War raises unemployment
and leads to labor wage decline

Displacement is a primary cause

according to a survey by ILO and labor unions

The war that started in March 2026 has exacerbated unemployment in the private sector. A study released by the International Labour Organization (ILO) reveals that 33 percent of private sector labor union members and others have lost their jobs since the start of the war in March. Within this group, 28 percent became entirely unemployed, and nearly five percent left the workforce altogether.

This leads to leaving one in three unemployed and overall labor income slashed by 40 percent.

More than two-thirds of the workers displaced from their homes are now out of work. The crisis is most acute in frontline regions, with job losses reaching 76 percent in the Nabatieh Governorate and 43 percent in the South Governorate.

The economic shockwaves are felt nationwide, as businesses everywhere suffer from reduced market demand, high inflation, and severe operational disruptions.

Displacement is the primary catalyst for this sudden labor collapse. Even those who managed to retain their employment have not escaped financial hardship, facing an average 15 percent drop in monthly earnings. This massive income destruction is disproportionately impacting vulnerable groups, including women, youth, and persons with disabilities, who face the highest rates of joblessness.

For the few who have managed to find new employment, the conditions are bleak. These workers are taking an average 30 percent wage cut and are largely being pushed into informal or unprotected roles.

ILO officials warn that the ongoing hostilities are destroying not just infrastructure, but the very foundations of daily survival, underscoring an urgent need to prioritize decent work and targeted economic assistance in the regional recovery response.

Conducted in collaboration with local labor unions, the survey polled nearly 2,500 private sector workers.