUCATION decreased since 2011, when it reached its peak of 49.7 per
cent (see Table 6 below). This can be partially attributed to
the increase in the refugee population in the relevant age
Lebanon has a renowned education system with mostly group, a large portion of whom were not able to access
private universities providing a hiqh-quality education. The higher education, as well as the deteriorating economic
country’s residents also tend to be bilingual or trilingual. For conditions that have led youths to pursue earlier entry
Lebanese students, it is normal to be fluent in at least two into the labour market. For the years with available data,
languages (Arabic and French and/or English). the GER has consistently been higher for females than for
males.
This is also acknowledged in international rankings: In the
Global Competitiveness Report it ranked 18th worldwide for
the quality of its higher-education system.115
Table 6: Gross enrolment ratio, 2011-2017, all population
Tertiary
2011 2012 2013 2014 2015 2016 2017
Education
Total 49.74 45.61 46.02 42.86 38.55 38.2 38.14
Female 49.8 47.18 47.86 45.85 ... ... ...
Male 49.67 43.88 44.01 39.62 ... ... ...
Source: UNESCO, Institute of Statistics
This GER is considered to be relatively low compared Iran boasts a GER of 68.85 per cent, while Turkey’s is 103.75
with European countries such as Italy (68.85%), France per cent.117 Lebanon’s GER performance is also middling
(64.44 per cent) and Germany (68.33 per cent), and even compared to Arab countries.
compared to other middle-income countries. For example,
Figure 15: Gross enrolment ratio (per cent) in 2017 for selected Arab countries
47.72
45.5
38.14
33.76
32.06
31.71
16.42
Qatar Jordan Tunisia Morocco Lebanon Bahrain Algera

Source: UNESCO Institute of Statistics 118
Higher education in Lebanon is dominated by private In addition, a new law governing higher education was
education providers, with 47 private institutions, and passed in 2014, updating the previous law from 1960.
one public institution, the Lebanese University. For the However, the Lebanese University enjoys a clear condition
2016/2017 academic year, approximately 62 per cent of the of autonomy, with its own law and governance systems.
country’s total 200,807 students were enrolled in private The public Lebanese University is open to all nationals and
higher-education institutions. Almost 57 per cent of these foreigners who have legal residency. Fees are minimal for
students were female.119 Lebanese students, ranging between USD 130 and USD
163 per annum for undergraduate degrees. This subsidised
Most of the private universities were established in the late fee also applies to Palestinian and Syrian students. Fees
1990s, when there was a rapid expansion of the education for international students are higher (between USD 630 and
system after the end of the civil war. This rapid expansion USD 663 per annum).
is seen to have adversely impacted the country’s higher-
education system. Given this perception, the Directorate Participation rates for both Palestinians and Syrians remain
General for Higher Education was established in 2002 in low. In 2016, only 1,466 Syrian students were registered
order to license schools and validate degrees and disciplines at the Lebanese University (comprising less than 2 per
based on periodic audits. This was a response to rising cent of the student population). This is attributed to several
concerns that many of the new universities were operating factors including legal residency requirements, competitive
primarily as businesses rather than as institutions focused admission requirements and a lack of support in learning
on providing a high-quality education and graduating competencies.120
employable students.
65
Admission at the Lebanese University, especially for possibilities of a return on the investment entailed in enrolling
highly desired specialties including engineering, business their youth in private education. Lacking sufficient information
administration, medicine, ICT and media, is very competitive. on labour-market demands, households most often opt
In addition, while the Lebanese University does have branch for relatively traditional and socially approved disciplines,
campuses all over the country, most of the faculties for these especially for males. This creates an overabundance of
disciplines are concentrated in the centre (Beirut and Mount graduates in a comparatively small number of skills areas.
Lebanon). This leads many prospective students to apply to
the many commercial universities.121 Higher education in Lebanon remains poorly connected
with its surrounding environment due to the lack of any
Private tuition can range between USD 5,000 and USD comprehensive policy linking education with the needs
26,400 per year, depending on the university and the choice of the market. Many students graduate with degrees that
of specialisation. Thanks to the number of students enrolled are not in demand, inflating youth-unemployment rates.
in private education, household spending on education Institutions and policies need to be well informed of labour-
far exceeds government spending.122 It stands to reason market expectations in order to adopt necessary curricula
that individual households have to carefully consider the and respond to new employment patterns.
VOCATIONAL EDUCATION
In 2017, approximately 27.7 per cent of the students (21.97 per cent of females and 33.65 per cent of males) enrolled
in secondary education opted for the vocational track.123 While this is considered to be a low rate compared with OECD
countries such as Germany (46.27 per cent), Italy (55.61 per cent), France (40.64 per cent) and Turkey (47.5 per cent), it
ranks among the highest in the Arab region.
Figure 16: Enrolment in TVET as percentage of total enrolment in secondary education, 2017, selected Arab
countries
46.53%
27.70%
14.56%
13.98%
13.73%
9.61%
1.46%
Egypt Lebanon Morocco Jordan Bahrain Tunisia Qatar

Source: UNESCO UIS, http://uis.unesco.org/
For the 2016/2017 academic year, a total of 85,224 students A National Strategic Framework for TVET was launched in
(57 per cent public and 43 per cent private) were enrolled 2018, with the goal of identifying and addressing internal
in vocational or technical education. The majority of these and external challenges faced by the sector, and of providing
students were enrolled in private or public vocational or solutions to them.126
technical institutes in the areas of Mount Lebanon and the
North (25.44 per cent and 24.7 per cent respectively). Only Internally, the TVET sector lacks institutional coordination
1.82 per cent of these students, all of whom were registered mechanisms that could help to define priorities, harmonise
in private schools, were enrolled in Beirut. The largest share practices and assist actors in learning from common shared
of TVET students (57.64%) were enrolled in programmes experiences. Public TVET institutions have a shortage of
leading to the Baccalaureate Technique (BT) certificate, qualified and competent teachers, staff and supervisors,
followed by 19.44 per cent enrolled in programmes aiming and there are considerable inefficiencies in the way budgets
at the Technicien Supérieur (TS) certificate. Only 1.58 per are allocated. The 158 existing public institutions often run
cent were enrolled in the Dual System, and less 0.02 per classes with very few students paying exorbitant fees, led
cent were in the Meister programme124.125 by contracted and often unqualified instructors. According
to the DGVTE, the operational budget for material costs
A majority of the students enrolled in vocational education for all these public institutions in 2018 was USD 600,000.
were males (57 per cent) while 43 per cent were female. Considering the course requirements for equipment and
This is regarded as being due to the high concentration materials needed to engage in practical training, trainees’
of traditionally male-oriented specialisations; indeed, 23 ability to acquire practical competences is extremely limited.
programmes showed no enrolment by females at all in the
2016/2017 academic year, while only one specialisation, in There has also been limited involvement from the private
the area of social work, showed an entirely female student sector in the assessment, formulation of occupational and
enrolment. The highest concentration of students among qualification standards and provision of on-the-job training.
males and females alike was found in specialisations Such programmes would help refresh outdated curricula
considered to be white collar, including accounting, interior and ensure that training is relevant to actual labour-market
design, and information and communication technology. needs. The share of formal TVET programmes that dedicate
According to interviews with the Directorate General for a substantial share of time to on-the-job training, as in the
Vocational and Technical Education (DGVTE), this is Dual System, remains sparse. In addition, and with few
problematic, as these graduates have to compete in the exceptions, career guidance in the public schools is quite
labour market with more qualified higher-education alumni. limited. Currently this is available in only five out of the 158
On the other hand, graduates in industrial specialties such public schools.
as plumbing, mechanics, construction and air-conditioning
(AC) repair often find jobs more easily, and are remunerated A recent trend is the increase in non-formal vocational
more highly when they engage in self-employment. However, training. The Syrian refugee crisis and the difficult economic
only one-quarter of students all of whom are male register environment have in combination led to the creation of an
within these fields. increased number of basic, short, non-formal vocational-
training programmes. Donors and NGOs – indeed, too
While there have been some attempts to encourage Syrian many in the view of several interview partners – offer training
enrolment in public institutions, these have been restricted programmes lasting a maximum of three to six months to
to short-term training courses. However, enrolment rates youth and women, often without conducting pre-tests, follow-
remain low even here; according to an interview with MEHE, up support or tracer studies. Such programmes are often
around 1,700 Syrians are enrolled in the public TVET system, designed to train large numbers of beneficiaries, without
making up 3.5 per cent of the total student population. As considering the quality of the training or comprehensive
Syrians are legally limited to work within just three sectors support measures. The results are often very limited, with
in Lebanon agriculture, construction and environmental a small percentage of participants finding job placements.
services the value of enrolling in TVET courses is quite In interviews, organizers of such programmes reported that
limited. they believe between 10-15 percent of graduates find and
retain jobs. This adds to the growing levels of frustration
A number of other public entities manage and provide VTE, within the target groups. As one of the interview partners
including the MEHE, the Ministry of Agriculture, the Ministry noted: ‘There are just too many trainings and no jobs; youth
of Social Affairs, the Ministry of Labour, the National Centre are tired of participating in all these trainings without having
for Vocational Training and the National Employment Office. a perspective for the future.’ Or in the words of another
In addition, private and non-governmental organisations person: ‘All do the same thing at the same time with the same
provide a variety of training courses. The number of NGO beneficiaries.’127 It should be noted that some of the NGOs
initiatives offering short-term non-formal training has providing non-formal training have partnered with private
increased considerably as a response to the Syrian crisis. sector companies to develop practical training curricula.
However, there have been limited tracer studies assessing
the impact of these programmes on employability and
retention.
67
20 per cent of working men hold university degrees. The
LIFE AND SOFT SKILLS mismatch between the orientation and output of education
and training institutions and the demands of the labour
TRAINING market aggravates the country’s already poorly functioning
labour-market dynamics.
Many NGOs offer life and soft skills training in order to
improve competencies identified by employers as necessary According to a World Bank survey, 41 per cent of wage
for new entrants into the labour market. These trainings earners perform jobs that fall outside the scope of their
include CV writing and interview techniques as well as education and skills. Indeed, the survey found that education
English-language and basic computer skills. in its current form is an impediment to employment.133
As current trends appear to indicate that most graduates do At the same time, medium-level technical expertise (e.g.,
not end up working in a job related to their degree,128 career skilled workers, technical assistants) is scarce at all levels
guidance centres in private universities are concentrating on and in numerous occupations within the Lebanese labour
improving competencies such as problem-solving, analytical market. The negative value attributed to occupations that
and communication skills. However, their efforts will remain require vocational education or training are the major
limited in the absence of accurate and up-to-date information obstacles preventing Lebanese people from learning and
regarding labour-market trends. practising these professions. In reality, the income levels
associated with these jobs are currently higher than for most
Digital skills are considered to be an important asset enabling of the jobs sought by university degree holders.
workers to reach out to international markets and as an
option for freelance work, particularly for vulnerable or low- There are also other dimensions of quality regarding the
skilled youth. According to Digital Opportunity Trust (DOT) skills of young Lebanese that could be improved. A study by
Lebanon, an NGO experienced in providing such training, the Beyond Reform and Development (BRD)134 think tank
the main problem for the vulnerable is access to training finds that ‘there is an overall consensus between employers
rather than the level of education: ‘If they have access, they and students that more practical and on-the-job training is
can do it, even with a very poor educational background’, needed to increase job preparedness among graduates at
said one DOT Lebanon interview partner This statement various levels of educational attainment’. To react to this
was corroborated by other interview partners such as the need, some training providers have started to add short
founder of the software company Neumann, who said, ‘For internships and apprenticeships to their vocational-training
software programming, you don’t need university education – programmes.135 A few universities have research and
it’s outdated anyway – but self-skills, literacy and numeracy, development departments that collaborate with companies.
and motivation’. DOT staffers indicated that some of their Such co-operation is usually the outcome of company-
Syrian refugee beneficiaries entered hardly knowing what sponsored competitions with prize money. In our interviews,
a computer was, and at the end of the programme were companies expressed a desire for more interaction with
able to create logos, websites, apps, etc., and even found universities, both in terms of offering students short-term
customers for their freelance work.129 internships of three to four months136 and in collaborating
on research projects. Such efforts would benefit companies
QUALIFICATIONS WITHIN and students alike by allowing companies to get to know the
students and students the opportunity to gain valuable work
THE LABOUR FORCE experience.
There are significant gaps between the skills demanded

by employers and those held by employees. In the case of
managerial positions, the main gaps are related computer LABOUR MIGRATION AND
skills and basic technological skills, the ability to work
independently, and proficiency in a foreign language. For
non-managerial positions, the main gaps include the ability
LABOUR MOBILITY
to perform in a team, foreign-language skills, professional Lebanon has historically experienced both influxes and
communication skills, and problem-solving skills.130 exoduses of labour due to political, social and economic
factors. As described in the chapter on labour market trends
More broadly speaking, Lebanon’s labour market suffers on labour-market trends, the country is currently home to
from an overabundance of workers at the upper end 1 to 2 million Syrian refugees; about 174,400 Palestinian
(with 200,807 individuals enrolled in academic studies, refugees137, and about 22,000 refugees from other countries.
2016/2017) and a lack of qualified labour at the lower end In addition, the Ministry of Labour had issued 209,674
of the skills spectrum (85,224 enrolled in vocational or labour permits as of 2015 for foreign workers employed
technical education 2016/2017). The latest national labour- as domestic helpers or in the hospitality, construction or
market data indicates that 30 per cent of working people agriculture sectors. The actual number of foreign workers is
have no or only a basic education, while 43 per cent of supposed to be much higher, as many live in Lebanon with
employed people hold secondary or university degrees.131 unregistered status. On the other hand, between 10,000 and
With regard to skilled working persons in particular, 43 per 15,000 highly skilled Lebanese leave their country every
cent of working women hold university degrees,132 while just year (see overview below).138
46% 27%
reversing. It was reported that most students would prefer

SKILLED EMIGRATION job placement outside of Lebanon. This is due to several
factors, including the high youth-unemployment rate, low
Lebanon has a huge diaspora all over the world. In the
salary scales and the belief that working outside Lebanon
period 2013−2015, an estimated 885,000 Lebanese lived
will improve a person’s career path.
abroad.139 The General Directorate of Emigrants states that
there are 10 million Lebanese living abroad if one considers
Interview partners confirmed that the return rate is low, and
people of Lebanese descent.140
that this brain drain has led to a serious lack of experienced
middle managers. Companies interviewed for this study
The emigration of Lebanese is quite specific, as it is an
indicated that they used to receive 100 applications per offer
emigration of highly skilled young people. Almost 50 per
for a job requiring experience, while they typically only get
cent of emigrants have completed secondary education or
10 today. This makes it more difficult to find suitable team
higher, and 37.8 per cent have completed tertiary education.
members. Most Lebanese go to the Gulf countries (27 per
Most are between 15 and 34 years of age (76 per cent of
cent), or to North America or Australia (46 per cent). The
the 15,000 to 20,000 who leave each year).141 In a survey
highest rate of emigration is found among graduates in the
conducted in 2009 with alumni from four private universities,
fields of electricity, gas and water supply (85 per cent) or
67 per cent of male alumni and 45 per cent of female alumni
transportation and communication (57 per cent), and in the
were working abroad.142 According to our interviews with
medical sector.143
a career guidance centre, this trend does not seem to be
69
The upside of the large diaspora is the remittances sent back informally and with very precarious working conditions.
to Lebanon each year. These funds accounted for 14.1 per Lebanese employers tend to prefer foreign workers for
cent of GDP in 2016, totalling USD 7.3 billion.144 They play unskilled work, as they ask for lower wages, are not insured,
an important role in securing family income and represent a are easier to lay off and work longer hours.145
safety net for many families. In one interview, an ILO staffer noted that one of this
organisation’s biggest concern the unregulated and
Members of the large diaspora have the potential to return, unmonitored status of the labour market for the country’s
as many remain very attached to their country of origin, 250,000 domestic workers. It has been very challenging to
but usually do this only during the summer. One interview convince employers to enforce minimum working- condition
partner noted that the costs of living in Lebanon, especially standards, which would be a step up from the conditions
in Beirut and Mount Lebanon, have risen so much that one under which many domestic workers are employed today.
source of income is not enough to lead a decent life. This One minimal step would be to strengthen regulation of
mismatch between costs and income has been expanding the employment agency, which continues today to permit
over the last decade. Thus, for people working in the Arab unlicensed recruiters. The MoL is currently trying to link
states, Europe or the United States, there are few incentives domestic workers’ work-permit numbers with employers’
to return, to open companies or to invest in Lebanon. It also identities; this would enable the ministry to follow up in cases
seems to be difficult to find adequate jobs for very specialised such as complaints about the recruitment agency. Such a
employees, as the Lebanese job market is in general small. procedure would enhance accountability.
There are some prominent examples of returnees who have

founded companies; these include artificial intelligence REFUGEES AND ASYLUM SEEKERS
(AI) company Neumann, whose founder spent some years
working in France, and the Memo construction company, Since 2010, the size of Lebanon’s labour force has increased
which was founded after its owner’s return from Saudi Arabia. rapidly through the influx of Syrian refugees. The war in
The experience and the capital these individuals gained Syria has led to the exodus of around 5.6 million nationals
abroad made it possible for them to start quickly growing of that country. Most have gone to neighbouring countries
medium-sized companies. Several interview partners noted such as Turkey, Jordan and Lebanon. About 952,000 Syrian
that entrepreneurs of this type should be provided with refugees are registered in Lebanon, although the actual
incentives such as seed funding to return to Lebanon and number is estimated at around 1.5 million (including 40,000
start companies. Palestinians from Syria).146
Close to 70 per cent of working-age Syrian men are in the

FOREIGN MIGRANT WORKERS labour force (that is, employed or looking for work), while
just 10 per cent of working-age women are economically
Lebanon has been a destination for foreign workers since
active.147 Refugees are limited to work in certain sectors
the early 1970s. In 2015, the Ministry of Labour issued
(agriculture, construction and cleaning) primarily those
209,674 labour permits for foreign workers. However, the
that are not popular with native Lebanese or which have a
actual number is estimated as being considerably higher, as
tradition of employing Syrians in Lebanon. Before the Syrian
only a comparatively small share is registered. Most of these
crisis, an estimated 300,000 to 500,000 Syrians were living in
foreign workers are employed in construction, agriculture
Lebanon either seasonally or permanently as businessmen,
or domestic work (mostly women, in the last case), often
agricultural workers or tourists.148
The presence of the large number of refugees coming within Palestinian refugees within a community that has been living
a short period of time has supposedly had an impact on the in Lebanon for the last 70 years.152 These individuals too are
labour market more broadly, because refugees typically ask limited to work within certain professions, and experience
for wages that are about half the amount earned by native.149 poor working conditions, a lack of social protection and
Moreover, many Syrians in fact work in sectors other than low wages. Palestinian refugees benefit from a separate
those they are officially allowed to be in (like services).150 This system run by the United Nations Relief and Works Agency
has had a positive impact for companies and employers, for for Palestine Refugees in the Near East (UNRWA), which
example in the agricultural sector, as their labour costs have has proved to be effective and efficient in linking education,
dropped and they no longer have any problem finding low- skills development and employment. UNRWA is currently
skilled or semi-skilled labour. However, this has undermined under pressure because its previous main donor, the U.S.
labour-market opportunities for Lebanese youth in particular, government, elected to cut off funding in 2019, following
as they are more likely to compete with Syrian refugees in deep cuts in 2018. However, the group has managed to
sectors such as the informal services or hospitality, and for backfill most of the lost funding through contributions from
entry-level work (low/semi-skilled) more generally. other donors, and by November 2018 was lacking only USD
21 million.153
A recent analysis on the impact of the Syrian refugees in
Lebanon shows that areas that have experienced a large At the end of 2016, there were additional 21,761 registered
influx of refugees, which coincide with the economically refugees and asylum seekers in Lebanon from countries
lagging regions of North Lebanon and the Bekaa Valley, other than Syria. Refugees from Iraq represented the
have witnessed a sharp increase in unemployment rates largest share (86 per cent of the survey sample of UNHCR’s
among young Lebanese men, from 10 per cent in 2010 to vulnerability assessment). About 42 per cent of this
36 per cent in 2015.151 population works or is looking for employment, obviously all
In addition to the Syrians, there are about 174,400 registered within the informal sector due to the lack of work permits.154
demand for doctors, lawyers and other such professions in

CULTURAL PERCEPTION Lebanon is very limited.
OF EMPLOYMENT AND Even in sectors such as construction or hospitality, Lebanese

do not want to do the ‘dirty’ jobs such as concrete carpentry
JOBS or cleaning; rather, they prefer work as a foreman or chef.

The manual work on construction sites is often done by
foreign workers from Syria, and in the hospitality sector by
When discussing the labour market with Lebanese
workers from Bangladesh. Even at this level, the choice of
stakeholders, it soon becomes clear that tradition, perception
profession is not driven by market opportunities; for example,
and culture play an important role when it comes to choosing
some professions such as plumbing are in high demand, but
certain professions or working in certain types of jobs. The
there are hardly any Lebanese plumbers.
job market is quite segregated along the lines of ethnicity,
class and gender, a fact that will be elaborated upon in the
following sub-chapters
CULTURAL STIGMA OF TVET
STATUS OF SPECIFIC In parallel to low social status accorded to manual labour,

vocational and technical education has traditionally been
JOBS stigmatised in Middle Eastern societies, particularly for

women. Lebanese parents do not believe that TVET
qualifications add value to the course of professional and
Lebanese generally have a negative attitude towards manual personal development. Vocational education is seen as a
labour, and prefer white-collar jobs. Liberal professions such last resort for students who drop out of school or university,
as law, medicine and engineering are the most attractive or who have no other opportunities because they are from
professions due to their social value and status. Several vulnerable backgrounds.
interview partners made comments such as, ‘A Lebanese
girl would rather marry an unemployed lawyer than a well- As a result of the poor reputation of vocational training,
paid electrician’, or ‘It is very hard to convince an Lebanese many manufacturing and technical companies complain
mother to let her son go into vocational training’. The number of a lack of skilled labour. This lack is exacerbated by the
of people wishing to work in these ‘attractive’ professions, fact that graduates from technical schools who have earned
however, exceeds labour-market demand. As schools offer their recognised ‘job ticket’, the Baccalaureate Technique
very limited career-guidance services (see chapter on certificate, often elect to continue their studies to pursue a
Matching demand and supply), students receive no advice higher qualification such as the TS or Licence Technique.155
on finding alternative solutions, and there is little popular
awareness-raising regarding the fact that the labour-market
71
CHANGE IN PERCEPTION peak around the age of 25 and steadily decrease thereafter,
while men’s activity rates remain steady at around 90 per
Despite the poor reputation associated with manual labour cent until the age of 60 as shown in Figure 17.157
and vocational training, these perceptions have started to
change in the face of the economic crisis and the rising Lebanese women work in selected vocations and sectors.
youth-unemployment rates. Both cultural and structural issues have played a part in
In an interview, a Ministry of Labour representative indicated maintaining gendered occupational segregation. Women
that the perception of manual labour might be still poor in are more likely to be trained in and end up working in
wealthy areas and in Beirut, but that this perception was the fields of teaching, health and service work.158 This
changing in North Lebanon as people sought ways to earn segregation also exists within sectors, as employers tend
a decent living. Other interview partners confirmed that to be reluctant to hire women for managerial positions.
skilled technical graduates find jobs, and some can open Compared to their male counterparts, women are perceived
their own businesses after acquiring sufficient years of work as a higher employment risk, as their primary role is still
experience. Companies reported that the wages paid to considered to be homemaker and mother.159
technical staff were similar or even higher than the salaries
given to engineers, but that it was much more difficult to find Figure 18 shows the major economic sectors in terms of male
technical employees. and female employment. The most balanced distribution of
Stakeholders working in both in vocational training and in jobs between the two sexes exists in agriculture. However,
companies agreed that more effort is needed to change the agriculture attracts a relatively small share of people.
culture so as to make technical jobs more attractive. They Seasonal labour from Syria has traditionally played a strong
suggested that early career guidance should be provided at role in this sector, and its potential for employing more
schools; similarly, they proposed the launch of a campaign Lebanese citizens would seem to be limited. Trade is the
promoting the value of manual labour. They also agreed that next most gender-balanced sector. In manufacturing, there
training programmes need to be improved and made more are still substantial opportunities for employing women.
relevant, and that working conditions need to be improved. While the transportation and construction sectors are
completely male dominated, women mainly work in office-
related sectors.
GENDER-SPECIFIC
EMPLOYMENT
In general, the Lebanese labour market is male dominated.
Men are economically more active than women (respectively
accounting for 71 per cent and 23 per cent of the potential
workforce).156 Women’s professional activity rates tend to
Figure 17: Economic activity rates by age groups and sex.

Women
Men
Source: CAS (2011): The Labour Market in Lebanon.

Figure 18: Employment in major sectors by sex, 2009
Services, financial intermediation

and insurance
Transportation, post and telecom
Trade
Construction
Manufacturing
Agriculture
Source: CAS (2011): The Labour Market in Lebanon.
The gender-related wage gap was also reported to be lowest Current training programmes designed by NGOs tend to
in the services and trade sectors (6.2 per cent), as compared reinforce gender stereotypes. A common approach by many
to transport and communication, for example, where the gap NGOs targeting adult women from vulnerable backgrounds
was a full 38 per cent.160 In the agricultural sector, the wage is to provide training that encourages them to work from
gap was seen to be quite significant, with an average wage home, in sectors such as food processing or embroidery.
of USD 324 per month for women and USD 429 per month This practice is linked to tradition, and also reflects issues of
for men. personal security (i.e., with the goal of avoiding harassment
in the streets). Several interview partners criticised this
Given the higher average qualification profile of female approach, because such programmes isolate women instead
labour-market entrants, production-oriented services should of empowering them. One expert said: ‘Women need to be
not be out of reach. However, as elsewhere, boosting female part of the society and go out, not stay at home, in particular
workforce participation rates may require the existence of women who have experienced traumatic events. They
facilities that provide for child care or after-school activities. need transportation, and psycho-social support.’164 Such
issues should be considered by teams designing support
Women still remain highly underrepresented in management; programmes.
indeed, only 10.7 per cent of women occupy upper-level
positions. The share of female entrepreneurs as compared However, interview partners also pointed out that times are
to male entrepreneurs also remains low. Most working changing: Due to the economic situation, women are being
women (79 per cent) are employees, and only 15 per cent forced to support their families and start home businesses
are business owners or self-employed. Among working men, in areas such as food production or handicrafts. The Global
55 per cent are employees and 42 per cent are business Entrepreneurship Monitor shows that 47.5 per cent of female
owners or self-employed.161 In Lebanon, the difference entrepreneurs are driven by necessity, not opportunity.165
between the total early entrepreneurial activity (TEA)162 Moreover, there is a new generation of girls and women who
of men and women is nine percentage points: While the are choosing to establish opportunity-driven businesses and
male TEA is 28.8 per cent of the male working population, fight for their right to be independent and accepted. These
the female TEA is at 19.8 per cent of the female working women often are supported through programmes run by
population.163 NGOs like the Tripoli Entrepreneurs Club or Berytech.
73
The summary of challenges and opportunities shows that there are numerous opportunities within the Lebanese education
and training sector, which in turn could inspire a variety of future interventions.
Table 7: Supply side – challenges and opportunities for employment generation
Higher education
• High rankings in some education areas like maths and

science education
• High cost of private education and limited access
to public education exacerbates inequalities • Well-established education system, with some
private universities in particular providing very good
• Not guided by private sector labour-market educations
demands
• High rates of enrolment among women
• Few practical experience opportunities
• A reform process that concentrates on quality
assurance for higher education institutions (private)
Vocational training
• Internal quality issues in TVET system

• International and donor support
• Negative perception of TVET training
• Strategic framework has been adopted
• Inefficient spending and limited operational budget
for public institutions
• Potential revival of the Higher Council for TVET
• Limited involvement of the private sector
• Some private sector actors recognise the benefit of
collaboration with training institutions
• Limited coordination between TVET providers
• Income opportunities for self-employed graduates are
• Limited opportunities for on-the-job training
relatively high in some sectors
• High number of short, non-formal training courses
with low placement rates financed by donor money
Qualifications within labour force
• Limited soft and life skills
• Limited digital skills

• Many training providers, as well as donor interest and
support
• Low CV writing skills
• University graduates are Lebanon’s top export
• Oversupply of university graduates in medicine, law
product, and Lebanon’s education system has a
and engineering
strong reputation in the region
• Low supply of graduates from technical schools
• Students are typically bi/trilingual
who are willing to work in manual-labour jobs
• Lack of practical expertise after university or

technical school graduation
Labour emigration
• Large diaspora, with the potential to return home with

• Migration among the highly skilled leads to a lack increased skills and financial means
of skilled, experienced staff for middle-management
positions • High remittance levels
Labour immigration
• Increase in size of labour force has increased • Enough un/semi-skilled workers in sectors such as
competition for jobs (esp. low-skilled, entry level) agriculture, construction and cleaning
• Low wages and poor labour conditions for foreign • Low-cost workforce available for businesses,
and refugee workers households and farmers
Cultural perception of work & jobs
• Cultural stigma associated with manual labour

• Changes in perceptions taking place due to necessity
leads to a lack of Lebanese labour in all manual
to find work
professions
• Vacancies with good salaries can be used as
• Cultural stigma associated with TVET leads to a
examples for awareness campaign
lack of skilled labour in technical professions
• Overall low rates of labour-market participation

among women, and low or no participation in some
professions such as transport or construction
• Changes in perception of labour-market participation
• Underrepresentation of women in managerial
for women underway due to economic necessity and
positions, low number of female entrepreneurs
growing female activism
• Lower wages for women
• Donor programmes tend to reinforce stereotypes
75
MATCHING
DEMAND FOR AND
SUPPLY OF
LABOUR
77
MATCHING DEMAND FOR
AND SUPPLY OF LABOUR
How are demand and supply in the Lebanese labour market matched? How are job seekers guided into suitable jobs
and vacancies? How do companies recruit and maintain their staff? How is collective bargaining conducted with
regard to labour conditions and wages? As discussed in Chapter 5, the Lebanese labour market is characterised
by a mismatch between skills and open positions. This discrepancy derives from the lack of current labour
market information, insufficient career guidance, and the prevalence of recruiting and retaining practices that are
somewhat outdated. This chapter describes the current state of challenges and opportunities in terms of aligning
labour demand with its supply in Lebanon.
ACTORS
The following actors influence the alignment of labour demand and supply in Lebanon.
Ministries and public institutions
ACRONYM ROLE/TASKS
The National Employment Office (NEO) is a public institution headquartered in Beirut un-
der the responsibility of the Ministry of Labour with two other offices in Tripoli and Saida. Its
objectives include conducting research that underlies the formulation of employment poli-
cies for Lebanon, improving the employability and skills of new entrants to the labour force
through accelerated vocational training, finding job opportunities for job seekers through
the employment office and building the capacities of people with disabilities.
NEO is by law the only institution which is permitted to offer placement services. However,
this law is not enforced and many private labour agencies, portals and recruitment offices
are engaged in matching companies and job seekers. Intermediaries interviewed for this
study active in job-matching had never heard of this law. NEO itself would like to change
this law and establish a quality control mechanism (i.e., certification system) for private
National Employment service providers in this field.
NEO has been plagued by limited human and financial resources for many years and is
Office
regarded as a rather weak institution. Indeed, many companies and job seekers in Leba-
(NEO) non are not aware of its existence.
In 2019, the World Bank started a USD 400 million programme targeting improved eco-
nomic opportunities titled ‘Creating Economic Opportunities in Support of the Lebanon
National Jobs Program-for-Results Project’.
A pillar of the project is to improve the capacity for needs-appropriate services provided
to job seekers. This involves improving NEO’s profiling capacities. For example, young,
urban non-poor men with an education will require a different package of benefits than will
young, rural women without an education. Whereas interview training may prove relevant
for both, the former may also benefit from CV writing support and the latter from litera-
cy support. Capacity-building and job-matching services provided through private entities
(e.g., NGOs) and overseen by NEO constitute another pillar of the project. The impact of
these measures remains uncertain, but promising outcomes are anticipated.
The Central Agency of Statistics (CAS), which provides data on its website, is currently
conducting a comprehensive assessment of the Lebanese labour market in collaboration
Central Agency of
with the ILO. Other actors such as the World Bank, UNDP, UNHCR or the European
Statistics
Training Foundation have conducted labour market assessments in specific regions (e.g.,
(CAS)
North Lebanon and Arsenal) or for specific sectors.
Donors such as the ILO and World Bank work on improving labour conditions and the employability and placement of
Lebanese and refugees (see chapter on actors on the supply sides).
Private sector associations, NGOs unions
ACRONYM ROLE/TASKS
The General Confederation of Lebanese Workers/ Conféde ration Générale des Travail-
General leurs Libanais (CGTL) includes 50 major trade unions which are made up of 450-500 smaller
syndicates. The CGTL represents public and private sector employees who work for a variety of
Confederation of
employers including banks, social security services, electricity and water utilities, taxi firms, air-
Lebanese Workers ports and airlines. It is a partner in all tripartite associations and has government representatives
(CGTL) on its board. During the civil war, the CGTL managed to remain unified. However, the number of
member unions has since increased and the CGTL has suffered fragmentation.
The 150,000-member Syndicate Coordination Committee (SCC) represents public and pri-
Syndicate vate school educators as well as government administration staff. The key points of dialogue
Coordination – health plans, retirement/ pension plans and wages – are discussed among the six SCC com-
Committee mittees and government institutions (mainly ministries). Engagement with other social partners
(SCC) takes place occasionally, but not in a formalised framework, as the SCC is not involved, for
example, in a tripartite dialogue.
At the employers’ end, the Lebanese Businessmen Association/ Rassemblement de Di-

Lebanese rigeants et Chefs d’Entreprises Libanais (RCDL) was established in 1986 and aims to pro-
Businessmen vide Lebanese business men and women a role in shaping the future of the country’s economy
Association and in promoting economic liberalism. According to its representatives, the RCDL constitutes
(RCDL) the only multi-sector employer organisation at the CEO level and is fully private. The RCDL fre-
quently contributes concepts and other information relevant to wages and fiscal policymaking.
Some training providers are also active in matching their LinkedIn offer their services to job seekers and companies.
participants with job opportunities. One NGO with ample Most of the portals have a limited number of open jobs, only
experience in matching is the Lebanese Organization of HireLebanese offers a couple of hundred jobs at the same
Studies and Training (LOST). However, the training and time. The NGO Mubadarat wa Kararat has developed an
consulting institute LEAD, which offers more sector-specific app called Local Job Market which lists job vacancies. The
training in health care, also features placement as part of its job postings come mainly from within Lebanon, but there
training and has high retention rates. are also plenty of jobs posted for the region or abroad. The
portal Daleel Madani is specialised in listing jobs at NGOs
As part of their quality assurance accreditation process, and humanitarian organisations.
most private universities have begun developing
internal structures that support graduate transitions, There are two types of private job agencies, both of which
thereby enhancing the employability of their students. These work internationally. One is active in headhunting senior
include setting up academic and career counselling centres, executive and skilled professionals for highly paid jobs. The
creating linkages with the private sector, establishing other matches foreign domestic workers with families looking
internship programmes and organising job fairs. for household help. Interview partners mentioned about 800
job agencies, though the number is hard to confirm as there
Private online job portals like HireLebanese, is no central registry.
HuntingLebanese, Bayet or the global online network
79
MATCHING DEMAND AND SUPPLY
As explained before in the chapter on the qualification of the labour force, there is a strong skills mismatch in
terms of vacancies and the availability of highly qualified graduates. There are three areas in need of targeting:
improved labour market information, career guidance and a transparent system in listing vacancies.
to re-direct them into other fields or types of careers. Given

LABOUR MARKET INFORMATION the high price of tertiary education, there is an additional
strong disincentive to change the chosen path of study.
There is no recent, comprehensive data and information on
The MEHE reported that they offered guidance and
the Lebanese labour market. Lebanon has no established
employment offices (GEOs) in five of the public technical
labour market information system and no official labour
schools, but they found it difficult to get job offerings from
market needs analyses have been carried out for several
companies as many of them were family businesses which
years. Most of the surveys and analyses that do exist are
did not open recruiting to external applicants. The ministry
performed with the financial support of donors, particularly
also mentioned that they could intensify their outreach
the ILO. These analyses cover only parts of the country or
activities as a means of increasing the number of job offers.
certain sectors and are tailored to the needs of the donor
Students interested in working in the NGO sector or in
organisation, not to Lebanese policymakers. CAS is currently
humanitarian organisations have found their own form of
implementing a labour force survey in coordination with the
career guidance: After graduation, they volunteer to acquire
ILO scheduled for publication in 2019. As there is no current
practical experience, relevant contacts and an understanding
data, there are also no five-year labour market projections
of whether the work involved is suitable for them.
or indications of what trends will influence job opportunities
Sound career guidance would also help reduce the high rate
in this period. This makes it impossible to do proper career
of unemployment among those with some work experience
guidance for students at schools and universities.
(e.g., in manual labour) or those who have returned from
There are no structured and consolidated mechanisms to
abroad. If these individuals receive good career advice,
gather information about the skills needed by companies
including a detailed profiling of their skills, talents and
and the skills supplied by job seekers. In short, there is no
ambitions in addition to some training, they could be re-
labour market information system. Nevertheless, Lebanon
directed to open positions (e.g., technical jobs). This would
needs a comprehensive national system of permanent data
also demonstrate to employers that past experience is often
collection for all jobs and sectors in order to develop effective
relevant to the open position.
policy recommendations and activities for the labour market.
Several stakeholders consider this task best placed with
NEO and the Ministry of Labour. JOB SEARCH
There is also no exchange between the providers of private
matching services and NEO. Cultivating interaction between A paradox of the Lebanese job market is that there are
the two would permit a more accurate assessment of the jobs, but nobody knows where they are, as there is little
current situation and allow everyone to better understand transparency in the market of vacancies. If workers are
the trends under way and help formulate strategies that are not subject to full transparency of all available jobs, they
informed by the experience of service providers, job seekers cannot apply for the job that suits their skills. At the same
and companies alike. time, without a centralised full registry of all job seekers,
companies cannot effectively locate the workers they need
with the right skills. This situation leads to considerable
CAREER GUIDANCE frustration on both sides of the market and results in a
mismatch of skills and job profiles.
There are several complaints among interviewees about The search for new jobs is usually done through personal
the oversupply of doctors and lawyers and the absence of contacts and face-to-face inquiries: CAS for example
formalised career guidance for students at the secondary reported that 36 per cent of all job seekers attempt to find
school level. There is no institutionalised form of advice at jobs through acquaintances, friends, or relatives, while 32
public schools and very little at private ones that provides per cent present themselves directly at the offices of potential
an overview of all professions, different levels of jobs (e.g., employers. Some 30 per cent of job seekers use the internet
technical or administrative) and educational institutions. or scan job advertisements in newspapers. Only 2 per cent
Parents are also not well informed about career options. made use of public or private employment agencies.166
Some observers have advocated partnering with UNICEF
on career guidance, but the MEHE feels this task should be A 2015 GIZ tracer study examining how vocational training
carried out by the ministry. graduates look for jobs revealed the same pattern:
In general, it is difficult for the education sector to assess and According to the graduates surveyed, the main channels for
measure its relevance to labour market needs as there is finding their first job were personal connections with friends
little exchange with companies. Thus, many graduates enter (37.5 per cent) and relatives (25.2 per cent). Interestingly,
the labour market with little awareness of what employers companies looking for employees report that their most
are looking for. common hiring strategies involve references by teachers
Universities provide career and placement services, but from VET providers and direct contacts with VET career
once students have chosen their course of study, it is difficult
centres, as show in Figure 19.167
Figure 19: Recruitment methods vs. job search techniques
Employers N=91
Graduates N=301
Source: GIZ/ILO/ETF (2015): Employment Impact and Education Quality of the Dual System in Lebanon. Findings from a tracer study as part of the GIZ
DESME Programme
Job searches in Lebanon do not benefit from an accepted easier to find a job and get a visa for work in other countries.
and widely used mechanism to facilitate the matching Lacking this form of social capital, applicants from vulnerable
of profiles of job seekers with vacancies. As noted in the backgrounds are limited in the geographic reach of their
chapter on actors in matching demand and supply, there are search.
several actors offering such services, but they cover only
a fraction of the job market. Interview partners stated that The informality of the job search also means that people
many companies and people were not aware of NEO and its have little experience in applying for jobs. Because jobs
free-of-charge services. are located often via word-of-mouth through family or friend
connections, people tend to discuss their connections and
The informal nature of the job search disadvantages not their skills and qualifications during an interview.
job seekers with a low-income background. Even with a
university or technical school degree, these individuals Some new internet portals such as BOT (http://letsbot.
generally do not have the personal contacts to find a job in io; co-financed by the KfW) which match freelancers from
which they can apply their skills and fulfil their potential. vulnerable backgrounds in the IT and data sector with
potential clients. The portal is run by the iNGO DOT Lebanon
This also affects labour mobility among people with a low- which provides training in digital literacy. After the training,
income background. Graduates from reputable universities qualified students are listed on BOT. DOT Lebanon also
such as the American University of Beirut can rely on the markets the portal and acts as a project manager in more
university’s career centre for help in finding employment in complex projects and ensures the quality of the work done
Arab countries, and students with a middle class or higher by the freelancers. The number of freelancers on the portal
background often have family ties abroad, which makes it is still low, but it is a promising approach to bring greater
transparency to the job market.
81
in cafés, companies often ask existing staff or foremen
RECRUITING STAFF to spread the word and look for suitable staff in their
personal networks. To acquire fresh graduates, companies
The quality of the recruiting process varies depending on the liaise with university recruitment offices and nurture close
size of the company. Interviewed medium-sized companies relationships with people in university IT departments.
noted a lack of capacity in recruiting procedures. However, For more experienced staff, companies post vacancies
large companies with their own human resources department on professional online networks like LinkedIn or hire
also noted a lack of structuration in their recruiting processes. recruitment agencies. Nevertheless, word-of-mouth remains
Only the largest companies could report having a highly an important means of identifying candidates for high-level
structured process with a large roster of qualified potential white-collar positions. An ILO study found that companies
candidates. are reluctant to leverage other more formalised routes such
as NEO’s service because they felt that the applicants sent
The number of applications companies receive reflects the through that system were often less qualified.168
situation on the job market. For an entry-level engineering
position appropriate for a university graduate, companies A World Bank survey found that small firms recruit primarily
in Beirut receive 100 to 120 applications. For low- to semi- people they know directly or indirectly as shown in Figure
skilled positions, they might have 10 candidates to choose 20. In addition, small firms attach greater importance to
from. And on the level of senior experts and skilled staff gender and age than they do skills. Whereas gender and
it is hard to find candidates, especially in regions outside age still play a major role in medium-sized companies,
Beirut or Mount Lebanon. Companies report that due to the work experience and job-related skills are also considered
lack of potential candidates, companies will often win over important, and personal references are not as prominent.
a candidate from a competing company when trying to fill a Large companies, which usually have an HR manager or
middle-management position. department, look at a candidate’s educational attainment,
field of study, quality of education. These companies do not
The channels used to find and recruit staff depends very engage in discriminating practices that would emphasise
much on the level and type of job. For manual workers in personal ties, gender and age as relevant factors.
construction or manufacturing as well as student helpers
Figure 20: Factors taken into consideration by firms when recruiting for a position
Quality of most recent schooling

Personal references
Quality of most recent schooling
Personal references
Source: World Bank (2012): Good Jobs Needed.
RETAINING STAFF
The limited scope of job opportunities, salary prospects and job responsibilities often result in young Lebanese professionals
leaving the country after graduation or within two to three years of gaining their first job.
To avoid a high turnover of their white-collar staff, company owners have pursued various means of retaining their staff
that include carefully selecting a compatible team and providing good salaries, interesting and meaningful work and career
prospects while fostering a welcoming corporate culture.
learn, the sooner they can engage in productive work for the
THE RIGHT TEAM company. This is crucial given the risk that they leave after
three years of employment.
Companies report that they spend a lot of time in recruiting
the right candidates as they feel only very good fits to their
Soft factors on the personal level also play a big role. For
team will stay in the company for more than two years.
example, Younes Café looks for team members who share
While skills are important in this process, potential and the
the company’s ethics and spirit. By focusing on these factors,
willingness to learn are decisive. Companies express that
these companies have created teams that like to work with
only a few universities provide solidly trained talents and
each other and have good personal relationships. In some
that they therefore have to train graduates, particularly in
companies, the team is the most important factor for people
fast-moving fields such as IT. The faster these individuals
who decide to stay with the company (e.g., T-Marbouta
kitchen team).
83
GOOD WAGES, INTERESTING WORK CAREER PATH
In general, wages in Lebanon are comparatively low. In many Lebanese companies, there are no clear career paths
Companies report that university graduates earn about and company owners rarely demonstrate an awareness of
USD 800 – USD 1,000 per month, which is not enough the need to show their teams how to grow with and within
to maintain a proper living, particularly in Beirut or Mount the company. This is not only relevant for white-collar jobs
Lebanon. All the companies interviewed said that they would but also for staff in fields such as the construction industry.
pay “good” (i.e., above average) wages in order to retain Successful companies with low turnover rates such as
employees. After two years of employment, exceptional staff Younes Café or Memo have clear trajectories for engaged
get pay increases on the order of 200 to 300 per cent and people who wish to stay with the company. At Memo, it is
are promoted to a senior position in order to ensure they possible to go from an unskilled position to a skilled position
stay with the company. In addition, responsible companies or even a lower management position (e.g., foreman) in
register all staff at the National Social Security Fund (NSSF) four to five years. Younes Café provides young talent with
or pay for their private insurance and other benefits. various opportunities. For example, the current operations
manager started 11 years ago as a waitress at the age of 18.
On regional and global comparison, wages in Lebanon
are low. All companies therefore stress that graduates and
professional staff need interesting, demanding work that has
CORPORATE CULTURE
a positive impact on the business and society in order to
Modern corporate culture is not a common feature of
make them feel they are relevant and that they are an integral
Lebanese companies. Family businesses in particular
part of the company. For start-ups and social businesses
are often managed by owners who are in their seventies,
which have this spirit built into their operations, it is easier
who favour strict hierarchies and do not involve staff when
to retain staff. Employees in these companies also do not
making decisions.
expect higher wages as they feel their work is important and
There are, however, examples of companies that have
they derive satisfaction from ‘saving the world’. However,
created a corporate culture based on mutual trust and in
companies note that many graduates’ expectations
which staff participate in the decisions of the company.
regarding income and responsibility are too high, particularly
Companies like code&dot state that their staff feel at home
given their qualification and skills. Expectation management
in the office and as if they were owners in the company. At
at universities may be one approach to address this.
Younes Café, the owner listens and follows the advice of his
staff who are involved in ensuring the success of the coffee
shops.
WAGES AND COLLECTIVE BARGAINING SYSTEM

Wage data for Lebanon is particularly scarce. A World Bank survey of 2010 indicates that working Lebanese’ average
median monthly earnings (defined as wages from employment and revenues from the businesses of the self-employed)
was at about USD 616. Those employed in the formal private sector and the self-employed were found to have above-
average earnings, and those in the informal economy had less-than-average earnings (Table 8).169 The evidence from this
survey suggests that earnings were positively correlated to educational attainment, even in the informal economy.170
Table 8: Estimated median monthly earnings by employment status in Lebanon’s private sector, 2010 (USD)
EMPLOYEMENTS NO FORMAL PRIMARY SECONDARY TERTIARY

TOTAL
STATUS EDUCATION EDUCATION EDUCATION EDUCATION
Formal employees 533 633 667 800 667
Informal
333 400 433 533 442
employees
Self-employed 600 667 800 867 667
Weighted 516 595 671 768 616
Source: ILO (2015): Towards Decent Work in Lebanon: Issues and Challenges in Light of the Syrian Refugee Crisis. Lebanon.
In 2018, an interview partner stated that salaries for entry- The current level of monthly minimum wages (last changed in
level technical skilled workers are about the same as that 2012) is USD 450 and may be higher than in other countries
of university graduates (approx. USD 1,000). The interview in the region such as Jordan, Morocco or Tunisia as shown
partner also noted that a higher-level foreman salary can in Figure 21. However, the comparatively high cost of living
equal that of an engineer. in Lebanon needs to be factored into this calculation.
Figure 21: Minimum wage (USD per month) for a full-time worker
Range: 0-3,721.60. Median: 233.97.

Source: World Bank, Doing Business Index, http://www.doingbusiness.org/data/exploretopics/labour-market-regulation [retr. 2015-Nov].
However, Lebanon is a member of the ILO and has signed

BARGAINING SYSTEM AND LABOUR most of its core conventions. The ILO Regional Office for the
CONDITIONS Arab States is located in Beirut and the ILO engages with
the government on creating decent work opportunities and
Labour relations have not been smooth in Lebanon›s promoting labour rights throughout the country although the
history. The strong political and economic power acquired implementation of the ILO convention is not always followed
by merchant families following independence has had a through.
one-sided impact upon these relations. Throughout the
1960s and 1970s, Lebanon was subject to several strikes The ILO is in continuous consultation with the Ministry of
that addressed working conditions, wages and labour rights, Labour in order to improve labour administration, labour
for agricultural and industry labourers alike. inspection systems, as well as job placement services.
It also pays attention to the situation of foreign migrant
In Lebanon, collective bargaining that results in minimum workers in Lebanon, Palestinian and Syrian refugees and
wage adjustments is often followed immediately by price child labour issues. Progress on these issues, as for other
increases in goods and wage increases for members of policy fields, is hampered or delayed by political gridlock in
parliament. The government has also often exercised the government.
tight control over the social partners, and employees›
organisations in particular.
85
Falling under the mandate of the Ministry of Labour, the
SOCIAL PROTECTION NSSF, established in 1963, is the largest social insurance
institution in Lebanon, providing social security mainly to
POLICIES private sector full-time workers. The NSSF is governed by
the Lebanese social security code, legislating mandatory
coverage for all employees in the private sector. While the
A number of public social security schemes linked to spirit of the law planned for an eventual coverage of all
employment are available to the local working population. citizens in further implementation stages, several categories
This includes the National Social Security Fund (NSSF), of workers, including agricultural workers, fishermen and
Fund for Civil Servants, Fund for the Military, Fund for domestic workers were excluded, in addition to people and
Teachers and two funds for security forces. Private workers who do not have set wages. A possible loophole for
insurance schemes are also available, but at considerable this issue is article 72 of the code which allows the NSSF’s
cost to subscribers. Despite this multiplicity of programmes, board of directors to determine a lump sum subscription for
around 50 per cent of the Lebanese population remain these categories. The NSSF may offer membership to non-
without coverage171. This includes the poorest and most employees, including business owners, the self-employed
vulnerable informal workers and self-employed who cannot and retirees, through voluntary enrolment qualifying them
afford private insurance. only for health benefits in return for a subscription fee.
The NSSF provides coverage to 47.8 per cent of all insured, Ultimately, most beneficiaries of the NSSF are full-time
while remaining public sector workers are covered by employees (approximately 74 per cent in 2014, latest
army and security insurance schemes (30.8 per cent of all available data from NSSF shown in Figure 22).
insured). Of the remaining insured, some 16 per cent have
private insurance172.
Figure 22: NSSF subscribers, in numbers, 2014
Source: National Social Security Fund, insured and beneficiaries’ statistics. https://www.cnss.gov.lb/index.php/statisctics/cnssinsram
The NSSF is a contributory fund, financed through employees in the private sector are not registered with the
contributions from the employer (21.5 per cent of salary) and NSSF.173 Cited reasons for this include the high cost of
employee (2 per cent of salary) and the government. While employer contributions and the lack of strong enforcement
all employers are required by law to register their employees mechanisms to ensure that employees are registered.174
in the NSSF, there are estimates that over 40 per cent of
The benefits provided by the NSSF include:
Includes a spousal allowance of USD 40 and USD 22 for each

child, up to a maximum of five children. The family allowance is
FAMILY ALLOWANCE:
attached to the father’s salary. Women can qualify only as widows
or sole providers.
This covers employees and their dependence for maternity and

HEALTH BENEFITS: illness for 90 per cent of all hospitalisation costs and 80 per
cent of medication and examination expenses.
Retirees received an end-of-service indemnity amounting to

END-OF-SERVICE INDEMNITY: one month’s salary for each year of work. In addition, health
coverage is lost upon retirement.
Unemployment, disability insurance and pensions are not worked full-time for more than 20 years and for those retiring
provided by the NSSF. Although the NSSF law calls for after February 2017.
work-related accident beneﬁts, this part of the law was never The insurance provided to public sector employees (i.e., civil
implemented and the only available beneﬁt is the coverage servants, military, teachers and security personnel) provide
– provided for by the labour law – of immediate treatment of considerably more coverage, including a higher end-of-
such accidents by the employer.175 service indemnity and, in some cases, a lifetime pension.
Of greatest concern to most workers is the lack of a proper This is considered one of the main reasons why public sector
pension scheme. The end-of-service indemnity is not employment is considered desirable among job seekers.
considered sufficient to cover expenses in old age, and It should be noted that for a variety of reasons, including
often turns retirees into dependents on younger working delayed government payments, the NSSF is riddled with
family members. Health coverage for retirees by the NSSF debt and requires considerable reform in order to improve
was instituted as recently as 2017, where retirees can pay its services. At the beginning of 2018, the Lebanese
11 per cent of their end-of-service indemnity in exchange for government owed the NSSF USD 1.5 million, according to
NSSF insurance. However, this only applies to those who Labour Minister Mohammad Kabbara.176
Registered foreign employees and their employers have left without any insurance coverage, despite often working
to pay contributions to NSSF, but unless their countries of in high-risk jobs.
origin offer equal treatment to Lebanese workers, foreigners Employers of foreign domestic workers are required to
are excluded from benefiting from its coverage. Palestinians register their employees in basic health insurance in order
have partial access to NSSF benefits, limited to end-of- to obtain their work permit.
service indemnity (calculated at 8.5 per cent of their wage).
However, both Syrian and Palestinian informal workers are
87
The challenges and opportunities of the previous chapters are summarised below.
Table 9: Matching – challenges and opportunities for employment generation
Labour market information
• Lack of current data; last labour market survey

done in 2009
• No structured system of ongoing collection of la-
bour market data; only one-off studies financed by
• Current labour market survey supported by ILO
donors
• Limited dialogue between public sector, training
providers, placement service and companies
• No exchange between NEO and providers of pri-
vate matching services for standards or data
Career guidance
• No early career guidance at public schools, little at

• Career guidance available at universities
private
• Volunteering helps graduates enter the NGO job
• No career guidance for the unemployed to re-direct
market
them to other professions
Job search
• No transparency in the job market, no full overview

of open jobs and job seekers
• No widely accepted mechanism or actor to match
• World Bank programme to support NEO
jobs and job seekers; NEO has not been a powerful
• Job fairs, private internet portals, recruitment
actor for many years
agencies and career centres support job seekers
• Job search mainly done through personal contacts
• Some new platforms for freelancers (e.g., BOT) to link
which disadvantages job seekers from vulnerable
them to job opportunities
backgrounds and limits labour mobility
• People are not used to applying for jobs in a formal
process
Recruiting staff
• Large companies have structured recruiting processes

• Recruitment channels of small companies mainly
and objective criteria to rate candidates
informal and practices rather discriminating
• Some pilot projects to improve relationship of
• Quality of recruiting process may be improved in
academia and companies like competitions, mutual
companies of all sizes
R&D or longer internships
Retaining staff
• Wages relatively low, especially when considering

high cost of living in Beirut and Mount Lebanon
• Lebanon has ratified most ILO core conventions
• Implementation of ILO core conventions is not
• Existing unions with a strong history; some still strong
followed through
financially or politically
• Minimum wage is comparatively low and has not
been raised since 2012Weak labour movement; no
really active unions
Wages and labour conditions
• Wages relatively low, especially when considering

• Lebanon has ratified most ILO core conventions
high cost of living in Beirut and Mount Lebanon
• Existing unions with a strong history; some still strong
• Implementation of ILO core conventions is not fol-
financially or politically
lowed through
Social protection
• The NSSF has a rather low overall penetration in

the population
• NSSF does not grant pensions, unemployment and
• There is a national social security fund, NSSF, with
disability insurance
family allowance, health coverage and end-of-service
• NSSF is not open to most foreign workers
indemnity
• NSS is plagued by huge debts and other structural
problems
89
IMPORTANT
SECTORS FOR
EMPLOYMENT
GENERATION
91
IMPORTANT SECTORS FOR
EMPLOYMENT GENERATION
This chapter examines the following key sectors of the Lebanese economy: agro-food processing, construction, tourism
and hospitality, ICT, creative industries and health care. In addition to describing each, we identify their respective growth
opportunities and the skills needed to find employment in each sector.
The selection of the sectors is in line with the findings of the McKinsey country strategy. As shown in Figure 23, five sectors
with high potential have been identified: tourism, the knowledge economy, financial services, industry and agriculture.
The knowledge economy has the largest job-creation potential, followed by tourism and the industrial sector. The construction
sector is considered as a potential job multiplier based on the opportunities of the Capital Investment Programme and in
anticipation of an eventual end to the Syrian crisis. The agriculture sector has the lowest job creation potential of the top five
sectors, but the transformation to high-value crops could double the agricultural share of GDP by 2035, compared to 2018.
Agro-food processing has the highest rank of 13 industrial sub-sectors that are considered to have growth potential. Other
sub-sectors that are classified as highly competitive include pharma, prefab buildings, furniture and jewellery. According to
McKinsey, Lebanon is a regional leader in the creative industries, one of the identified niche sectors, and has the potential
to become a creative hub177.
Figure 23: Sectors with highest direct economic potential in 2025
POTENTIAL LEBANON’S
POTENTIAL JOB INDUCED JOB
SECTOR ADDITIONAL GDP COMPARATIVE
CREATION K JOBS MULTIPLIER
USD BN ADVANTAGE
Tourism 1.6 40 2.1

High
comparative
Knowledge
advantage, 2.2 48 1.5
Economy
marco potential
and BoP impact Financial
1.8 12 1.4
services
High BoP Industry 0.7 23 2.7

potential and
regional balance Argiculture 0.5 1 1.2
Diaspora N/A N/A N/A
Education 0.7 18 1.3

Niche plays with
BoP impact
Healthcare 0.5 19 1.3
Oil & Gas 0 0 1.7
Real Estate &

1.6 10 2.3
Construction
Retail & Com-
1.6 -7 1.2
Negative to low merce
BoP impact Transport &
0.4 3 1.5
Logistics
Power & Water 0.2 1 2.2

Postive
Source: McKinsey (2019): Lebanon Economic Vision. Neutral Negative

AGRO-FOOD
KEY INDICATORS
2.66% 1,414 20,607

CONTRIBUTION TOTAL TOTAL
TO GDP (2015) COMPANIES EMPLOYEES
(IDAL) (2017) (2010)
Support for business development is provided through

KEY ACTORS several organisations including Agropole, which supports
small enterprises and start-ups, and the Agritech incubator,
The sector is regulated by several state entities including which provides technical and financial assistance to start-
the Ministry of Industry, which is responsible for ensuring ups.
quality standards are met and promoting better production Financial institutions support to SMEs in the agro-food
practices. LIBNOR, the public Lebanese Standards sector is provided through Kafalat, which guarantees loans
institution linked to the Ministry of Industry is charged with for up to USD 400,000 through commercial banks. The
issuing national standards. The Ministry of Agriculture (MoA) Economic and Social Fund for Development (ESFD) also
plays a role in enhancing the linkages between agricultural supports loans up to USD 50,000 for SMEs, including those
and agro-food activities. In terms of enhancing export, the in the agro-food sector, through risk-sharing with banks.
Ministry of Economy and Trade plays a role in developing Because the sector is considered a development priority,
partnerships with the European Commission, and the several international organisations have been involved in
Investment Development Authority (IDAL) which assists in sector research, technical support and development. This
the support and promotion of agricultural products. includes the Food and Agricultural Organisation (FAO),
the United Nations Development Fund, the United Nations
Research institutions include the Lebanese Agricultural Industrial Organization and USAID, which is running a five-
Research Institute and the Industrial Research Institute, year programme (LIVCD) to improve the competitiveness of
which is attached to the Ministry of Agriculture. Lebanese products.
Associations involved in the advocacy and promotion of Other enablers include raw material suppliers such
products include the Syndicate of Lebanese Food Industries, as farmers, co-operatives, independent food safety
the Association of Lebanese Industrialists and the Syndicate laboratories, machine suppliers, providers of extension
of Agrifood traders in Lebanon, as well as the chambers of services and educational institutions that provide the sector
commerce. with the necessary human capital.
93
Figure 24: Key stakeholders in the agro-food industry
Framers' and
Employees'
Unions
Source: adapted from UNDP (2016): Mind the Gap.
GROWTH POTENTIAL & JOB CREATION needs.182 In interviews with food producers and distributors,
many stated that they have had to rely on imported raw
The agro-food sector constitutes an important component materials due to insufficient supply both in quantity and
of the Lebanese economy. While accounting for 2.66 of the quality. There have been some linking initiatives: Gardenia
GDP, it generates 35 per cent of the manufacturing output, Spices, for example, has provided capacity-building training
programmes and instituted a quality control mechanism with
with an estimated size of USD 2.33 billion.178 Between 2009
independent farmers in the Bekaa Valley in order to source
and 2013, the sector grew at a compound annual growth
vegetables for Gardenia’s pickling products. With proper
rate of 10.87 per cent, showing continuous and steady
support along the value chain, the sector offers possibilities
development.
for growth and expansion, both for the local and international
The largest share of industrial establishments is owned by
markets. As one study shows, only 55 per cent of possible
agro-food enterprises, with 1,414 or 22 per cent of companies
productive areas are exploited.183
involved in agro-industrial activities.179 However, these
IDAL has recognised agro-food production in the context of
enterprises are characterised by an imbalanced structure
growing demand for Lebanese products as one of the main
with large competitive investments on the one hand, and
sectors for investment and export potential. In 2017, it has
family and/or co-operative-based small production units on
accounted for 16.9 per cent of total exports and 21 per cent
the other. The majority of food industry and processing units
of industrial exports.184 Most of these exports are destined
are modest, employing six workers on average.180 The latest
to Arab countries (non-GCC 33 per cent, GCC 31 per cent,
survey conducted by the Ministry of Industry found only 10
see Figure 25). While the Syrian crisis has had a negative
firms having more than 100 workers and only seven with
impact on the Lebanese economy and its export potential
more than 250 workers. Overall, the sector employs 20,607
due to the land border closure, exports to Syria nonetheless
workers.181
rose at a compound annual growth rate of 2 per cent
Both the agricultural and agro-food sectors have attracted
between 2014 and 2017 as a result of the decrease in Syrian
donor and development support, and especially within the
production. IDAL has identified in particular olive oil, wine,
context of the Syrian crisis. The sector has high value chain
dairy products and dried fruits and nuts as products with a
potential and can create employment opportunities for rural
comparative advantage. In addition, international demand
populations, as well as women and Syrian refugees in
for Mediterranean and Lebanese cuisine in particular,
particular.
mainly among the diaspora, could potentially influence a
Agro-food production relies heavily on imported raw
diversification of products to include pickles, hummus, and
materials as well as on the country’s small agricultural
frozen meals (mezze).
sector. Lebanon imports 80 per cent of its food demand, as
the agricultural sector does not produce enough to meet its
Figure 25: Export destinations for agro-industrial products, in per cent, 2017
Source: IDAL (2018): Agrofood Industry 2018 Factbook.
However, there are key challenges to increasing exports. with numerous countries; and access to financing.
They include instituting quality standards that affect the Several of the actors within the agro-food ecosystem are
entire value chain and begins with agricultural practices;185 attempting to tackle these challenges. IDAL’s Agri-Plus
land route closures that have increased the price of exports; programme has been providing financial incentives for
high production costs and the lack of opportunities for companies to improve quality and packaging standards. To
creating economies of scale with high competition from the cut export costs, it has also launched the MLEB programme
region;186 the weak marketing structure of products with that covers part of the cost of exports by sea. However,
respect to design packaging, branding and adaptation to between 2015 and 2019, only nine companies were able to
international tastes; a lack of or outdated trade agreements benefit from the programme.187
among 40 per cent of companies. With the exception of

SKILLS engineering or lab technicians, recruitment is often carried
out on an informal basis and most workers are trained on
While several universities in Lebanon offer agriculture and
food industry programmes, most companies have reported the job.190 For managerial and support staff, more than half
considerable gaps in skills that pose a significant threat to the companies report deficits in marketing and marketing
the growth of the sector. Most tertiary education graduates research. Around 40 per cent of employers also report
have high wage expectations and most of the companies in concerns regarding written communication abilities. For
the sector, especially considering their size, cannot afford to workers at the professional level, such as food scientists
match their expectations. and engineers, companies cite weak written and oral
Food production training is offered in vocational education. communication skills that limit their ability to leverage
However, interest among young students in agricultural research and development as a concern. Most of the gaps
education for such training is weak. These schools are found among semi-skilled workers. These include
require extensive support in order to comply with the new writing and communication skills (90 per cent), workers
requirements and challenges of the agriculture, including struggling with new technologies (60 per cent), conducting
considerable investment in operating costs. MEHE’s Agro- and maintaining quality control (60 per cent), effective
Food Technical Institute in Qab Elias had 50 students monitoring and evaluation (50 per cent), and employing
techniques of cost control (50 per cent).
registered in 2016, less than 20 per cent of its potential188.
A survey of MSMEs in the agro-food sector189 identifies
recruitment and retention of qualified staff as a problem
95
Table 10: Strength-Weakness-Opportunities-Threat (SWOT) analysis, agro-food sector in Lebanon
Strengths Weaknesses
• Strong country brand awareness

• High cost of production
• High profitability in some niche products
• Lack of accreditation and certification, poor
• Ability to export catering services
performance of local laboratories and discrepancies
• Ability to diversify to a large array of international
with safety and traceability standards
cuisines
• Lack of technical and management skills
• Ability to export high value-added products
• Lack of adequate information about foreign markets
• Existence of support programmes for R&D (export
• Lack of external trade strategy (strategic protection,
promotion, quality programmes, credit guarantee
promotion, market intelligence)
schemes)
• Minimal R& D in product development
Opportunities Threats
• Lebanese food products are considered to be of

• Lack of sufficient linkages to the agricultural sector for
high quality
material sourcing
• Favourable regional and international trend
• Poor inadequate transport infrastructure
• High potential for growth with diversification of
• Disruption of exports through the Syrian border
products
• Insufficient number of labs and control centres
• Government support: agro-food in MoA strategy
• Limited efficiency of supporting institutions (co-
and MoI vision
operatives, syndicates, chambers)
• Continuous interest from international donors to
• Negative social perception of VTE
support the sector
• Competition from neighbouring Arab countries that
• Existing co-operatives
benefit from lower production costs, direct subsidies
• Open sector that allows employment of rural
and larger economies of scale
populations, Syrian refugees and women
Source: adapted from GIZ, 2017.

CONSTRUCTION
KEY INDICATORS
3.76% 110,600
LEBANESE
CONTRIBUTION TO
GDP 3,400 350,000
combined with TOTAL
real estate about COMPANIES SYRIANS
20 per cent TOTAL
(2017) EMPLOYEES
The Order of Architects and Engineers issues general

KEY ACTORS guidance, administers a code of conduct, provides engineer
work permits, and lobbies for amendments to construction-
At the regulatory level, the sector is governed by ministries related laws.
such as the Ministry of Public Works and the Ministry of
Environment which provide national level governance Banks which provide residential housing loans and financial
for the industry as well as technical support services. support to MSMEs are essential to the sector.
Regulatory institutions like the Lebanese standards Other actors in the construction sector include Electricity of
institution LIBNOR implement rules and regulations. There Lebanon, Bureau de Control (for large construction projects),
are also independent regulatory bodies that seek to apply the National Water Authority, insurance companies, and
international standards, such as the International Federation educational institutions (universities, vocational schools, and
for Consulting Engineers. vocational courses providers) that provide the construction
Municipal governments are responsible for issuing sectors with the needed human capital. The diagram below
construction permits and providing oversight at the local level. highlights the key stakeholders in this sector.191
Figure 26: Key stakeholders in the residential construction industry
Vocational
Course
Providers
Vocational
Schools
Ministry of
Public Works
Source: UNDP (2016): Mind the Gap.
97
like sewage and roads, but it is expected to secure 900,000
GROWTH POTENTIAL AND JOB CREATION jobs – presumably many of them in the construction of
infrastructure.196 Other donor organisations like UN Habitat
The real estate sector and construction are cornerstones of support, for example, are providing financial support for
the Lebanese economy, with a combined GDP contribution the renovation of the market in Saida or the rehabilitation
of about 20 per cent (2017). The construction sector alone of deprived urban areas in North Lebanon (GIZ’s UDP-
employed roughly 460,600 people, 110,600 Lebanese and NL). The new PPP law will enable the building of physical
350,000 Syrians.192 It affects many other sub-sectors like infrastructure within the private sector which might leverage
engineering, interior decoration, property management and more capital, especially in innovate sectors like renewable
furniture and electronic equipment retail. Yet, the building energy.
boom of the last decade has cooled down drastically.
Property sales have declined by 20.6 per cent in the first There is much discussion regarding Lebanese construction
eight months of 2018 after a 14.5 per cent increase in companies’ role in the reconstruction of Syria. While some
2017.193 The Beirut chamber of commerce estimates that interview partners are certain they will play a role given the
there are 50,000 unsold apartments in the city. This decline experience in rebuilding destroyed infrastructure, others
in sales did not only affect large flats and houses, but also believe this will be done by large international companies
smaller projects, as the Central Bank discontinued its with more convening power than Lebanese companies.
subsidisation of loans in 2018 due to a lack of funding. The Nonetheless, all interview partners agree that Lebanon and
year 2018 marked the third year of decline in construction North Lebanon in particular will play a role, especially since
activities. After a drop in construction permits by 4.1 per cent the latter might become a hub for international companies
in 2017, the decrease was at -23.8 per cent for the first eight involved in reconstruction.
months of 2018.194 Office building construction has also In the medium term, the real estate and construction market
been in decline: In Beirut, the number of projects dropped is predicted to pick up again as there is a sustained need
from 37 in 2015 to 28 in 2018.195 of affordable housing due to the growing number of people
Yet, there is hope for growth in the construction industry. living in Lebanon. This will keep retail prices high even as
Through Capital Investment Programme and Investment in sales have slowed down and thus attract investors and
Infrastructure Conference, approx. USD 16 billion will be developers to start new projects.197
invested in Lebanon; a large share of this money will be
used to modernise the country’s infrastructure. This will not
only help municipalities build urgently needed infrastructure
cent of unskilled and 30 per cent of skilled workers were

SKILLS Syrians. Their share has increased drastically: by 2012, the
number of both unskilled and skilled was at 70 per cent. As
Syrians have traditionally worked in the construction sector
for professional workers (engineers and architects), most
in Lebanon due to the fact that the sector is not very popular
are Lebanese (95 per cent in 2010 and 93 per cent in 2012)
among the Lebanese. A baseline survey done in North
Lebanon, Akkar and the Bekaa Valley found that 55 per (see Table 11).198
Table 11: Proportion of Lebanese and Syrian workers per job category in North Lebanon, 2010
YEAR PROFESSIONAL WORKERS SKILLED WORKERS UNSKILLED WORKERS
Lebanese Syrians Lebanese Syrians Lebanese Syrians
2010 95 5 70 30 45 55
2012 93 7 30 70 30 70
Source: ILO (2017): Labour Market Information Review and Analysis. In-focus on North Lebanon.
As Syrians accept work for lower wages, wages of skilled The same survey also identified issues of inadequate
and unskilled workers have decreased nationally; at the training for professionals such as engineers and surveyors.
same time, the predictability and duration of employment is Difficulties identified here lie in the areas of waste
also continually on the decline.199 management (67 per cent), awareness of environmental
Within the construction industry, the fewest difficulties are impact (62 per cent), use of scientific methods (58 per
encountered with management and support staff. A survey by cent), knowledge of green building practices (57 per cent)
UNDP identified the main concern among these employees communication skills (55 per cent), and applied mathematics
to be effective communication, particularly in English (41 (55 per cent). More than half the construction companies
per cent of companies), a lack of specific industry-specific in Lebanon struggle to find professionals with aptitude in
knowledge about siting, waste management (54 per cent of these areas.201
companies) and efficient business practices (38 per cent).200
In general, construction companies complain about a lack in terms of employees being able to solve problems (81 per
of semi-skilled workers, particularly among those that also cent), check and record their work (80 per cent), and select,
work outside construction, such as electricians or plumbers. use and maintain tools (78 per cent).202
Few Lebanese select to work in these trades and prefer to As one of the fields in which Syrian refugees are allowed
continue with a university education after graduating from a to work, construction appears to be a sector well-suited for
technical school. Thus, construction companies like Memo positive impact of donor support programme and minimal
or Zmerly have started their own vocational training centres negative backlash among the Lebanese public. Measures
where they train workers in specialised trades. The UNDP such as cash-for-work programmes, however, should target
survey also revealed that there is a troubling lack of general equal participation among refugees and citizens of host
workplace competencies, with companies reporting problems communities.
Table 12: SWOT analysis, construction sector in Lebanon
• Continued decline in real estate sales and huge drop

in construction permits
• Health and safety issues for workers
• Considerable practical expertise through building • Not a lot of experience in green buildings or energy
boom of the past decade efficiency as well as smart buildings
• High competency in architectural and interior design • Shortage of skilled workers in some professions
• Inflow of funds from Lebanese diaspora for housing (plumbing, welding)
• Existing housing loan scheme by the Central Bank • High dependence on foreign workers for manual
(currently frozen) labour due to poor image of the construction sector
among Lebanese
• Lack of soft and business skills among skilled and
semi-skilled workers
• Planned infrastructure projects financed by CEDRE

• Donor programmes in infrastructure and • Unstable financing situation due to frozen housing
reconstruction loan and renewable energy schemes
• High need for affordable housing due to growing • High number of unsold apartments limits the financial
population capacities of project developers and is a threat to the
• Potential for Lebanese companies to participate in banks which have financed the projects
the rebuilding of Syria; Lebanon might become a • High competition between Lebanese and foreign
hub for specialised trades and engineering in the works might lead to social unrest
reconstruction of Syria • Weak regulatory framework and lengthy judicial
• A large workforce of un- and semi-skilled Syrians procedures
who are willing to work for low wages
Source: Adapted from GIZ (2016) Sector Selection
CREATIVE INDUSTRIES
KEY INDICATORS
5% 400 4.5%
CONTRIBUTION TOTAL ACTIVE TOTAL
TO GDP 203 COMPANIES204 EMPLOYEES
99
The Ministry of Tourism participates in the organisation of
KEY ACTORS festivals. Furthermore, some municipalities also contribute
to the promotion of artistic events.
In European countries, cultural institutions work within a
framework shaped by government strategies. In Lebanon,
by contrast, the government provides little in the way of
GROWTH POTENTIAL AND JOB CREATION
cultural funding. The Lebanese cultural scene depends
mostly on independent individuals and smaller associations Lebanon is a regional hub with regard to design, advertising,
for funding. The main drivers of culture with regard to external architecture, fashion and publishing. There is no common
relations are independent organisations, events and cultural worldwide definition of the specific sub-sectors that
managers funded by private or foreign donors.205 contribute to the creative industries. Figure 27 shows the
The Ministry of Culture is the responsible institution for main sub-sectors for Lebanon.
culture. Other ministries involved include the Ministry of
Social Affairs, which is particularly involved in the craft sector.
Figure 27: Creative industry sub-sectors
DESIGN BASED CULTURAL L I VE C U LT U R E PR OF ESS IONAL

INDUSTRIES TRANSMEDIA C R EAT I VE S E RV ICE S
Audiovisual
Fashion: Performing arts
Communication/
Clothing, Garnements, advertising
Shoes, Jewelry
Publishing
Visual arts
Music
Habitat:
Furniture, Lighting, Interior design,
Home textile, architecture and
Decoration Heritage management construction
Videogames
B to C B to B
Source: European Union (2014): Mapping of Clusters in Cultural and Creative Industries in the Southern Mediterranean.
According to the World Bank, Lebanon’s creative industries regaining and consolidating its role as a regional hub in
have greater growth potential than any comparable sector design, advertising, architecture, fashion, gastronomy and
elsewhere in the Middle East.206 Medculture, the EU publishing  even if the related value chains are often not
technical-assistance unit for culture promotion describes the completely covered and if some important linkages (such as
potential as follows: ‘The strength of the creative industries collaborative work and initiatives, investments, etc.) are still
in Lebanon is rooted in multifaceted cultural influences, weak.’207
deep-rooted private initiative and the country’s privileged The European Union has identified 14 creative clusters in
geographical location. Beirut, for instance, has been Lebanon, along with their associated employment patterns,
export activities and creative comparative advantage (see
Table 13).
Table 13: Main creative clusters identified in Lebanon
CLUSTER #COMPANIES #JOBS TURNOVER EXPORTS COMP. ADVANTAGE
Tradition of creative pro-

Audio-visual and 400 (+100 free- USD7-10
50 entreprises Around 70% files and higher-education
multimedia in beirut lancers/year) million/year
institutions
Dense network Beirut and Lebanese artists’

Contemporary art in Strong export
of artists and n.a. n.a. fame; strong creative net-
Beirut capacity
galleries (25+) works
Arround 15
Copper craft in Tripo- only indirect Strong artistic heritage;
manufacturing Around 50-100 n.a.
li/Qalamoun exports open to new design ideas
workshops
unique design and cultural

13 manufactur- USD 150- no direct ex-
Cutlery in Jezzine Around 50-100 heritage, although design
ing enterprises 200,000/year ports
upgrade is needed
Furniture in USD 15-20 Limited: mostly copies of

Aprox. 50 Aprox. 1,750 Aprox. 20%
Mkalles/Beirut Million / Year classic styles
Approx. 25,000
persons (Syndi-
Heritage value of the man-
cate of Wood and Around USD
ual work of craftspeople,
Furniture in Tripoli Around 2,000 Furniture Industry 300 Million / Aprox. 20%
notably in the woodcarving
in the North), Year
specialty
5,000-8,000 ac-
tive (ALI)
Products blending both Eu-

«Haute couture» in Around USD
ropean and Middle Eastern
Beirut / Bourj Ham- Around 90-100 Around 2,000 50 million / Around 80%
styles; Lebanese design-
moud year
ers/ stylists touch
Around USD Multicultural vision and

High-end habitat More than 80 Around 500 -700
200-250 mil- Around 70% know-how; professionals
design in Beirut design studios direct jobs
lion / year with strong creative talents
Limited be-
Handmade products,
Home textiles in El- Around 20 More than 100 cause of the No direct ex-
closely linked to the local
Fekha / Aarsal workshops jobs low demand ports
cultural heritage identity
at present
Long history and reputation
of Armenian jewellery and
Jewellery in Bourj Around USD the Bourj Hammoud clus-
More than 400 More than 5,000 Around 80%
Hammoud / Beirut 180 million ter; highly skilled craftspeo-
ple; high quality products
products
Extensive know-how, skills
Around
Leather in Bourj Around 100 and reputation; flexibility
More than 1,000 USD 30 mil- Around 5–10%
Hammoud entities in terms of design and
lion / year
production
Marble and granite in
Around 20 At least 50 More than Long reputation (national
Wata Mousseitbeh / Around 1,000
entreprises million / year 50% and regional reference)
Beirut
Diversity of products in
Around 200 Around USD
different languages, avail-
Publishing in Beirut publishing Around 25,000 450 million / 90%
ability of creative authors
houses year
high-quality printing
Traditional clothing Around 15 Around 150 direct Aroud USD 9 Know-how for embroidery
Around 20%
in Saida enterprises jobs in production million / year (elder women)
Source: European Union (2014): Mapping of Clusters in Cultural and Creative Industries in the Southern Mediterranean.
101
On the other hand, good but expensive training is available
SKILLS at private schools and universities (music, theatre, film,
The process of developing skills as well as TVET within design, etc.).208 For crafts and arts, technical know-how is
the sector often derives from sustainable private initiatives. handed down from one generation to the next, but there are
There are little curricula relating to the creative professions significant deficits with regard to marketing and business
at public schools. skills among the traditional crafts people.209
Table 14: SWOT analysis, culture and creative industries in Lebanon210
• Only 0.5 per cent of space in Beirut is accessible to

the public (compared to about 7 per cent in Europe)
- few places where different social and ethnic groups
can meet
• Only a few venues for artists, with the quantity
trending further downward
• Millennium-old artistic tradition as a melting pot of • Centralised cultural offer, with few cinemas and
different cultures theatres outside Beirut
• Lively cultural scene, especially in Beirut • Limited (paying) audience (‘same circle’); high
• Lebanese artists are gaining international attention number of people who cannot afford cultural offers
(e.g., electronic music, fashion) and limited interest among the ‘nouveau riche
• Generally, very good average level of education generation’
(high proportion of educated citizens) • No official government strategy for culture in place;
• 1-2 leading festivals for every artistic and cultural UNESCO Cultural Convention not signed
sector (partly internationalised) • Lack of organised networks and coordination between
• Music, theatre and film the main sectors in the cre- stakeholders in the sector
ative industries • General lack of financing options (< 1 per cent of
• Small but visible designer scene national budget; PayPal, crowdfunding are not
options for raising funds internationally)
• Few offers of BDS services for creative professionals
• Hardly any curricula for creative professions at public
schools (but good offers at expensive private schools)
• Social and cultural acceptance often only after
international recognition
• Culture is not promoted by public sector, but is

politically instrumentalised (religious and ethnic)
• Capital investment programme includes several • Exclusively donor-financed NGO landscape with
projects for cinemas, theatres, art museums and regard to promoting cultural production by refugees
cultural heritage and disadvantaged population groups; lack of
planning horizon for projects due to short-term donor
financing
HEALTH
KEY INDICATORS
7% USD 4
HEALTHCARE BILLION
EXPENDITURE AS MARKET VOLUME
PER CENT OF GDP
refugees. The increasing number of Syrian refugees has
KEY ACTORS overstretched the public healthcare system, leading to an
increase in public expenditures in this area.
The Ministry of Public Health (MoPH) is responsible for
The Syrian refugee crisis has also led to the creation of
health-related topics (policy, regulations) and the Ministry
new government programmes, primarily supported by
of Education and Higher Education is responsible for the
international donors. Since 2014, the European Union has
formal vocational education of nurses and other medical
provided more than EUR 165 million in funding for health
professionals.
projects in Lebanon, becoming the most significant donor in
The mission of the Syndicate of Hospitals is to ensure the
the health sector. More than 200 primary health care centres
provision of high-quality services for all individuals, and to
(overseen by the Public Health Ministry), social development
promote Lebanon as a referral centre for tertiary healthcare
centres (overseen by the Social Affairs Ministry) and public
in the Middle East. The syndicate represents and serves
hospitals have received new equipment, free medicine and
private hospitals and works in partnership with stakeholders
vaccines for children. Health staffers have also received
that are committed to improving and protecting healthcare.
training.215
In addition, there is a large number of private sector
actors like private hospitals or training institutes for health
There are also opportunities in niches of the health sector.
professionals.
Blominvest Bank has concluded that ‘Lebanon should take
advantage of its medical tourism and its status as the best-
GROWTH POTENTIAL AND JOB CREATION performing country in healthcare in the Middle East to boost
its revenues and contributions to GDP.’216 Other potentially
Lebanon’s healthcare market has been growing steadily in lucrative fields in the health sector and the related health-
recent years, in part (but not only) because of the country’s tech field include wellness tourism, medical tourism, nutrition
growing and ageing population. The potential for growth and wellness services, and IT and mobile applications.217
and new jobs exist in both the public and private healthcare
sectors. SKILLS
According to the World Economic Forum’s Global Lebanon’s key advantage is its strong skills base.
Competitiveness Report 2018, Lebanon ranked 32nd Nevertheless, the Lebanese healthcare sector still has
worldwide with regard to the performance of its health a significant shortage of physicians and nurses, as the
system, despite the large influx of Syrian refugees and a population has increased at a much faster rate than the
number of reform needs. supply of medical staffers.218
In recent years, the demand for private training courses has
In May 2018, the Healthcare Access and Quality index risen considerably. Hospitals in Lebanon follow the rules
concluded that the country’s diverse health system provides and regulations of the Ministry of Public Health and are
‘compared to other countries, good value for money.’212 not allowed to hire healthcare practitioners without official
Lebanon has one of the highest doctor-to-population ratios certification and work permits. In practice, most hospitals
in the MENA region (32 doctors per 10,000 individuals). The look for applicants that have an official vocational certificate
country has a total of 130 hospitals.213 However, the system and additional short-term vocational certificates, since the
relies on private healthcare. In 2016, only 13.9 per cent of latter focus on specific areas not covered by official institutes.
hospital beds or short stays were in public hospitals, while The fact that many hospitals have become specialised
86.1 per cent were in private hospitals.214 medical centres and the emergence of private clinics or
The public healthcare sector has shown an ongoing diagnostic centres as well as the rapid growth in aesthetic
need for improvement. Lebanese public hospitals are medicine have resulted in a “talent war” over highly
underequipped and suffer from numerous deficiencies in specialised skilled labour. This has been exacerbated by
terms of maintenance and care quality. They are mainly the brain drain of Lebanon’s medical and administrative staff
used by low-income households, and especially by Syrian heading to the Gulf states.219
103
Table 15: SWOT analysis, culture and creative industries in Lebanon
• Lebanon has one of the MENA region’s highest ra- • Public hospitals are mainly used by low-income
tios of doctors to total population (32 doctors per households, especially Syrian refugees
10,000 residents) • Lebanon’s healthcare sector has a significant
• Good ranking in international benchmarks (‘Com- shortage of physicians and nurses, as the population
pared to other countries, good value for money’) has increased at a much faster rate than the supply of
• Well-developed private healthcare sector medical professionals
• Several donor-run support programmes support the

public healthcare system
• Influx of refugees has overstretched health system
• Wellness tourism, medical tourism, nutrition and
• Public budget constraints
wellness services, IT and mobile applications, and
health-tech entrepreneurship all hold economic
potential
INFORMATION AND COMMUNICATIONS

TECHNOLOGY (ICT)
KEY INDICATORS
2.2% 800 10,000

CONTRIBUTION TOTAL ACTIVE TOTAL
TO GDP (2017) COMPANIES EMPLOYEES
Access to finance is a key enabler for growth within the sec-

KEY ACTORS tor. Seed funding is provided by donors or business-plan
competitions run by entities such as INJAZ or Berytech.
Regulatory and policy-support responsibility for the ICT sec-
Growing companies can receive support from entities such as
tor is distributed across several ministries and governmental
the Kafalat loan-guarantee programme or private investment
organisations, including the Telecom Regulation Authority
funds such as Leap Ventures or Wamda.
and the Office of the Minister of State for Administrative Re-
Accelerators and incubators such as Berytech, UK Lebanon
form.
Tech Hub, Speed and others provide hosting, coaching, link-
On a civil society level, a number of associations such as
ages to investors, access to markets, and business-man-
the Professional Computer Association (PCA) and the Or-
agement training for newly established ICT companies.
der of Engineers lobby for desired regulation and engage in
They promote the required culture and provide a hub for the
collective action. Some of these actors are rather weak; for
creation of events, networks and communities.220
this reason, the Professional Computer Association wants
to create a single association that includes all ICT actors,
uniting them under one umbrella so as to have more power
when speaking to the government.
Figure 28: Ecosystem actors in the ICT sector
Government and Orders, Funds &

Technology Incubators &
Governmental Association & Financal
Organisations Clusters Parts Acceleration
Institutions
Government and
Order of Beirut Digital
governmental AltCity BDL
Engineers District
organisation
Berytech
Ministry of Beirut Creative
Technological BIAT Kafalat
Telecommunications Cluster
Pole
Ministry of
Lebanon
Economy and Level 5 IFC
Soft shore
Trade
Professional
Telecom Regulation
Computer South BIC BeryTech
Authority (TRA)
Assiociation
Association of
OMSAR Lebanese Software UK Tech Hub Wamda
industry
Government Portal
Leap
for information & Speed
Ventures
Forms
Source: UNDP (2016), Mind the Gap.
The sector’s growth is supported by a growing ecosystem

GROWTH POTENTIAL AND JOB CREATION of incubators, coworking space providers, business-plan
competitions and mentor networks, as well a growing ven-
The fast-growing Lebanese ICT sector reached a market ture-capital scene. This development has been fuelled by
size of USD 436.2 million in 2016. In that year, hardware Intermediate Circular 331, issued by the Central Bank in
accounted for 60 per cent of the market, ICT services for August 2014, which allowed Lebanese banks to invest up
31 per cent and software for 9 per cent. The market grew to USD 600 million collectively in local technology-oriented
at a compound annual growth rate (CAGR) of 7 per cent start-ups. Up to 75 per cent of the value of these invest-
during the 2014 – 2016 period, and was predicted to contin- ments was guaranteed by the Central Bank.224 iSME has
ue growing after that period at an even higher annual rate of been another very effective programme for early-stage start-
9.7 per cent.221 In 2017, the sector contributed 2.2.2 per cent ups. However, as of the time of writing, these programmes
of Lebanon’s GPD,222 and employed about 10,000 people in had been ended (iSME) or halted (Circular 331) due to fund-
800 companies in 2016.223 ing issues. The market is currently looking for new financial
mechanisms such as hybrid funds or scholarships for found-
About 95.3 per cent of Lebanon’s software development ers to keep the sector’s entrepreneurial momentum going.
and ICT services companies are located in Beirut or Mount In an interview, IDAL staffers also mentioned that soft-
Lebanon, with only 4.1 per cent in North Lebanon and 0.6 ware-development activities in particular have grown steadi-
per cent in South Lebanon. However, as internet access has ly in Lebanon over the past few years, following stronger
continuously improved, such companies could theoretical- enforcement of intellectual-property rights, a corresponding
ly be located anywhere in the country, a fact that presents reduction in software piracy, and upgrades to the country’s
a huge opportunity for remote regions. As an example, AI ICT infrastructure.225 The sector has benefited from invest-
company Neumann (www.neumann.ai) has its headquarters ment in broadband internet; the fixed broadband penetra-
at 2,000 metres above sea level in the remote Cedars region tion rate reached 25.6 per cent in 2016,226 while the mobile
of North Lebanon.
105
broadband penetration rate was 82 per cent in 2017.227
SKILLS
The domestic market for hardware and software might be
A recent survey conducted by UNDP revealed that Leba-
relatively small, but it is not yet saturated. Demand for com-
non’s ICT sector tends to perform strongly with regard to
puters, notebooks and hybrids has continued to rise steadily
its managerial and support staff. While there are some diffi-
across industries, and the quantity of e-services offered by
culties in this area, no single problem was encountered by
governments, businesses and telecom companies contin-
more than a third of the companies, something that indicates
ues to increase.228 An interviewee from PCA argued that the
a strong match of labour supply and demand in this area.229
government should adopt more e-governance solutions, as
that would provide additional work for the Lebanese IT industry.
One area of relative weakness is the availability of experi-
enced mentors such as serial entrepreneurs to help with the
Moreover, Lebanese ICT companies are very open to ex-
creation of new businesses, or even act as co-founders. As
ternal markets, actively seeking international contracts and
there are not yet many serial entrepreneurs in Lebanon, it
clients. Fully 85 per cent of the sector’s software and devel-
might be necessary to tap into the diaspora or draw on the
opment companies are export-oriented, earning the majority
assistance of experienced people from outside the country.
of their revenues outside Lebanon. A total of 56.7 per cent
A larger number of obstacles are evident with regard to the
export to the Gulf region, 44 per cent to the MENA region
recruitment of skilled software engineers, website devel-
and 34.7 per cent to Europe. Representatives of the compa-
opers, programmers and other technical experts. Interview
nies reported that they could do even a larger share of their
partners at companies indicated that their sector was evolv-
business externally if they had better linkages with potential
ing so fast that academic institutions are unable to keep up.
customers outside Lebanon, along with financial support for
Companies thus say they are prepared to train fresh gradu-
their international marketing. Some interview partners also
ates, who in return earn rather little in the beginning. More-
cited the huge potential in the prospect of rebuilding the Syr-
over, there are a number of initiatives such as SE Factory
ian IT infrastructure, and the need to update the neighbour-
that offer advanced IT training for university graduates. It
ing country’s IT systems.
is harder for companies to find specialised senior staff, for
example in the fields of digital marketing, AI or international
There is a multitude of support programmes targeting the
business development, especially outside Beirut and Mount
ICT sector. Interviewees from comparatively mature compa-
Lebanon. This may in part be due to the brain drain of high-
nies complained that donors ‘waste’ money on companies
skill individuals, as well as the relatively early developmental
that are not serious, and which do not plan to create many
stage of Lebanon’s IT industry.
jobs. They proposed that the international donor community
create strict criteria for the selection of beneficiaries, with
Company representatives also reported some dissatisfac-
an eye towards ensuring long-term success. Such criteria
tion with regard to skilled workers, with 51 per cent indicat-
could include the age of the company, formal registration
ing that their staffers needed to show more initiative, 46 per
status or the number of customers. In addition, interview
cent identifying dependability as an issue, and 43 per cent
partners indicated that it could be helpful to support ecosys-
stating that there was a need for greater commitment to life-
tem players, for example by facilitating knowledge exchange
long learning. ICT company representatives also said that
between German and Lebanese service providers, creating
their staff could benefit from general training in management
mentorship programmes for incubator managers.
practices to improve their personal allocation of resources
(63 per cent), the prioritisation of key tasks (62 per cent) and
their project management skills (60 per cent).230
Table 16: SWOT analysis, ICT sector in Lebanon
• IT-literate, cosmopolitan and multilingual workforce

with good education • High telecommunications costs and lack of fixed high-
• Lebanon well-positioned for regional hub status speed internet connections in some regions
• High and growing penetration of (esp. mobile) • Small size of domestic market
broadband internet • Support ecosystem mainly located in Beirut and
• High percentage of companies is already active in Mount Lebanon
exports • Not yet many serial entrepreneurs able to act as co-
• Growing support ecosystem for ICT start-ups founders and mentors
• Growing financial support for ICT start-ups and • Few hybrid funds
growing companies through public programmes • Companies have to train graduates and new labour-
and VC firms market entrants, as technical skills are lacking
• New regulation on intellectual property • Lack of soft skills among skilled workers
• Reduction of software piracy
• Financial support is drying up, as Circular 331

• ICT is necessary in all sectors, and will play an investment has been slowed by BdL, iSME has ended
important role in rebuilding Syria and Kafalat is frozen (end of 2018)
• Still a large, unsaturated domestic market for ICT • High HR costs, with rising wages needed to keep
hardware, along with a growing domestic market for skilled employees in Lebanon
software development and ICT services • Money is wasted on start-ups deemed ‘not serious’,
• Political will to develop an ICT strategy which are not aiming to create impact and jobs
• ICT companies can be based anywhere in Lebanon, • International competition on export markets, for
including in rural areas example from Indian software programmers
• Significant brain drain
Source: Author and GIZ (2016) Sector selection
TOURISM AND HOSPITALITY

KEY INDICATORS
19% 338,600
TO25% TOTAL
EMPLOYEES
CONTRIBUTION directly and indi-
TO GDP rectly (2016)231
sites and museums for tourism purposes.

KEY ACTORS The Association of Travel and Tourist Agents In Lebanon,
founded in 1949 under the auspices of the Minister of Na-
As the official tourism body for Lebanon, the Ministry of Tour-
tional Economy and Social Affairs, is the national body rep-
ism is entrusted with the following tasks: promoting tourism;
resenting the travel and tourism industry.
regulating, coordinating, and monitoring tourism professions
The Lebanese Hotel Association today represents about
and private companies; promoting and executing tourism in-
417 hotels in Lebanon.
vestment projects; developing archaeological and historical
107
Europeans accounted for 34.4 per cent of total visits in 2017,
GROWTH POTENTIAL AND JOB CREATION with Arab tourists accounting for another 30.2 per cent. Vis-
itors from the Americas accounted for 17.6 per cent of total
Lebanon is a country with important historic and religious tourists, followed by visitors from Asia (7.4 per cent), Africa
sites, a beautiful landscape and a large diaspora that re- (5.9 per cent), and Oceania (4.4 per cent).233
turns to Lebanon every summer. Thus, the tourism industry
plays an important role in the economy. The sector is heavily influenced by Lebanon’s political sit-
Statistics regarding the contribution of the tourism sector to uation. The peak number of annual visitors was reached in
GDP vary, ranging from 19 per cent (2016; World Travel & 2010, before the Syrian crisis, with visits then reaching a
Tourism Council/ Bankmed Research) to 25 per cent (2017; historic low in 2013. Since 2014, the number of tourists has
World Bank). In any case, the contribution is far above the again risen persistently (see Figure 29). The improvement in
world average of 14 per cent, and above that of any other Lebanese political conditions, as well as the growing num-
country in the Middle East.232 These statistics mainly reflect ber of visitors from Gulf countries (although still limited), has
international and domestic travel. There are no statistics had positive effects within the sector. The sector is expected
available for the complete tourism and hospitality sector, to grow further once the Syrian crisis comes to an end.
which would also include restaurants, catering and other re-
lated services related to domestic consumption.
Figure 29: Tourist arrivals
Source: Ministry of Tourism
Despite its annual fluctuations, the tourism and hospitality tors only offering trips to the main touristic sites.236
sector remains a general strong source of job generation, Marketing: Lebanon has an unclear branding strategy. The
accounting for 24 per cent of total employment in Lebanon.234 McKinsey & Company consulting firm has criticised the
However, several providers of restaurant services noted that country’s ‘unfocused efforts in targeting source markets’.237
the domestic market has stagnated in recent years, with Furthermore, Lebanon has no mobile application for tourism
several restaurants having closed since 2016. Training pro- destinations, which makes it more difficult to find attractions
viders state that the hospitality sector is demanding fewer outside Beirut or hotspots such as Baalbek.238
workers than in years past: ‘Hospitality isn’t like it was two
years ago, when it was booming all year round’, said one Other constraints relate to environmental concerns, the pro-
interviewee.235 tection and maintenance of touristic sites, and insufficient
hygiene and quality standards. Regarding the potential of
The tourism sector faces the following challenges: medical tourism, McKinsey has noted that hospitals’ lack of
Touristic infrastructure: There is a lack of hotels in many specialisation within specific medical services has prevent-
attractive areas, for instance along the Lebanon Mountain ed the country from attracting medical tourists.239
Trail and in rural areas such as Dannieh. Furthermore, pub-
lic transportation services are limited, with many tour opera-
Several initiatives have been launched to boost the tourism South America. Several matchmaking events have been
and hospitality sector further. In May 2017, the Ministry of planned with the goal of bringing together foreign tourism
Tourism launched the Visit Lebanon 2017 initiative. This pro- providers with local players.240
gramme is designed to promote Lebanon as a tourism des-
tination to foreign companies and operators in the tourism The capital investment programme (CIP) contains 11 invest-
sector. The initiative has targeted 150 tour operators, event ment projects in the cultural heritage and tourism sector with
organisers, and incentive houses from countries in Asia, a total price tag of USD 264 million as shown in Table 17.
Europe, the Middle East, North Africa, North America and The planned implementation period is 2018 - 2025.
Table 17: Planned investment projects in cultural heritage/ tourism sector
REF. PROJECT ESTIMATED COST (USD)
CH1 National and Public Libraries 15
CH2 Cinema Industry 7
CH3 Theater 7
CH4 Music Industry 15
CH5 Scientific and Educational Centers 18
CH6 Arts Museum 7
CH7 Arts in General 10
CH8 Museum Deposts (Warehouses) 36
CH9 Historic cities 50
CH10 Heritage, Archaeological Sites, and Surroundings 70
CH11 Museums 30
Source: World Bank (2018): Strategic Assessment, A Capital Investment Plan for Lebanon.
The World Bank CIP assessment notes that ‘experience to bination of unrivalled entertainment, immersive culture and
date in Lebanon has shown that supporting knowledge and breathtaking sea views with regional niche offerings in busi-
leveraging heritage assets in cities improved local economic ness and specialised medical tourism’. The 2035 perspec-
development and job creation, especially in secondary and tive argues that the country should be:
tertiary cities in lagging regions. It also enhances the live- • A globally renowned destination for city breaks, with world-
ability for local communities in an inclusive manner and at- class gaming and entertainment offerings
tracts significant private sector investment.’241 • A unique destination for regional and global exhibitions and
conferences
McKinsey’s strategic long-term aspiration for Lebanon envi- • A centre of excellence for specialised medical services
sions ‘a revived Riviera destination offering a unique com- • A sustainable and environmentally friendly tourism destina-
tion.242
109
SKILLS
Regarding the issue of skills, the GIZ sectoral study ‘Tech- not meet the standards required by the market.243
nical Assistance for a More Practice Oriented VTE in Leba- In addition to the skilled workers in management and mid-
non’ concludes that the sector has a large pool of skilled and dle-management positions, the hospitality sector attracts a
multilingual labour force who receive education and training large number of low-skilled and semi-skilled workers, espe-
in more than 45 hospitality schools, technical institutes, uni- cially in the areas of cleaning and kitchen support. Accord-
versities, more than in any other Arab country. There is still a ing to restaurant owners interviewed for this study, it is rare
shortage of qualified personnel because of the high emigra- to find Lebanese working in low-skill kitchen jobs; these are
tion rates towards the Gulf where salaries offered are higher, mainly done by Syrians and Palestinians.244
and because some education and training programmes do
Table 18: SWOT analysis, tourism and hospitality sector in Lebanon
• High operating costs

• Important historic and religious sites and beautiful • Lack of hotels in many attractive areas
landscapes • Limited public transport
• Year-round tourism possible • Unclear branding strategy and ‘unfocused efforts in
• Niche for medical and wellness tourism targeting source markets’
• Multilingual workforce • No mobile application for tourism destinations
• Insufficient hygiene and quality standards
• Visit Lebanon 2017 initiative • Sector is heavily influenced by broader political

• 11 investment projects ongoing in the cultural situation within Lebanon
heritage and tourism sector, with total funding of • Environmental concerns
USD 264 million • Insufficient protection and maintenance of tourism
• Lebanese cuisine is experiencing a worldwide boom sites
and can be used as an ambassador of the country • Migration of skilled workers to Gulf states
111
RECOMMENDATIONS
113
RECOMMENDATIONS
The recommendations in this chapter are based on the job-creation constraints and opportunities identified in each part of
this ELMA study. Thus, they take into account framework conditions, labour demand, labour supply, and the need to match
labour demand and supply. There are no sector-specific recommendations.
The recommendations are intended to support international donor organisations as well as public- and private sector insti-
tutions in Lebanon that are engaged in analysing, preparing and adapting development measures designed to improve the
Lebanese employment environment.
The recommendations contain a variety of approaches targeting the following levels:

• Macro: Interventions that address and support public stakeholders (especially ministries and governmental institutions)
• Meso: Interventions that address and support stakeholders in public-private and private institutions that in turn function
as intermediaries between companies and or the population on the one hand, and governmental institutions on the other
(e.g., chambers of commerce, business and sectoral associations, regional-development agencies, training institutes,
universities and other ecosystem stakeholders)
• Micro: Interventions that address and support companies, entrepreneurs, graduates and the general population (espe-
cially with regard to identified training needs and job-creation potential)
All approaches are furthermore categorised as having either direct or indirect impact on employment creation. A direct im-
pact means that the measures themselves create employment (e.g., infrastructure investments, matching and integration
in companies). Most of the proposed approaches are indirect measures that facilitate the creation of jobs by improving
framework conditions, enhancing skills or improving the competitiveness of the private sector.
One additional category is the time scale over which the strategies are expected to have an impact:
• Short term: One to two years to create potential employment effects
• Medium term: Three to five years to create potential employment effect
• Long term: More than five years to create potential employment effects
Many of the structural challenges associated with framework conditions require long-term approaches, while develop-
ment projects supported by international donors normally have a duration of only two to four years. For this reason, the
focus of the recommendations offered here lies on short and medium-term approaches.
Each recommendation sub-chapter contains a long-list of recommendations and some approaches to be presented in de-
tail. The prioritized recommendations were selected based on the following five main criteria:
• Short-term impact: The potential for concrete results in a relatively short period of time following the recommendation’s
implementation.
• Ease of implementation: The ease of implementing the actions entailed by the recommendation, based on actor avail-
ability, time and resource availability, co-operation among the different actors involved, etc.
• Actors involved: The efficiency and expected contribution of the actors involved in the implementation, as well as likeli-
hood that they will be able to work with one another productively.
• Relevance to the current situation: The relevance of the recommendation given Lebanon’s present socio-economic
circumstances.
• Sustainability: The ease of sustaining the efforts associated with the recommendation over the longer term, and the
ability to maintain momentum in future years.
RECOMMENDATIONS: FRAMEWORK CONDITIONS

The currently complex political situation in Lebanon limits the options available to international development projects with
regard to supporting the country in improving framework conditions Nevertheless, there are a number of opportunities for
international development projects to strengthening the capacity of implementing departments and agencies, strengthening
co-operation between public institutions and the private sector, and especially by supporting the implementation of planned
infrastructure projects. The long list of recommendations is mentioned below, the prioritized recommendations are elaborated
below the table.
INTERVENTION IMPACT ON TIME
LEVEL EMPLOYMENT PERSPECTIVE
Infrastructure
Relevant ministries Provide technical assistance for

(e.g. transport, infrastructure projects (capacity- Short/medium
Macro/micro Direct/indirect
economy and trade, building & implementation support for term
etc.), municipalities CIP).
Promote collaboration with other

donors doing large infrastructure
projects (linking private sector All levels Indirect Medium term
programmes with infrastructure
projects).
Relevant ministries
Finance and feasibility, environmental
(e.g. transport,
& social studies for large infrastructure Macro/meso Indirect Medium term
economy and trade
projects under CEDAR/CIP.
etc.), municipalities
Institutional framework
Organise and finance sector-specific

Macro/meso Indirect Medium term
public-private dialogues.
Relevant ministries
Provide training, advice and general
(e.g. transport,
capacity-building services to ministries Macro Indirect Long term
economy and trade,
and state agencies.
etc.)
Support policymakers and public

Public institutions like
institutions in improving the business Macro Indirect Long term
IDAL
environment.
Economic policy and strategies
Relevant ministries
Support ministries in implementing
(e.g. economy and
existing strategies (SME, TVET, future Macro Indirect Medium term
trade, education and
sectoral strategies).
higher education)
INFRASTRUCTURE tional development projects can finance and support the

conduct of feasibility, environmental and social studies for
large infrastructure projects. Specifically, support could be
One of the most promising opportunities in the coming years provided for analysis studying issues such as employment
is the Capital Investment Programme, in conjunction with impact, decent work conditions and inclusive approaches
agreements made during the CEDAR conference. Over the (e.g., inclusion of low-skilled workers and marginalised pop-
next 10 years, these entail financing of up to a total of USD ulations, and the creation of opportunities for women and
16 billion, spread across 280 infrastructure projects. Even youth). In such a case, it would be vital to collaborate closely
if the extent to which all planned projects will be financed with public institutions and other donor organisations.
and implemented remains unclear, there will be a significant A further potential approach could be to align infrastructure
need for support beyond simple project financing. Interna-
115
projects with existing or future support and skills-develop- bers of commerce, and various business associations. In
ment programmes operated by the private sector. For exam- the past, ECOSOC has been successful in effectively cre-
ple, the McKinsey strategy proposes that industry parks and ating space for general dialogue between state institutions
special economic zones (physical clusters) be combined and key civil society actors.
with virtual clusters.245 While the CIP supports investments Lebanon shows significant gaps in support structures, es-
in physical infrastructure, international development projects pecially at the sectoral level. One potential approach in
could provide complementary support to creative, technol- remedying this could be the creation of sectoral committees
ogy and outsourcing companies both inside and outside of tasked with coordinating and liaising with relevant public
existing or planned industrial zones or knowledge parks. sector institutes and local authorities such as municipali-
ties. The creation of such structures could be focused within
The implementation of large investment projects requires sectors with significant employment potential, such as agro-
specific skills on the national, regional and local levels (e.g. food processing, health, construction, tourism and hospitali-
urban planning, impact measurement, monitoring, links to ty, ICT, and the creative industries.
employment programmes etc.). International development
projects could provide particular support to stakeholders We recommend the following steps be taken:
in public institutions, helping to strengthen their capacities • Existing coordination mechanisms in selected sectors with
through the provision of training and advisory services. significant employment potential should be analysed.
The following steps are recommended: • Relevant stakeholders should be identified, and sectoral
• Selected investment projects should be identified based on needs that could be addressed using public-private coordi-
employment potential. nation mechanisms should be specified.
• Potential linkages between infrastructure projects and pri- • Round tables and regular meetings should be held, fea-
vate sector skills development programmes should be analysed. turing presentations of good practices from other countries.
• Support needs and skills gaps should be identified (as-
sessment of capacity-development needs).
• Coordination committees should be established, with the
inclusion of public sector institutes and donor organisations INVESTMENT CLIMATE AND BUSINESS EN-
(e.g., investment development working group). VIRONMENT
Improving Lebanon’s general investment climate and the
business environment is a comprehensive and long-term
SECTOR-SPECIFIC PUBLIC-PRIVATE task that needs to be tackled on all levels. The country’s
DIALOGUE poor performance in international benchmark surveys is
linked to a broad range of issues, including a lack of good
Many of the publications consulted during this study, along governance, difficult-to-navigate bureaucracy, insufficient
with many statements from interview partners, indicated labour regulations, a lack of judicial reform, high levels of
that co-operation between the public and private sectors public debt and many more such factors (see Chapter 2).
is currently weak. There are numerous reasons for this;
deep-rooted political factors certainly make a contribution, During the ELMA stakeholder workshop, decentralisation
but structural deficits are also evident, as co-operation struc- and support for regionalisation were identified as potential
tures have not been defined or developed in the past. Fur- approaches to which international development projects
thermore, the private sector shows a general mistrust to- could contribute over the medium term. A shift to a focus
wards public institutions. As a result, the private sector has outside the major cities could contribute to improving re-
started to build parallel support structures (e.g., in the TVET gional and local business environments, while encouraging
field) that are often not coordinated with national strategies more equitable development in rural areas. The following
or public offers. approaches were identified as promising:
Improved coordination between the private sector, civil so- • Facilitating the decentralisation of decision-making on the
ciety and public institutions could contribute to the devel- issues of regional economic development and employment
opment of support programmes that are better oriented to- creation.
wards private sector needs and could  over the medium and • Empowering municipalities to take an active role in the de-
long term – contribute to employment creation. International velopment of employment opportunities in their regions.
development organisations could play a role as independent • Providing technical support to municipalities, helping them
mediators, helping to cultivate trust between the partners. to better understand the job market and assisting them in
the development of local development and employment
A multi-stakeholder workshop for this ELMA study in Janu- strategies.
ary 2019 identified a number of potential actors in this pro- • Supporting regional and local sectoral committees (public
cess, including the NEO, the Economic and Social Council sector, private sector, civil society) as they identify and ad-
(ECOSOC), the Higher Council for Privatisation, the cham- dress development obstacles at the regional and local level.
RECOMMENDATIONS:
DEMAND SIDE
The demand side offers the greatest potential for additional job creation. Lebanon’s job-creation problem is mainly a de-
mand-side problem, as economic growth alone does not currently create enough jobs to support the growing workforce. The
private sector is therefore the key to comprehensive employment generation, and to the creation of sustainable and decent
job opportunities. Even there are currently few public or public-private business-development actors (meso structure), there
are a number of stakeholders at the national, regional and local levels with which international development projects could
partner. The long list of recommendations is mentioned below, the prioritized recommendations are elaborated below the
table.
INTERVENTION TIME
ACTOR POTENTIAL APPROACH IMPACT ON
LEVEL PERSPECTIVE
Employment potential in MSME
Support selected value chain ap-

Chambers of proaches (increasing the quality and
commerce, training quantity of products and companies, Meso/micro Indirect Medium term
providers, USAID especially in rural areas; coordination
with other donors such as USAID).
Chambers of com-
Support cluster development in
merce, business
productive sectors (cluster strategies,
associations, uni- Medium term Indirect Medium term
cluster management, cluster services,
versities, consulting
international linkages).
companies
Strengthen the capacities of public

and private business-development
International donor
actors, in part through management- Meso Indirect Medium/long term
organisations
skills training programmes (detailed
actor analysis necessary).
Ministry of Envi- Create support programmes in the

ronment, Ministry areas of resource efficiency, cleaner
of Economy and production, recycling and waste man- Meso/micro Indirect Medium term
Trade, municipal- agement (green economy approach-
ities es).
Entrepreneurship promotion
Incubators,
Create incubation programmes for
accelerators,
start-ups in selected sectors (e.g., IT,
universities,
health and agri-business, especially in Meso/micro Direct Medium term
municipalities,
areas outside of Beirut), offer support
business
within the start-up ecosystem.
associations
Training providers, Offer financial-readiness support

banks, financial for growing companies, and links to Micro Indirect Long term
institutes international financing sources.
Support the development of

Training providers management skills for necessity Micro Indirect Medium term
entrepreneurs.
117
Export and trade promotion
Help strengthen the quality-
Chambers of assurance infrastructure in selected
Commerce. export-oriented sectors, especially
Meso/micro Indirect Medium term
Sectoral outside Beirut and Mount Lebanon
associations (e.g., metrology, standardisation,
accreditation, testing and certification).
Help strengthen export and
IDAL investment agencies’ capacities (e.g., Macro/meso Indirect Medium term
IDAL).
IDAL, Chambers Promote participation in international

of Commerce, trade fairs and the creation of Meso/micro Indirect Short term
Associations of Lebanese product branding.
Lebanese Industrialists
Customs authority, Provide advice on improving the

Ministry of transparency and efficiency of
Macro/meso Indirect Medium term
Economy and customs procedures, thus reducing
Trade technical barriers to trade.
Employment in the informal sector
Support the implementation of the

planned law giving companies Macro/ meso Indirect Medium term
incentives to formalise.
Provide management-skills training for

Training providers selected informal sectors with growth Macro/meso Indirect Medium term
potential.
Support co-operatives in rural areas

Short/medium
in areas such as business creation, Micro Indirect
term
capacity-building.
Microfinance Provide financial-readiness

Institutes, Training training and links to micro-finance Meso/Micro Indirect Medium term
provider programmes.
Drawing from the comprehensive list of potential approaches, we present the following points based on priorities discussed
in the ELMA stakeholder workshop.
VALUE CHAIN APPROACHES

Value chain development is an economic-development
concept that helps to develop the system around a certain in place (e.g., the CCIB food lab), but that there is a lack
product or service. A value chain is defined by a particular of coordination between the actors, a lack of incentives to
product and its markets, with the community of value comply with national-level quality standards and a lack of
chain operators including all enterprises that add value analytical research on value chain actors.
to the product on its way from raw material to the final We thus propose the following potential measures:
consumer. Value chain development aims at strengthening • Analyse existing support and coordination programmes
the functioning of markets, improving access to jobs and provided by other donors. (e.g., USAID).
influencing the distributive outcome of market processes.246 • Conduct a comprehensive value chain analysis, studying
The value chains of the agro-food processing sector were companies and actors along the value chain (e.g., via the
described by most stakeholders interviewed as being a GIZ Tool Value Links).
promising target for further MSME-development and job- • Map existing sub-sectors and create priorities for potential
creation efforts. Participants in the stakeholder workshop areas of intervention.
indicated that many such support measures are already • Provide support to selected value chain approaches (e.g.,
increasing the quality and quantity of products and compa- McKinsey has identified the presence of further value chain
nies, especially in rural areas. development potential in the construction industry; for ex-
• Combine other activities with export-promotion measures ample, an end to the Syrian crisis would represent con-
(see below). siderable opportunity for the industrial-construction sector.
• Provide support for the enforcement of national laws, quali- Considerable potential lies in the centralised production of
ty-control regulations and product testing in accordance with construction parts using automated and optimised indus-
international (EU) standards. trial technologies, which would in turn allow for integration
• Help develop an awareness campaign, targeting compa- across the construction value chain. The development of a
nies and public institutes, promoting the importance and special industrial-construction zone could spark the creation
added value of quality-control systems. of medium- and high-skill jobs across Lebanon and Syria.247
• Support the transformation and transition of agricultural However, further analysis is needed to define potential de-
cultivation towards higher-value crops (see McKinsey strat- velopment interventions associated with these approaches.
egy proposal).
START-UP SUPPORT • Help companies in other regions and municipalities access

services currently existing in Beirut (e.g., incubators, ven-
PROGRAMMES ture-capital funds).
• Provide support to regional and local start-up ecosystems
While Beirut already has a growing start-up ecosystem, in selected areas (e.g., by helping municipalities, start-ups,
there is considerable potential for the creation of start-up corporations and start-up support providers to connect with
support programmes in areas outside of the city. We pro- one another).
pose the following potential measures: • Promote the creation of an umbrella organisation that can
• Provide training, mentoring and financial support to start- coordinate actors across the start-up ecosystem, and which
ups in selected sectors outside of Beirut (e.g., IT, health, can provide advice to incubators and other actors.
agri-business).
EXPORT PROMOTION on value chains above). In its review of the country’s ex-
port-promotion efforts, McKinsey concluded that the ‘export
promotion ecosystem is fragmented, with no clear roles and
The experts interviewed for this report were unanimous in
responsibilities.’248
identifying export growth as one of the main sources for fu-
We propose the following potential measures:
ture job creation. Currently, 58 per cent of jobs in Lebanon
• Provide capacity-building measures for selected institu-
are provided by firms that export 10 per cent or more of their
tions and stakeholders (e.g., IDAL, Ministry of Economy,
output. Future growth in both the agricultural and industrial
Central Bank/Kafalat, chambers of commerce, sectoral
sectors will need to be export-driven. This requires efforts
business associations).
to ensure that SMEs are ready to engage in exporting, as
• Help facilitate the coordination of export-promotion activities.
well as measures enhancing export-promotion activities cur-
• Identify sector-specific export-market potentials, for in-
rently conducted by public and private institutions or other
stance by performing gap analyses (studying the gap between
stakeholders.
export-market requirements and SMEs’ export readiness).
• Help companies modernise their branding and marketing con-
Export-readiness approaches entail helping companies to
fulfil the product and quality standards needed to enter ex- cepts, for example through participation in international fairs.
port markets (a product-side approach; see also paragraph • Provide advice on best export-promotion practices.
119
INFORMAL SECTOR (needs to be done by the Central Bank), and work to place
micro-finance institutions on a more stable financial footing
(macro/meso levels).
Accounting for 50 per cent of the labour force, the informal
• Provide financial-readiness training to informal compa-
sector plays an important role. The large size of the informal
nies, offer procedural support for companies wishing to for-
sector is partially due to excessive regulatory burdens with-
malise, and help companies gain access to micro-finance
in the labour market and the low quality of institutions, but
programmes (micro level).
also to the state’s failure to deliver basic services, and the
• Provide management-skills training for companies pursu-
high number of refugees and foreign workers who lack resi-
ing selected business models in sectors with growth poten-
dency or work permits. Most informal businesses engage in
tial (based on an analysis of business models and including
small-scale retail trade, personal services or vehicle-repair
support programmes specifically targeting women in gen-
services. Scaling-up opportunities are limited due to busi-
der-relevant businesses).
ness-model constraints and these entities’ limited access to
• Provide co-operatives in rural areas with assistance in
finance.
starting companies and help them build capacities more
generally.
We offer the following recommendations with regard to en-
hancing employment creation in the informal sector:
The World Bank has proposed holistic support programmes
• Support the implementation of the planned law providing
that combine interventions aimed at improving access to
companies with incentives to formalise (macro level).
finance, reducing taxes and simplifying tax procedures for
• Improve regulation of the country’s micro-finance sector
small firms.
RECOMMENDATIONS: SUPPLY SIDE

Measures aimed at improving supply-side labour-market conditions, such as education and training programmes,
should focus on helping workers take advantage of the job opportunities that are actually available. This is a challenge
in Lebanon, where there is limited and incomplete information about labour-market trends, and where educational and
training institutions function as insular entities. Participation in education and training programmes may also be hampered
by cultural perceptions of what is considered appropriate work for different groups. All concerned stakeholders, whether in
the public, private or civil society sector, must coordinate their efforts in order to address these challenges. The long list of
recommendations is mentioned below, the prioritized recommendations are elaborated below the table.
INTERVENTION IMPACT ON TIME

LEVEL EMPLOYMENT PERSPECTIVE
Higher education
Higher-education
Higher-education institutions, grant
institutions, grant Micro Indirect Medium term
providers
providers
Support cluster development in produc-

Higher-education
tive sectors (cluster strategies, cluster
institutions, private Micro/meso Indirect Medium term
management, cluster services, interna-
sector employers
tional linkages).
Higher-education Establish links with private sector

institutions, private entities, encourage job fairs, highlight
Micro Direct Short term
sector organisations,success stories and promote internships
employers as part of the university curriculum.
Establish or support networks providing

Private sector, mentoring and leadership training, with
Meso Indirect Medium term
INGOs particular focus on helping women grad-
uates achieve managerial positions.
Vocational training
Support the work of the Higher Coun-

MEHE, private
cil for TVET with capacity building and Macro Indirect Long term
sector and unions
exchange of best practices.
Create or fund awareness-raising

programmes regarding the benefits and Medium/long
MEHE, INGOs Meso Indirect
potential of vocational training, targeting term
families and employers.
Improve resource-allocation efficiencies

MEHE/Director- in public TVET programmes by closing
Medium/long
ate of Vocational down schools/classes with few students, Meso Indirect
term
Education and reallocating resources to the pur-
chase of practice materials.
Help establish closer links between

TVET programmes and the private
MEHE and private
sector, especially large companies, so Meso Direct Medium term
sector
as to ensure students receive practical
training and placement after graduation.
Fund, hire and train career and

academic counsellors within schools
MEHE, INGOs and other institutions to ensure that
Micro/meso Indirect Medium term
and donors graduates are matched with open jobs
or given the support needed to start their
own businesses.
Integrate soft skills and life skills training Medium/long

INGOS and MEHE Meso Indirect
into TVET courses. term
Provide support in training ‘master

trainers’ within companies, to ensure
INGOS and that vocational trainees receive Medium/long
Micro/meso Indirect
private sector the right guidance, leadership and term
training content during apprentices or
internships.
Work with private sector to ensure that
short, non-formal training programmes
INGOs, NGOs, provided by (i)NGOs are guided by Medium/long
Micro/meso Direct
private sector labour-market demand, thus ensuring term
relevance and facilitating trainee
placement.
Include funding for tracer studies
Donors, INGOs, in donor programmes, enabling Medium/long
Meso Indirect
NGOS beneficiaries’ medium/long-term success term
to be tracked.
Support the implementation of the

Short/medium
INGOs measures mentioned in the TVET Micro/meso/ macro Direct/indirect
long term
strategy.
Life and soft skills training
MEHE, higher-
education and Include soft and life skills in training
TVET training programmes and curricula.
institutions
121
Provide mentoring services after the
INGOs, private sector, conclusion of training programmes,
associations especially for youth and women from
vulnerable backgrounds.
Include digital skills in programmes for
INGOs Micro Indirect Medium term
youth from vulnerable backgrounds.
Skilled emigration
Create programmes training company

employees to take on middle-manage-
INGOs and private sector Micro Indirect Long term
ment tasks and provide incentives to
stay in Lebanon
Create programmes creating incen-
tives for diaspora members to return
Private sector and NGOs,
and found/co-found companies, or Miro/meso Indirect Long term
Associations
otherwise engage in local employment
creation.
Set up mechanism to channel
INGOs remittances into productive investment Meso/macro Indirect Long term
as well as consumption.
Labour immigration
Train refugees and place them

INGOs, Vocational in the sectors in which they are Short/medium
Micro Direct
Training Centres allowed to work (only comprehensive term
programmes).
Provide funding for work programmes
Donors, INGOs, NGOs with a balanced participation of Micro Direct Short term
refugees and native Lebanese.
Create programmes to ensure good

INGOs, Associations and labour conditions for foreign and Micro/meso/ Medium/long
Indirect
Unions refugee workers; create awareness macro term
among workers about their rights.
Cultural perception of jobs and work
Create society-wide awareness-

raising programme focusing on
breadth of well-remunerated existing
Education institutions,
and future jobs. Make clear that Micro/macro Indirect Long term
INGOs and MEHE
professions beyond law, medicine
and engineering are relevant to the
country and society.
Work to increase labour-market
transparency, so that available
Private sector, NEO positions in areas such as technical Meso Indirect Medium term
professions are more visible (see job
search).
MEHE, education Promote idea of lifelong learning and

Micro/macro Indirect Long term
institutions and NGOs career change.
Create comprehensive vocational and

life/soft skills training programmes
and mentorship services specifically Short/medium
INGOs Micro Direct
targeting women, especially those term
who have never received or had
access to training.
Provide career guidance that
Educational institutions,
encourages non-traditional career Micro Direct Short term
INGOs and private sector
paths for women.
Support measures that enable

women at all stages of life and in all
areas of Lebanon to participate in
Medium/long
Private sector and INGOs the labour market; this must include Meso Indirect
term
the provision of safe transportation,
child care services and safe working
environments.
Advocate for greater participation

of women at the managerial level,
INGOs, Associations and
both within certain professions and Macro Indirect Long term
Unions
within public services and political
organisations.
efforts from actors in the public, private and civil society sec-
HIGHER EDUCATION tors. In this regard, participants in the ELMA workshop made
the following recommendations:
In order to properly link higher-education outcomes to la-
bour-market opportunities, a career-guidance strategy • The efficiency of the public TVET system should be en-
should be implemented based on robust labour-market in- hanced by ensuring that funds are allocated to necessary
formation. To this end, we recommend the following specific tasks, including the provision of training materials, and by
interventions: minimising expenditure in costly areas that achieve limited
results. This would require the DGVTE to review the current
• A career-guidance strategy should be developed based on organisation and structure of TVET, and to consolidate the
input from the private sector. While this process can be led number of TVET institutions. ELMA workshop participants
by the Ministry of Labour, it will require the establishment of also recommended reducing the number of TVET schools
reliable private sector input channels. International organi- from 158 to 50, to better reflect the actual number of stu-
sations could provide technical support in the development dents. The DGVTE could additionally establish regulations
of this strategy, as well as capacity-building support for the ensuring that classes have a minimum of 15 students. In-
different parties involved (including educational institutions) ternational organisations could provide technical support in
during implementation. The government, mainly MEHE, achieving this strategy.
should formalise the strategy and ensure that it is communi- • Awareness campaigns regarding the importance and po-
cated to all relevant stakeholders. tential of TVET should be implemented. These should be
• Policies and practices must ensure that career-guidance targeted campaigns. Messages directed at employers,
services take the best interests and needs both of students should underscore the importance of decent salaries and
and the national economy into consideration. Furnished working conditions to make technical jobs more attractive;
with information and advice from the private sector, the NEO those directed at families and their children should highlight
could be expanded into a youth job centre that works di- the importance and potential of technical education as com-
rectly with schools and universities, building upon the enti- pared to higher education, whether for employment in Leb-
ty’s current youth-employment programme. Universities and anon or abroad. Specific success stories could be selected
training institutions could hold regular job conferences and and highlighted. This could be implemented by the DGVTE,
fairs that help new labour-market entrants make considered with financial and technical support from international organ-
career choices. MEHE could ensure that these measures isations.
are enforced in all educational institutions. • TVET institutions and providers should provide academic
• Universities should introduce quotas when accepting stu- and career counselling. While the work of the TVET Council,
dents, especially in highly saturated disciples. This could be a tripartite institution, could ensure that career-counselling
enforced through government directives and the creation of programmes are furnished with proper strategies and robust
nationwide standards by MEHE. In the process, students information, the creation of a nationwide TVET job centre
could also be re-directed to careers with greater demand for could also support this endeavour.
labour and provided with incentives to continue in these ar- • The private sector should take a more active role in the
eas with targeted grants and scholarships. This could be im- development of TVET curricula and programmes. To facil-
plemented under the joint guidance of NEO and the private itate this, sectoral and technical skills committees should
sector, based on the career-guidance strategy and working be created; these could support TVET-promotion efforts by
through NEO’s Youth Job Centre. providing advice, defining needs and raising awareness.
ECOSOC could serve as the lead actor in this process,
Both the quality and the public perception of vocational edu- providing a platform for collaboration between the private,
cation and training need to be addressed in order to increase public and civil society sectors. The private sector should
demand for such services, and to ensure that graduates will also be directly involved in developing a TVET certification
be competent actors in the labour market. This will require system based on actual labour-market needs.
123
LIFE SKILLS AND SOFT SKILLS
Employers have identified a lack of life and soft skills as an important labour-market issue. for this reason, we recommend
that both types of training should be incorporated into TVET curricula. International organisations could provide insights
regarding these skills and best practices when teaching them. The DGVTE should ensure that curriculum of this kind be-
comes compulsory in all TVET programmes.
RECOMMENDATIONS: LABOUR-MARKET MATCHING

The recommendations for matching demand and supply within the labour market primarily focus on gathering labour-
market information, making the market more transparent, distributing this information to students and their parents,
and supporting companies in improving their human-resources practices. In addition, labour rights and wages could be
enhanced by strengthening the intermediary actors, and by expanding societal awareness regarding these rights. The
long list of recommendations is mentioned below, the prioritized recommendations are elaborated below the table.
ACTOR POTENTIAL APPROACH IMPACT ON TIME
Labour-market information
Establish a regularly updated and centralised

labour-market information system at a public
NEO (lead), institution (NEO or MoL). This should contain key
Macro Indirect Medium term
private sector quantitative statistics such as employment rates
by age group, gender and sector, as well as
unemployment rates.
Create a roundtable process to discuss

qualitative aspects of the labour market.
Participants should include public and private
NEO (lead),
sector representatives, HR service providers, Meso Indirect Medium term
ECOSOC
TVET centres and NGOs. Key goals would
be to develop qualitative data and initiate
collaboration.
Career guidance
Create a career redirection and skills-matching

system for job seekers who are unable to find a
job in the profession for which they are trained,
NEO Meso Direct Short term
or who are returning to Lebanon after some time
abroad. This should be part of NEO’s service
portfolio.
Provide support for volunteer job placements.

Direct for
NGOs, Currently, the market for volunteer jobs lacks
volunteering;
international donor transparency. This would help students, new Micro Short term
indirect for
organisations graduates and others gain relevant work
jobs
experience.
Job search
Encourage companies, organisations and

placement/ recruiting agencies to advertise
open positions with NEO, thus creating a central
NEO, private platform listing all available jobs. Ask companies
Meso/macro Indirect Short term
companies what incentives would be necessary to persuade
them to use NEO’s services and platform. A
platform of this kind would make the job market
more transparent.
Support initiatives (internet portals, fairs or

NGOs, markets) that linking freelancers with potential
private sector, clients. Such services are already available in
Meso Indirect Short term
international donor the ICT sector; similar programmes could be
organisations carried out in other sectors such as the creative
industries, handicrafts, etc.
Recruiting and retaining staff
Create awareness-raising programmes

highlighting the benefits deriving from
investment in training and open corporate
Chambers of
cultures, and which provide information on Micro/macro Indirect Long term
commerce, ALI
future job opportunities (modern workplace
tasks and organisation, digitalisation, decline of
hierarchies, etc.)
Provide companies of all sizes with training

on good recruiting and employee-retention
International donor
practices. Provide MSMEs in particular with
organisations
support in establishing basic human-resources Micro Indirect Medium term
(lead), chambers
structures and processes that meet modern
of commerce, ALI
workplace requirements, for example by
distributing responsibilities across teams.
Wages and collective bargaining
International donor Provide unions with capacity-building training,

organisations, with the goal of helping them recover a Meso Indirect Long term
ECOSOC meaningful collective-bargaining role.
Collaborate with unions on other labour-market

International donor
topics. This could include awareness-raising
organisations, ILO, Meso Indirect Long term
campaigns focusing on the importance of good
NGOs
labour conditions.
Social protection
Support the government in its efforts to reform

International donor
the National Social Security Fund, so as to Macro Indirect Long term
organisations
provide broader and better protection.
125
This system should provide job seekers and employers with
ESTABLISH A LABOUR-MARKET incentives to register. Every job-seeker should receive job
INFORMATION SYSTEM search and placement support. Employers would also need
to participate in the survey and provide specific information
As current labour-market data is not actively tracked on an on their current employee. To provide employers with an
ongoing basis, it is difficult to ensure that labour-market incentive to participate, they could be provided with training
policies and activities accurately reflect current needs. Many on human-resources management best practices (see
interview partners cited this dearth of good information below) or given preferred treatment with regard to labour
as an underlying factor in the inefficacy of labour-market permits or other ministry services. Alternately, the provision
interventions and the mismatch between skills and labour- of such information could be made legally obligatory, as is
market needs. the case in some other countries.
Thus, Lebanon needs a public, centralised system that International experts could provide Lebanese institutions
collects and publishes up-to-date labour-market data. Key with support in designing and establishing such a system.
indicators should include the size of the economically active International donor organisations could help fund the
population; employment rates by sector, gender and age experts’ participation, while also covering operating costs
groups; and unemployment rates. The actors best suited for a limited time.
to this task are the National Employment Office and the
Ministry of Labour, as they are in charge of work permits,
labour-market policies, and efforts to match labour demand
and supply more generally.
ESTABLISH A CENTRAL PORTAL FOR JOB TRAIN COMPANIES IN RECRUITING,

ADVERTISEMENTS AND SEARCHES RETENTION PRACTICES AND LABOUR LAW
Lebanon has no primary platform through which companies Even the best labour-market improvement measures will
look for employees and job seekers look for vacancies. Most be unsustainable unless companies and other employers
recruiting is still informal, and the job market is therefore change their recruiting and employee-retention practices.
very non-transparent.
Therefore, companies of all sizes should be trained in
Lebanon thus needs a functional central platform through good recruiting and staff-retention practices. This would
which all such vacancies are registered. The platform show employers how to search for good employees, and
should contain jobs of all kinds, ranging from entry level to how to create an inspiring and desirable work environment.
senior management positions. The National Employment In addition, MSMEs in particular should be shown how to
Office would be the logical organisation to host this platform, establish basic human-resources management structures
but all companies, organisations and placement/recruiting and up to date processes. Companies need to understand
agencies should contribute to it. The NEO currently has an the long-term value of these practices, and see the benefits
online database, but it does not operate properly. associated with investing in staff retention.
The new platform should be available online and as an app, The Association of Lebanese Industrialists, the various
but the content should be also accessible in the NEO offices, chambers of commerce, and sector-specific syndicates
enabling some guidance from the organisation’s staff. The and associations would all be natural partners for this
NEO could also help employers find the right employees kind of training. International HR experts could also train
using the database of registered job seekers. In addition trainers currently working within existing Lebanese training
to helping match applicants with jobs, this would also help institutions, helping to put these topics on the agendas of
gather critical labour-market data, particularly regarding the business-services providers.
characteristics of open jobs and job seekers.
International donor organisations could create or fund
International donor organisations could provide funding awareness-raising campaigns focusing on human-
and technical support for the development of the portal and resources management best practices and trends or could
app, and ensure that the processes needed to deploy the even develop the training content. However, the training
platform effectively are implemented. programmes themselves should be conducted by local
organisations, with some financial contribution by the
companies benefiting.
127
APPENDIX
129
APPENDIX
APPENDIX 1: METHODOLOGY
Employment and Labour Market Analysis (ELMA) is a methodological tool developed by GIZ. It provides a comprehensive
analysis of the constraints and potential for employment creation and serves as a basis for recommendations for interna-
tional development interventions. So far, GIZ has published about 13 ELMAs in different countries.
For this ELMA Lebanon, the following research methods were used (see Figure 30 below for an overview):
• Review of ELMA 2016: GIZ published an ELMA Lebanon in early 2016. Due to recent developments and a number
of new / upcoming projects, GIZ felt that the 2016 ELMA needed a revision. Thus, the process began with a close review
of the ELMA and discussion with the first ELMA’s authors.
• Desktop research: As there are numerous studies of the Lebanese labour market and related topics, the authors
reviewed existing reports, strategies, policy papers as well as statistical data to get a good understanding of the land-
scape and current state of discourse. The bibliography in Annex 2 provides an overview of sources for the ELMA.
• Expert interviews via phone and meetings in person: The authors conducted 39 interviews with experts
from ministries, Lebanese and international organisations, governmental and non-governmental organisations, develop-
ment banks, companies and private sector associations to get first-hand information on the current situation of the Leba-
nese economy, its framework conditions, as well as education, employment and the labour market. An overview of these
resource persons is found in Annex 3.
• GIZ Expert workshop: The authors presented their first results in a workshop to the employment, TVET, livelihood
and private sector experts of GIZ and KfW Lebanon in October 2018. The aim was to discuss the findings and make sure
the study is relevant to the work of people working in this field.
• Multi-stakeholder workshop: Prior to the study’s finalisation, GIZ invited 70 experts and practitioners in the field
of labour market policies, employment activities, human resources management and donor support to elaborate the rec-
ommendations of the ELMA and discuss next steps in their implementation.
Figure 30: Overview of research methodologies employed in ELMA Lebanon 2019
Desktop Meetings with Multi-

research and companies and GIZ Expert Final
First ELMA stakeholder
expert organisations Workshop, version of
Lebanon Workshop,
interviews in Lebanon Beirut ELMA
2015 Beirut
08-10/2018 10/2018 18.10.2018 02/2019
23.01.2019
Strategy papers, 39 interviews/ meetings with

Policy papers of • International organisations like
international ILO, World Bank
organisations, • Ministries
statistical data, etc. • Lebanese organisation like IDAL,
Chambers of Commerce
• Private sector companies
• Etc.
Source: Authors
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Delegation of the European Union to Lebanon, 21.03.2018, EU biggest donor to the Lebanese health sector, https://eeas.
europa.eu/delegations/lebanon/41772/eu-biggest-donor-lebanese-health-sector_en, (accessed 10.11.2018)
European Commission website, EU Regional Trust Fund in Response to the Syrian Crisis, https://ec.europa.eu/neigh-
bourhood-enlargement/neighbourhood/countries/syria/madad_en (accessed, 03.12.2018)
Executive Magazine, 06.08.2018, A look into Lebanon’s healthcare, http://www.executive-magazine.com/special-re-
port/a-look-into-lebanons-healthcare, (accessed 15.11.2018)
Fanack.com, Economy of Lebanon, https://fanack.com/lebanon/economy/, (accessed 30.11.2018)
Furniture Cluster Lebanon, https://www.medcreative.org/cluster-tripoli-lebanon (accessed 15.02.2019)
Growth Elite Network, 09.08.2018, A look into Lebanon’s healthcare, https://growth.elite-network.com/en/content/news/
look-lebanon-s-healthcare, (accessed 10.11.2018)
IDAL, Lebanon at a glance, https://investinlebanon.gov.lb/en/lebanon_at_a_glance, (accessed 10.11.2018)
ILO, Towards improved formal and non-formal Technical Vocational & Education Training in Lebanon. https://www.ilo.org/
beirut/projects/WCMS_565202/lang--en/index.htm (accessed 01.12.2019)
In Depth Net, Japan Funds UNIDO Project to Boost Employment in Lebanon, https://www.indepthnews.net/index.php/the-
world/middle-east-north-africa/1816-japan-funds-unido-project-to-boost-employment-in-lebanon (accessed 01.12.2019)
KfW website, https://www.kfw-entwicklungsbank.de/International-financing/KfW-Development-Bank/Local-presence/
North-Africa-and-Middle-East/Lebanon/ (accessed 03.12.2018)
Shanda Consult, 23.07.2018, Lebanon’s Fast-Growing Start-Up Ecosystem, http://www.mondaq.com/x/721684/Corpo-
rate+Commercial+Law/Lebanons+FastGrowing+StartUp+Ecosystem, (accessed 4.12.2018))
Tamin Akiki (2006): Evaluating The Peg in a Small-Open Economy. The Case Study of Lebanon, https://www.hamilton.
edu/documents/levitt-center/PosterTamim.pdf, (accessed 07.02.2019).
The Daily Star, 01.04.2018, CEDRE will secure 900,000 jobs: Hariri http://www.dailystar.com.lb/News/Leba-
non-News/2018/Apr-01/443757-cedre-will-secure-900000-jobs-hariri.ashx (accessed 25.11.2018)
The Daily Star, 01.05.2015, Bassil promises to ease citizenship for expatriates http://www.dailystar.com.lb/News/Leba-
non-News/2014/May-01/255048-bassil-promises-to-ease-citizenship-for-expatriates.ashx#axzz30yVHukzf, (accessed
30.11.2018)
The Daily Star, 07.10.2017, Endgame for the country’s informal economy, http://www.dailystar.com.lb/Opinion/Commen-
tary/2017/Oct-07/421828-endgame-for-the-countrys-informal-economy.ashx, (accessed 5.12.2018)
The Daily Star, 07.10.2017, Endgame for the country’s informal economy, http://www.dailystar.com.lb/Opinion/Com-
mentary/2017/Oct-07/421828-endgame-for-the-countrys-informal-economy.ashx, (accessed 01.12.2018); (accessed
23.11.2018)
The Daily Star, 18.09.2018, Civil servants’ end-of-service benefits ‘a time bomb’, https://www.pressreader.com/lebanon/
the-daily-star-lebanon/20180918/281487867257394, (accessed 2.12.2018)
The Daily Start, 03.01.2018, Kabbara Eyes Social Security Reform http://www.dailystar.com.lb/News/Leba-
non-News/2018/Jan-03/432238-kabbara-eyes-social-security-reform.ashx (accessed 01.12.2018)
The Directory of Exports and Industrial Firms in Lebanon, 2017-2018.

UNIDO, UNIDO opens vocational training centre in northern Lebanon, https://www.unido.org/news/unido-opens-vocational-
training-centre-northern-lebanon (accessed 01.12.2019)
UNIDO: https://www.unido.org/news/lebanon-develop-industrial-zones-stimulate-economic-growth, (accessed 30.11.2018)
UNRWA website, https://www.unrwa.org/where-we-work/lebanon (accessed 02.12.2018)
UNRWA, Statement of UNRWA Commissioner-General, to the Advisory Commission, https://www.unrwa.org/newsroom/
official-statements/statement-unrwa-commissioner-general-advisory-commission-Nov2018 (accessed 02.12.2018)
www.visit-lebanon.org, (accessed 10.12.2018)

135
APPENDIX 3: RESOURCE PERSONS
We thank all our interview partners for their openness and the valuable insights that they shared with us between Sep-
tember and November 2018.
NAME OF ORGANISATION OR COMPANY NAME POSITION
Director Career and Placement

American University of Beirut Melina Harb
Services
Association of Lebanese Industrialists Talal Hijazi General Manager
Berytech Ramy Boujawdeh Deputy General Manager
Chamber of Commerce, Industry and

Roger Khayat Economic Advisor
Agriculture of Beirut and Mount Lebanon
Chamber of Commerce, Industry and

Lana El Tabch Executive Economist
Agriculture of Beirut and Mount Lebanon
Code& Dot Ahmad Al Kassas Co-founder

Consultant for Unions Ghassan Sleibly Consultant
Damj Design and Craft Ahmad Khouja Owner
Deutsch Center Thomas Wegener Owner
Economic and Social Fund for Development Haitham Omar Managing Director
EYG Foundation Nour Dia Yaman Head of Foundation
Gardenia foods Nicolas Abou Fayssal CEO
GIZ International Service, ProVTE Janet Gohlke-Rouhayem Key Expert practice oriented VTE
GIZ International Service, ProVTE Nada Mouzannar-Melki Expert in Lebanese VTE system
GIZ, Construction & Training Programme

Jens Kambeck Head of Programme
(ConTra)
GIZ, QUDRA - Resilience for Syrian refugees,

IDPs and host communities in response to the Afsana Rezaie Advisor, Skills Development
Syrian and Iraqi crises
GIZ, QUDRA - Resilience for Syrian refugees,

IDPs and host communities in response to the Haikal el Abed Team Leader
Syrian and Iraqi crises
GIZ, Local Development Programme for

Advisor, Income & Employment
Deprived Urban Areas Doris Darwish
Generation
in North Lebanon (UDP-NL)
GIZ, Local Development Programme for

Deprived Urban Areas Toufic Nakhoul Technical Advisor
in North Lebanon (UDP-NL)
HireLebanese Rabih Mogharbel Founder
ILO Lama Oueijan Senior Specialist/ Employers Activities
National Project Coordinator, Work in

ILO Zeina Mezher
Freedom and Migration
ILO Tariq Haq Senior Employment Policy Specialist,
ILO Simon Hills Chief Technical Advisor
Investment Development Authority of

Abbas Ramadan Business Analyst
Lebanon
KfW Nadine Weber Local Economic Development
KfW Klaus Kirchmann Senior Consultant
LEAD Healthcare Consultancy Ahma Mustafa Managing Director
LIFE Lebanese International Finance

Zeina Mhanna Director Project Management
Executives
LOST Lebanese Organisation of Studies and
Rami Lakkis Founder and General Manager
Training
Makhzoumi Foundation Anass Charara Project manager
Memo SARL Mazen Shbaro Co-Founder
Ministry of Economy and Trade Johnny M. Matta Senior Enterprise Policy Officer
Ministry of Education and Higher Education,

Salam Younes Director General
DG
Ministry of Industry Youssef Bteich Information Officer
Ministry of Labour Georges Ayda Director General
Ministry of Social Affairs Judge Abdallah Ahmad Director General
DNY Group Tarek Dajani Chairman
Moubadarat wa Kararat Association Dal Hitti Founding President
National Employment Office Jean Abi Fadel Director General
Halwany Consumer Products SAL Cynthia Bakhos Human Resource Manager
Professional Computer Association Camille Moukarzel President
Program Leader for Human

The World Bank Haneen Sayed
Development
Labour and Social Protection
The World Bank Angela Elzir Assy
Specialist
T-Marbouta Abdul Rahman Zahzah Co-founder
UNDP Tom Thorogood Chief Technical Advisor
UNICEF Jackline Atwi Child Protection Officer
USAID William M. Butterfield Director, Economic Growth Office
Younes Café Amin Younes Managing Partner
Balsam Madi Architect
137
APPENDIX 4: ENDNOTES
1
Paul Tabar (2010): Lebanon: A Country of Emigration and Immigration.
2
ILO, Employment-to-population ratio -- ILO modelled estimates, Nov. 2018, https://www.ilo.org/ilostat/faces/oracle/
webcenter/portalapp/pagehierarchy/Page3.jspx?MBI_ID=7&_afrLoop=1463911161474491&_afrWindowMode=0&_afr
WindowId=hbalaocp3_196#!%40%40%3F_afrWindowId%3Dhbalaocp3_196%26_afr
Loop%3D1463911161474491%26MBI_ID%3D7%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dhbalaocp3_269
(accessed 10.11.2018).
3
ILO, Key Indicators of the Labour Market (accessed 06.11.2018).
4
5
UNICEF Baseline study, https://data2.unhcr.org/en/documents/download/49509 Interagency Coordination, In focus –
child labour, November 2018
6
World Bank (2017): Jobs for North Lebanon
7
8
9
The Daily Star, 18.09.2018, Civil servants’ end of service benefits ‘a time bomb’, https://www.pressreader.com/lebanon/
the-daily-star-lebanon/20180918/281487867257394 (accessed 2.12.2018).
10
11
UNESCO UIS, http://uis.unesco.org/
12
13
14
15
Jamali, Y. Sidani & A. Safieddine (2005): Constraints Facing Working Women in Lebanon: An Insider’s View, Women in
16
World Bank, Doing Business Index
17
18
19
World Bank (2018): Lebanon's Economic Outlook April 2018.
20
Economic long-term structure during the period 2004-2016; World Bank (2018): Lebanon Economic Monitor Fall 2018.
De-Risking Lebanon.
21
World Bank (2018): Lebanon Economic Monitor Fall 2018. De-Risking Lebanon.
22
World Bank (2018): Lebanon's Economic Outlook April 2018.
23
Blominvest Bank (2018): Why the Peg is the Best Option for Lebanon?
24
25
26
World Bank (2016): Lebanon Economic Monitor Spring 2016. A geo-economy of risks and reward; World Bank (2018):
Strategic Assessment: A Capital Investment Plan For Lebanon.
27
UNDP (2015): Human Development Report.
28
29
UNDP: Poverty Assessment Report, https://blogbaladi.com/undp-latest-poverty-assessment-report-30-of-leba
nese-are-poor/, (accessed 07.12.2018)
30
31
World Bank (2011): Striving for Better Jobs. The Challenge of Informality in the Middle East and North Africa Region.
32
The Daily Star, 07.10.2017, Endgame for the country’s informal economy, http://www.dailystar.com.lb/Opinion/Commen
tary/2017/Oct-07/421828-endgame-for-the-countrys-informal-economy.ashx (accessed 01.12.2018); World Bank (2015):
Lebanon - Promoting poverty reduction and shared prosperity: a systematic country diagnostic.
33
According to the Ministry of Social Affairs, in 2006 5,000 private homes, 62 bridges, 72 overpasses, 22 fuel stations, 3
dams, 600 kilometres of roads, the lighthouse and the ports of Beirut and Tripoli as well as the Beirut International Air
port were damaged.
34
BBC News: Lebanon damage report, http://news.bbc.co.uk/2/hi/in_depth/629/629/5218106.stm (accessed 30.11.2018),
Fanack.com, Economy of Lebanon, https://fanack.com/lebanon/economy/ (accessed 30.11.2018)
35
World Economic Forum (2018): The Global Competitiveness Index 2017–2018.
36
World Bank (2018): Strategic Assessment: A Capital Investment Plan For Lebanon.
37
38
IDAL (2018): Infrastructure & Logistic Transportation.
39
UNIDO: https://www.unido.org/news/lebanon-develop-industrial-zones-stimulate-economic-growth (accessed
30.11.2018); World Bank (2018): Strategic Assessment: A Capital Investment Plan For Lebanon.
40
41
The following financial support was agreed upon: USD 10.2 billion in loans, including USD 9.9 billion in concessional
terms, USD 0.86 billion in grants (including grants to subsidise loans); Joint statement CEDRE conference, https://www.
diplomatie.gouv.fr/IMG/pdf/cedre_statement-en-_final_ang_cle8179fb.pdf (accessed 01.12.2018).
42
Lebanese Information Center Lebanon (2013): The Lebanese Demographic Reality.
43
The Daily Star, 01.05.2015, Bassil promises to ease citizenship for expatriates http://www.dailystar.com.lb/News/Leb
anon-News/2014/May-01/255048-bassil-promises-to-ease-citizenship-for-expatriates.ashx#axzz30yVHukzf (accessed
30.11.2018); Paul Tabar (2010): Lebanon: A Country of Emigration and Immigration.
44
45
UN DESA (2010/2017): Word Population Prospects 2017, https://population.un.org/wpp/ (accessed 20.11.2018).
46
47
World Bank (2015): Lebanon - Promoting poverty reduction and shared prosperity. A systematic country diagnostic.
48
World Economic Forum (2018): The Global Competitiveness Index 2017–2018; World Economic Forum (2017): The
Executive Opinion Survey 2016: Views of the Business Community on the Global Risks of Highest Concern for Doing
Business.
49
McKinsey (2019): Lebanon Economic Vision, https://www.economy.gov.lb/media/11893/20181022-1228full-report-en.
pdf?fbclid=IwAR1D3dyuF33kZKS07CWomIljvLPFaOpA4Rb213Ve3PDbhcHF6ijsdcqRIQA.
50
Arab NGO Network for Development/AUB Policy Institute (2018): On the way to HLPF 2018.
51
52
Ministries of Economy and Trade (26.10.2018): Indicators on SMEs economic impact, https://www.economy.gov.lb/me
dia/11681/smes-indicators-181026-37-external.pdf (accessed 10.11.2018).
53
CAS, http://www.cas.gov.lb/index.php/demographic-and-social-en/laborforce-en (accessed 05.11.2018).
54
ILO, Unemployment rate -- ILO modelled estimates, Nov. 2018 https://www.ilo.org/ilostat/faces/oracle/webcenter/porta
lapp/pagehierarchy/Page3.jspx?locale=en&MBI_ID=2&_adf.ctrl-state=hbalaocp3_4&_afrLoop=1463239142271666&_
afrWindowMode=0&_afrWindowId=hbalaocp3_1#! (accessed 10.11.2018).
55
ILO, Employment-to-population ratio -- ILO modelled estimates, Nov. 2018, https://www.ilo.org/ilostat/faces/oracle/
webcenter/portalapp/pagehierarchy/Page3.jspx?MBI_ID=7&_afrLoop=1463911161474491&_afrWindowMode=0&_afr
WindowId=hbalaocp3_196#!%40%40%3F_afrWindowId%3Dhbalaocp3_196%26_afr
Loop%3D1463911161474491%26MBI_ID%3D7%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dhbalaocp3_269
(accessed 10.11.2018).
56
63
The main contributors to employment by order of importance were wholesale and retail trade, other non-tradable service
sectors, and construction.
64
World Bank (2018): Program Appraisal Documents on proposed Loan in the Amount of 400.0 million USD to the Leba
nese Republic for creating economic Opportunities in Support of the Lebanon National Jobs Program.M
65
EFT (2015): Labour Market and Employment Policy in Lebanon.
66
67
Interagency Coordination (November 2018): In focus - Child Labour.
68
The SME definition assumes that an enterprise must meet both turnover and employee thresholds in order to be consid
ered in a particular category. For instance, a medium enterprise should simultaneously have between 50 and 100 em
ployees and an annual turnover between LBP 5 and 25 billion.
69
70
71
72
73
An-nahar, 12.07.2017, Lebanese SME lack support, funding (https://en.annahar.com/article/617403-leba
nese-smes-lack-support-funding); UK Aid et al (2016): Market Overview of Small and Medium Enterprises in Beirut and
74
UK Aid et al (2016): Market Overview of Small and Medium Enterprises in Beirut and Mount Lebanon.
75
76
57
58
Lebanon – Distribution of employment by economic sector 2004-2017, https://www.statista.com/statistics/455264/em
ployment-by-economic-sector-in-lebanon/ (accessed 07,02,2019).
59
60
61
ILO (2015): Key Indicators of the Labour Market (KILM) 2015.
139
62
EFT (2017): Lebanon Education, Training, and Employment Developments 2017.
77
Furniture Cluster Lebanon, https://www.medcreative.org/cluster-tripoli-lebanon (accessed 15.02.2019)
78
McKinsey (2019): Lebanon Economic Vision.
79
80
UK Lebanon TechHub et al (2017): Global Entrepreneurship Monitor. National Report Lebanon.
81
Shanda Consult, 23.07.2018, Lebanon’s Fast-Growing Start-Up Ecosystem, http://www.mondaq.com/x/721684/Corpo
rate+Commercial+Law/Lebanons+FastGrowing+StartUp+Ecosystem (accessed 4.12.2018).
82
83
Byblos Bank (2017): The Lebanese Economy in 2017; figures according to Ministry of Industry.
84
Word Bank (2017): Jobs for North Lebanon.
85
World Bank (2013/14): Enterprise Survey Lebanon; World Bank (2017): Jobs for North Lebanon.; World Bank (2017):
Jobs for North Lebanon.
86
87
Tamin Akiki (2006): Evaluating the Peg in a Small-Open Economy. The Case Study of Lebanon, https://www.hamilton.
edu/documents/levitt-center/PosterTamim.pdf (accessed 07.02.2019); Blominvest (2018): Why is the peg the best option
for Lebanon?
88
89
World Bank (2017): Jobs for North Lebanon
93
94
The Daily Star, 18.09.2018, Civil servants’ end of service benefits ‘a time bomb’, https://www.pressreader.com/lebanon/
95
the-daily-star-lebanon/20180918/281487867257394 (accessed 2.12.2018).

Calculation based on ILO figures of total employment, https://www.ilo.org/ilostat/faces/oracle/webcenter/portalapp/
96
pagehierarchy/Page3.jspx?MBI_ID=7&_afrLoop=1463911161474491&_afrWindowMode=0&_afrWindowId=hbalaoc
p3_196#!%40%40%3F_afrWindowId%3Dhbalaocp3_196%26_afrLoop%3D1463911161474491%26MBI_ID%3D7%26_
afrWindowMode%3D0%26_adf.ctrl-state%3Dhbalaocp3_269
97
98
99
Ibid.
100
Ibid.
101
Ibid.
102
ILO, Towards improved formal and non-formal Technical Vocational & Education Training in Lebanon. https://www.ilo.
org/beirut/projects/WCMS_565202/lang--en/index.htm (accessed 01.12.2019).
103
ILO, Improved access to employment opportunities for Lebanese host communities and Syrian refugees in Lebanon,
https://www.ilo.org/beirut/projects/WCMS_584082/lang--en/index.htm (accessed 01.12.2019).
104
UNDP, Lebanon Host Communities Support Programme (LHSP), http://www.lb.undp.org/content/lebanon/en/home/proj
ects/SupportLebaneseHostCommunities.html, (accessed 01.12.2019).
90
91
92
The Daily Star, 07.10.2017, Endgame for the country’s informal economy, http://www.dailystar.com.lb/Opinion/Commen
tary/2017/Oct-07/421828-endgame-for-the-countrys-informal-economy.ashx (accessed 5.12.2018).
105
UNIDO, UNIDO opens vocational training centre in northern Lebanon, https://www.unido.org/news/unido-opens-voca
tional-training-centre-northern-lebanon (accessed 01.12.2019)
106
In Depth Net, Japan Funds UNIDO Project to Boost Employment in Lebanon, https://www.indepthnews.net/index.
php/the-world/middle-east-north-africa/1816-japan-funds-unido-project-to-boost-employment-in-lebanon (accessed
01.12.2019).
107
108
BMZ website, http://www.bmz.de/en/countries_regions/naher_osten_mittelmeer/lebanon/index.html, (accessed
13.03.2019)
109
KfW website, https://www.kfw-entwicklungsbank.de/International-financing/KfW-Development-Bank/Local-presence/
North-Africa-and-Middle-East/Lebanon/ (accessed 03.12.2018).
110
European Commission website, EU Regional Trust Fund in Response to the Syrian Crisis , https://ec.europa.eu/neigh
bourhood-enlargement/neighbourhood/countries/syria/madad_en (accessed, 03.12.2018).
111
Acted et al (2017): LEADERS for sustainable livelihoods, https://www.acted.org/wp-content/uploads/2018/01/acted-jor
dan-leaders-factsheet-2017.pdf (accessed 03.12.2018).
112
113
Ibid.
114
Ibid.
115
WEF (2017): Global Competitiveness Report 2017/2018.
116
Gross enrolment rate is defined as the number of students enrolled in universities regardless of age divided by the size
of the population of normally university-age individuals (18-24).
In cases such as Turkey’s, where the GER exceeds 100%, the age of some students enrolled in tertiary education may
117
be outside the ‘normal’ university-going age group (i.e., they are younger or older than 18-24).
118
Countries selected are those with available data for 2017.
119
120
Hana El Ghaly et. al. (2017): Syrian Refugee Higher Education: The Case of Lebanon and Beyond. Issam Fares Insti
tute for Public Policy and International Affairs, The American University of Beirut.
Charbel Nahas (2011): Financing and political Economy of higher Education: The Case of Lebanon. Prospects, 41.
121
Pp.69-95.
122
According to the government budget for 2018 issued by the MoF, higher education accounts for 1.82 per cent of expedi
tures. Total public expenditure on education accounts for 8.7 per cent of the budget.
123
UNESCO UIS, http://uis.unesco.org/
The Meister training comes as a complementary further training to prepare high skilled vocational supervisor, who are
124
able to perform on both managerial and operational level by being the intermediaries between the production and the
management departments in the enterprise.
125
126

127
128
According to a 2009 survey, 50 per cent of alumni reported that they were not working in a job related to their degree.
129
130
Ibid.
131
132
Ibid.
133
134
BRD (2017): Skills Gap Analysis for Improved Livelihood Sustainability in Lebanon.
135
136
Currently, internships are for 1 month; companies mentioned that interns cannot be involved in real projects due to the
short timeframe of their stay in the company.
137
138
139
140
141
142
The Hariri Foundation for Sustainable Human Development and The American University of Beirut (2009). Higher Edu
cation and Labour Market Outcomes in Lebanon.
143
144
World Bank (2017): Migration and Remittances: Recent Developments and Outlook. Special Topic: Global Compact on
Migration.
145
146
UNHCR: https://data2.unhcr.org/en/situations/syria/location/71 (accessed 02.12.2018); the actual number is most likely
higher as UNHCR suspended registration as per the Government’s decision as of 6 May 2015.
147
UNHCR et. al (2017): Vulnerability Assessment of Syrian Refugees in Lebanon 2017.
148
Ferhat Pirincci (2014): The impact of the Syrian crisis on Lebanon: An evaluation on the case of Syrians in Lebanon
(based on interview Makram Malaeb, Beirut, 06/02/2014.)
149
141
150
151
152
153
UNRWA, Statement of UNRWA Commissioner-General, to the Advisory Commission, https://www.unrwa.org/newsroom/
official-statements/statement-unrwa-commissioner-general-advisory-commission-Nov2018 (accessed 02.12.2018).
154
UNHCR (2018): Vulnerability Assessment of Refugees of other Nationalities in Lebanon 2017.
155
Vlaardingerbroek Barend & El‐Masri Yasmin (2008): Student transition to upper secondary vocational and technical
education (VTE) in Lebanon: from stigma to success.
156
157
158
150
.Jamali, Y. Sidani & A. Safieddine (2005): Constraints Facing Working Women in Lebanon: An Insider’s View, Women
in Management Review, 20, 7/8, pp. 581-594.
160
.Jamali, Y. Sidani & A. Safieddine (2005): Constraints Facing Working Women in Lebanon: An Insider’s View, Women in
161
162
The TEA assesses the per cent of working age population either about to start an entrepreneurial activity which have
been in one from a maximum of 3.5 years.
163
Global Entrepreneurship Monitor (2016): National Report Lebanon.
164
165
Global Entrepreneurship Monitor (2016): National Report Lebanon.
166
167
GIZ/ILO/ETF (2015): Employment Impact and Education Quality of the Dual System in Lebanon. Findings from a tracer
study on the GIZ DSME Programme.
168
ILO (2016): Matching skills and jobs in Lebanon. Main features of the labour market – challenges, opportunities and
recommendations.
169
At the time this survey was taken, the monthly legal minimum wage in Lebanon was USD 332, or about 54 per cent of
the median monthly wage.
170
171
172
173
174
OXFAM (2015): Lebanon - Looking Ahead in Times of Crisis.
175
Walid Ammar (2003). Health system and reform in Lebanon.
176
The Daily Star, 03.01.2018, Kabbara Eyes Social Security Reform http://www.dailystar.com.lb/News/Leba
non-News/2018/Jan-03/432238-kabbara-eyes-social-security-reform.ashx
177
178
179
The Directory of Exports and Industrial Firms in Lebanon, 2017-2018. In addition to registered food industries, different
experts and studies estimate the number of food industries between 2,000 and 3,000, most of them being small and
artisanal producers operating in family business at the household level without any official registration.
180
Op. cit
181
Ministry of Industry (2007): The Lebanese Industrial Sector: Facts and Findings.
182
Ministry of Agriculture (2014): Strategy 2015-2019.
183
Ezzeddine, Nancy (2017). Missed Opportunities amid Great Potential in the Agro-Food Sector. Lebanese Center for
Policy Studies.
184
185
Agricultural practices are marked by a high level of pesticide use and there are water and soil quality concerns. In ad
dition, quality improvements are considered a high cost for companies- estimated at 7 per cent of the total budget for
the sector (UNIDO, FAO, 2016).
186
For example, the EU calculates that the farm-gate prices are almost 50 per cent less than in Lebanon.
187
Interview with IDAL
188
GIZ / Nada Mouzannar Melki (2017): Sector Survey for Lebanon: Promising Sectors for Employment of Skilled and
Semi-Skilled Labour.
189
UNDP (2016). Mind the Gap.
190
As verified in interviews with companies.
191
UNDP (2016): Mind the gap.
192
193
Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon / Lana El Tabch (2017): The Lebanese
Economy in 2017.
194
195
Blominvest Bank (2018): Lebanon’s Commercial Real Estate Market: An Overview.
196
The Daily Star, 01.04.2018, CEDRE will secure 900,000 jobs: Hariri http://www.dailystar.com.lb/News/Leba
non-News/2018/Apr-01/443757-cedre-will-secure-900000-jobs-hariri.ashx
197
198
ILO (2017): Labour Market Information Review and Analysis. In-focus on North Lebanon.
199
Lebanon Emergency Market Mapping and Analysis (EMMA) (2013): Executive Briefing for Analyses of the Construc
tion, Service Sector and Agricultural Labor Systems.
200
201
Ibid.
202
Ibid.
203
Estimation; UNCTAD (2015): Creative Economy Outlook and Country Profiles, Trends in International Trade in Creative
Industries
204
Estimation; World Bank (2018): Strategic Assessment: A Capital Investment Plan for Lebanon
205
EU (2014): Lebanon Country Report, Culture in EU external relations.
206
World Bank (2018): Strategic Assessment: A Capital Investment Plan for Lebanon
207
European Union (2014): Mapping of Clusters in Cultural and Creative Industries in the Southern Mediterranean.
208
GIZ Appraisal Mission 2018 for Culture and Creative Industries global project.
209
European Union (2014): Mapping of Clusters in Cultural and Creative Industries in the Southern Mediterranean
210
The SWOT analysis was created during an appraisal mission for GIZ’s Culture and Creative Industries global project in
May 2018.
Executive Magazine, 06.08.2018, A look into Lebanon’s healthcare, http://www.executive-magazine.com/special-re
211
port/a-look-into-lebanons-healthcare (accessed 15.11.2018).

212
Executive Magazine, 06.08.2018, A look into Lebanon’s healthcare, http://www.executive-magazine.com/special-re
port/a-look-into-lebanons-healthcare (accessed 15.11.2018).
213
IDAL, Lebanon at a glance, https://investinlebanon.gov.lb/en/lebanon_at_a_glance (accessed 10.11.2018).
214
look-lebanon-s-healthcare (accessed 10.11.2018).
215
Delegation of the European Union to Lebanon, 21.03.2018, EU biggest donor to the Lebanese health sector, https://
eeas.europa.eu/delegations/lebanon/41772/eu-biggest-donor-lebanese-health-sector_en (accessed 10.11.2018).
216
Ibid.
217
look-lebanon-s-healthcare (accessed 10.11.2018).
218
Ibid.
219
Charles Saliba, 25.10.2013, The Healthcare Sector in Lebanon. Why Re-Organization & Human Resources Now? In:
Human and Health.
220
UNDP (2016): Mind the Gap.
221
222
CAS (2018): Lebanese National Accounts 2004-2017. Comments and Tables 2017. http://cas.gov.lb/index.php/nation
al-accounts-en (accessed 20.11.2018)
223
224
Beirut Today, 25.09.2017, What Is the Impact of Banque du Liban’s Circular 331 on the Lebanese Economy? http://bei
rut-today.com/2017/09/25/what-is-the-impact-of-banque-du-libans-circular-331-on-the-lebanese-economy/
225
226
Ibid.
227
GSMA Intelligence, Lebanon, https://www.gsmaintelligence.com/markets/2007/dashboard/; including 3G and 4G.
228
143
230
UNDP (2016): Mind the Gap.
231
Bankmed (2017): Analysis of Lebanon’s Travel and Tourism Sector.
232
Bankmed (2017): Analysis of Lebanon’s Travel and Tourism Sector; World Bank (2018): Strategic Assessment, A Cap
ital Investment Plan for Lebanon.
233
Byblos Bank (2017): The Lebanese Economy in 2017.
234
World Bank (2018): Strategic Assessment, A Capital Investment Plan for Lebanon.
235
Interview with Anass Sharara, Project Manager of Makhzoumi Foundation (MF)
236
237
238
239
240
Visit Lebanon website, www.visit-lebanon.org (accessed 10.12.2018).
241
World Bank (2018): Strategic Assessment: A Capital Investment Plan for Lebanon.
242
243
GIZ / Nada Mouzannar Melki (2017): Technical Assistance for a more practice oriented VTE in Lebanon. Sector Survey
for Lebanon: Promising Sectors for Employment of skilled and semi-skilled Labour.
244
Interview with Abdul Rahman Zahzah, owner of T Marbouta, 24.10.2018
245
246
GIZ (2017): Value Links 2.0. Manual on Sustainable Value Chain Development.
247
248
Ibid.
Published by the
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
Registered offices
Bonn and Eschborn, Germany
GIZ Office Beirut

Royal Tower Building 40, 9th floor Nicolas El-Turk Street 50
Medawar/Beirut, Lebanon
T +961 (0)1 587 701
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E Info-lebanon@giz.de
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As at
February 2019
Design
Lea-Mikaella Raidi, Beirut, Lebanon
Photo credits
List of photographers in alphabetical order

©Houssam Mchaiemch: P. 69, 82, 96
©Lamis Hakim Cover: P. 22, 34, 70, 76, 90
©Markus Kirchgessner: P. 111
©Ursula Meissner: P. 10, 13, 106
©GIZ ProVTE programme P. 9, 40, 48, 50, 54, 112
©GIZ Qudra Programme P. 14, 18, 57, 58, 87, 127, 128
Text
Authors: Claudia Knobloch, Berlin, Germany, Thorsten Kirschner, Bucharest, Romania, Zeina Osman, Beirut, Lebanon; based on
the 2016 version of the ELMA Lebanon by Janet Gohlke-Rouhayem, Nada Melki, Christoph David Weinmann
Editor: Barbara Serfozo, Berlin, Germany
GIZ is responsible for the content of this publication.
On behalf of the
German Federal Ministry for Economic Cooperation and Development (BMZ)
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EMPLOYMENT AND LABOUR

MARKET ANALYSIS LEBANON

2 FRAMEWORK CONDITIONS FOR EMPLOYMENT GENERATION 22

3 LABOUR MARKET TRENDS 34

THE LABOUR DEMAND SIDE: THE IMPACT OF BUSINESS

6 MATCHING DEMAND FOR AND SUPPLY OF LABOUR 76

7 IMPORTANT SECTORS FOR EMPLOYMENT GENERATION 90

Figure 1: Overview of structure of ELMA report

C H A P TER 4 : CHAPTER 6: CHAPTER 5:

EMPLOYMENT FIGURES YOUTH UNEMPLOYMENT

standards, others blame weak shipping infrastructure and

LABOUR SUPPLY SIDE VOCATIONAL EDUCATION

MATCHING DEMAND AND SUPPLY

Recommendations: framework conditions

ACTOR POTENTIAL APPROACH

Relevant ministries and national

Investment climate and business environment

Support policymakers and public institutions in improving the business

ACTOR POTENTIAL APPROACH

Employment potential in MSME

Export and trade promotion

Help strengthen the quality-assurance infrastructure in selected export-

IDAL Help strengthen export and investment agencies’ capacities.

Employment in the informal sector

Support the implementation of the planned law giving companies incentives

Provide management-skills training for selected informal sectors with growth

ACTOR POTENTIAL APPROACH

Establish collaborations between universities and companies for research

Create or fund awareness-raising programmes regarding the benefits

Improve resource-allocation efficiencies in public TVET programmes by

Life and soft skills training

MEHE, higher-education and TVET

Create programmes training company employees to take on middle-

Create programmes creating incentives for diaspora members to return

Provide funding for work programmes with a balanced participation of

Create society-wide awareness-raising programme focusing on breadth of well-

Create comprehensive vocational and life/soft skills training programmes and

Recommendation: Labour-market matching

ACTOR POTENTIAL APPROACH

Establish a regularly updated and centralised labour-market information system

Encourage companies, organisations and placement/ recruiting agencies to

Recruiting and retaining staff

Create awareness-raising programmes highlighting the benefits deriving

Wages and collective bargaining

Figure 2: GDP development 2008 - 2017

Source: IMF Datamapper, Real GDP Growth, https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/

the movement of capital has created a strong and highly

FREE MARKET ECONOMY, BUT OLIGARCHIC HIGH RATE OF INFORMALITY

around USD 2.5 billion in the informal substitute market

Source: UN DESA, World Population Prospects 2017

Figure 4: Estimated population development

Source: UN DESA, World Population Prospects 2017

Index Component Rank/137 Value Trend

1st pillar: Institutions 124 3.2

1.01 Property rights 77 4.2

Table 2: Scorecard for international benchmarking reports

BENCHMARK 2013 2014 2015 2016 2017 2018 LATEST

Figure 5: Most problematic factors for doing business in Lebanon

Source: World Economic Forum (2017):