2024-05-01 08:06:27
Two brief pieces of news summarize the unfortunate reality of the situation of labor and workers in Libya. The first is the announcement by the National Unity Government that tomorrow, Wednesday, will be an official holiday, on the occasion of International Workers’ Day. At the same time, the General Federation of Trade Unions called for a protest in front of the headquarters of the “General Command” in Benghazi, to deliver… The workers voted on their day, pushing the government to consider the reality of work in Libya.
The government considers the holiday merely a grant it offers to its workers as a holiday gift, while the workers see that changing working conditions, looking into the salary and wage series (public and private), and improving working conditions, is a gift that can be given by one or two governments (because Libya has two governments). An advantage that only exists in this country, which has great wealth that is envied by its near and distant neighbors.
Is there a realistic view through which an observer can see the reality of work in Libya? We will try, in this moment, to provide a simplification of the features and suffering of the Libyan labor sector, so that we may contribute in part to the effort made to correct things and put them in perspective.
The World Bank explains the reality
According to a study prepared by the World Bank in 2016 entitled “The Labor Market in Libya… Reintegration for Recovery,” the most prominent challenges facing the Libyan labor market are primarily the instability of the political environment and the continuation of the conflict. This important factor is followed by several other factors, according to The World Bank.
The weak work climate reduces the demand for labor, and the dominance of the public sector, as the preferred employer, over the economy. The privileges given to government jobs reduce the demand for work in the private sector, and labor laws regarding contracts, transfers, hiring, and firing from Service are all factors influencing the labor market, in addition to the duality of social security between the public and private sectors. Weak insurance coverage in the private sector usually leads to turning to the public sector.
How can the bug be fixed?
According to experts, it is necessary to build the necessary foundations to create sustainable and diversified growth. Growth requires intervention measures to restore security and stability of institutions, and then strengthen stability and incentives within the business climate in the short and medium term, enhance the ability to obtain work, bring about a shift in the role of the public sector as a preferred employer for work, reduce its dominance, and ensure the enactment of labor legislation that ensures Providing sufficient incentives to create job opportunities in the private sector, in addition to reducing duplication in social security policies between the public and private sectors.
How can this be achieved and what are the challenges?
The first challenge, according to business sector specialists, lies in the weakness of the rule of law and political instability, including weak institutions, and the second challenge is the lack of a favorable business environment, including the financial market, which has not reached a reasonable level of governance and transparency that qualifies it to manage a rich economy that suffers from… Huge corruption.
The third challenge facing the development of the business sector in Libya lies in the lack of development of human capital, and this is reflected in high unemployment and educational indicators, training and qualification.
General features to consider
Young people between the ages of 15 and 24 represent 10 percent of the labor force, and females constitute 34 percent of the labor force. The Libyan labor market reveals wide disparities between the sexes. The vast majority of workers in Libya work in the public sector, approximately 84 percent, which is a very high percentage. The majority of Libyans usually work on open, indefinite contracts, especially the public sector.
The distribution of wages shows that the average wage is approximately 791 Libyan dinars per month, which is equivalent to approximately 100 US dollars at the parallel market price, and it is one of the very low wages compared to the country’s oil capabilities, and the numbers indicate an also high unemployment rate, reaching 20 percent, and this Also a very negative indicator.
The labor market also suffers from a multiplicity of references. The Ministry of Labor and Rehabilitation is the one that regulates the sector to a large extent, and a special body has been established to defend and serve former combatants, which is the Veterans Affairs Authority affiliated with the Presidency of the Council of Ministers. The Ministry of Social Affairs manages the National Social Security Fund, which covers workers in the public and private sectors in addition to those who work as freelancers. Benefits cover the elderly, maternity, and the disabled, and support workers in cases of job loss and death.
Will you be back after Eid?
Today, as the Libyans celebrate International Labor Day, have the two governments realized that the problems of the labor market must be solved if we want to achieve development, and the beginning must be with a modern labor law that balances the private and the public, and protects the worker and the employer together, with an orientation towards supporting required categories of workers? Business is related to education, health, technology, and the localization of the oil industries in particular, and the restructuring of local chambers of commerce to be able to support business development services. Could we soon witness in Libya a comprehensive and modern labor law that is consistent with the state’s trend towards openness and development in all fields?
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2024-05-01 08:06:27