Lebanese Economic Tribune - LET Report Number 2


The Labor Market and Labor Policy in Lebanon

Executive Summary

The third LET seminar on Labor policy was held on the 3rd of April, 1996 at the Carlton Hotel. Dr. Najib Issa, an LCPS research associate and a professor of Economics at the Lebanese University, presented his paper to a group of 40 economists, policy-makers, academics, and the media. The seminar came at a time when relations between the Labor Union and the government were deteriorating, with the union asking for a general strike to oppose the government's social and economic policies.

The study focused on three needs for labor : developing a national data bank on labor supply and demand by sector, region, and specialization; investing in productive semi-skilled and highly skilled sectors of industry, agriculture, and services; limiting and controlling the influx of foreign labor to reduce domestic unemployment, and conducting retraining programs for the unemployed or under-employed to orient them towards economic sectors having higher demand; and restructuring the private and public educational and vocational systems to enhance the chances of school and university graduates being employed.

Discussions following the presentation emphasized the uncertainties facing Lebanese labor after a regional peace settlement, in particular the low cost of Syrian and Egyptian labor, and the higher skills of Israeli labor. The discussions also revolved around the need to develop a short-term plan in order to decrease the unemployment problem in Lebanon from its current levels to something closer to 7-10%.

The study entitled "The Labor Market and Labor Policy in Lebanon" was published in Arabic and was widely distributed to ministers, parliamentarians, economist and members of the press. It includes the paper and the seminar discussions.


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