ILO Says Lebanon Conflict Has Cut Private Sector Incomes by 40%

The findings show that job losses, displacement and economic disruption are pushing many families into greater financial hardship while increasing the need for employment support and social protection.

The latest escalation of conflict in Lebanon has dealt a severe blow to the country's private sector, leaving thousands of workers without jobs and sharply reducing household incomes, according to a new International Labour Organization (ILO) report. The findings show that job losses, displacement and economic disruption are pushing many families into greater financial hardship while increasing the need for employment support and social protection.

One in three workers lost jobs during the conflict

The report, "Lebanon's Labour Market in Crisis: Assessing the Impacts of Renewed Conflict and Regional Instability – A Focus on Private Sector Workers," is based on a survey of 2,485 private sector employees and self-employed workers conducted in May 2026. The study covered people who were working before hostilities resumed in March 2026 and was carried out in partnership with the General Confederation of Lebanese Workers (CGTL) and the Federation of Employees' and Workers' Unions in Lebanon (FENASOL).

According to the survey, 33 percent of respondents were no longer working at the time of the study. Of those, 28.2 percent were unemployed, while 4.7 percent had left the labour force altogether. The impact was most severe in southern Lebanon, where conflict has been concentrated. Job losses reached 76.5 percent in Nabatieh Governorate and 43.2 percent in South Lebanon Governorate. The report also found that workers in other parts of the country experienced reduced employment opportunities as businesses struggled with weaker demand, inflation and broader economic disruption.

Displacement played a major role in unemployment. More than 37 percent of surveyed workers remained displaced, while another 14.2 percent had been displaced during the conflict before returning home. More than two-thirds of workers who were still displaced had lost their jobs.

Vulnerable groups face the greatest hardship

The report found that the crisis has hit already vulnerable groups particularly hard. Joblessness reached 71.4 percent among persons with disabilities, 44.3 percent among women, 42.4 percent among young people aged 15 to 24, 39.4 percent among Syrian refugees, and 37.7 percent among workers in informal employment. Workers without written employment contracts, those with lower levels of education and employees of smaller businesses were also more likely to become unemployed.

Even those who remained employed faced declining incomes. Average earnings among workers who kept their jobs fell by 14.8 percent, while overall labour income across all surveyed workers declined by an estimated 40.4 percent after taking into account the complete loss of earnings among those who became unemployed. Many workers who found new employment accepted jobs under less favourable conditions, earning 30.7 percent less on average than before the conflict, with most moving into informal work or self-employment.

Recovery will require jobs, social protection and business support

The economic strain has forced many households to rely on savings to cover basic expenses. More than 40 percent of Lebanese, Syrian and Palestinian workers surveyed reported delaying loan repayments or utility bills, while many reduced spending on food, raising concerns about growing food insecurity. Almost 46 percent of respondents said finding stable employment was their greatest need, while 37.7 percent identified higher or more reliable earnings as their main priority.

ILO Regional Director for Arab States Ruba Jaradat said the crisis is destroying not only infrastructure but also livelihoods, making employment recovery and stronger social protection essential alongside humanitarian assistance. The report recommends a combination of immediate and long-term measures, including employment-intensive recovery programmes, wage subsidies, expanded social protection, targeted support for women, persons with disabilities, self-employed workers and small businesses, as well as investments in vocational training, enterprise recovery, labour market institutions and a comprehensive national employment policy to help rebuild Lebanon's economy.