Libya

Overall View

Libya has a vast territory, a relatively small population of 5.5 million nationals, one third of which is under 15 years old, and important oil reserves. In 2003 it ranked 58th out of 177 countries on the Human Development Index; mainly due to high per capita income and an adult literacy rate as high as 80%, by far the highest in Africa.

The country is progressing in economic reforms, particularly after the lift in 2003 and 2004 of UN and US sanctions. It has been taking initial steps to liberalize its socialist-oriented economy, to make it more market-based; among others applying for WTO membership, reducing some subsidies, and announcing plans for privatization (the government still employs some 70% of all national employees).

The Libyan economy, growing at some 9% in 2004, is dominated by the hydrocarbons sector, that represented in 2003 some 97% of export earnings, 86% of government receipts and 55% of nominal GDP. Oil revenues afford Libya one of the highest per capita GDPs in Africa, around $7,570 in 2003. The manufacturing and construction sectors now represent about 20% of GDP. Manufacturing has evolved from processing mostly agricultural products, to include the production of petrochemicals, iron, steel, and aluminum.

The economy displays the classical features of an oil-rich economy: need of economic diversification and a significant reliance on less heavy reliance on immigrant labour, to allow tackling its serious structural unemployment problem. Expatriate workers, from other Arab countries and sub-Saharan Africa, are thought to be above 1 million. To them should be added transit migrants.

Although official figures are not available, estimates put the unemployment rate close to 30%, and affecting the most youths and women. Growth in the private sector and in foreign investment are expected to create more jobs.

Libya needs to faces important challenges that have a bearing on employment prospects, such as human resource development and capacity-building, economic diversification and participatory development.

Activities

• Employment

  • Supporting the development of a national vocational training system
  • Promoting entrepreneurship culture, through training trainers specialized in entrepreneurship and management training, using ILO training tools for micro - and small entrepreneurs.

• Social protection

  • Capacity building of ILO constituents in accessing Occupational Safety and Health (OSH) information worldwide
  • Facilitating networking with European OSH institutions on-going.