Human
Development

Incentivizing Private Sector Employment

Development Pillars / Human Development / Incentivizing Private Sector Employment

Pillar Objectives

Transforming Libya into a diversified economy will require increased private sector employment participation. However, the labor market remains highly segmented with the majority of Libyans employed in the public sector. Socio-cultural factors and the perception of more favorable conditions of employment offered by the public sector have led to reluctance in joining the private sector. Preferences for public sector jobs coupled with limited comparable opportunities in the private sector have precipitated a crisis in which the government is unable to create suitable employment opportunities to absorb our youthful population entering the labor market. Ihya Libya Vision 2023 envisions increased and diversified participation of Libyans in the labor market through investment in education and training, incentives for private companies to hire Libyans, and measures to encourage more women to enter the labor force. Initiatives that reduce barriers to entrepreneurship will also encourage Libyans to invest in establishing their own businesses.

Next Objective:

Providing Quality Healthcare To All

Transformation Projects for Incentivizing Private Sector Employment

Transformation Project Profile

Implementing the proposed national training fund to provide a framework for developing workforce skills in key sectors and aligning skills development with municipal development plans is vital for lowering youth unemployment. The success of this initiative will largely depend on the participation of all public and private sector employers in setting aside funds for improving the skills of Libyans in priority economic sectors.


Transformation Project Objective

  • Fund skills development to increase municipal competitiveness, growth, and development
  • Develop critical skills amongst youth to promote participation in key economic sectors and link national skills formation with economic development and SME growth
  • Boost the local Libyan training market
  • Reduce unemployment among women, youth, and people with disabilities

Transformation Project Profile

The relatively high cost of Libyan workers compared to foreign manpower results in private sector reliance on imported labor. Socio-cultural factors and the perception of more favorable conditions of public sector employment have also led to reluctance in joining the private sector. To create employment opportunities to absorb our youth, existing quotas for employing Libyans in the private sector need to be more effectively monitored and enforced.

Transformation Project Objective

  • More effectively monitor and enforce labor market quotas on the proportion of Libyans employed by private companies
  • Ensure sufficient employment of Libyans in infrastructure development projects
  • Ensure that private gains in the oil and gas sector are offset by the transfer of knowledge and skills to Libyans

Transformation Project Profile

Removing barriers to women’s employment will ensure a high skilled Libyan workforce. While the educational attainment of women has surged, their participation in the labor market lags behind males. Measures that lower attitudinal barriers to women’s employment in general and in private companies must be pursued. Women also face barriers to employment that confine them to certain sectors and contribute to an early exit from the labor market which must be addressed.

Transformation Project Objective

  • Increase the number of women in leadership and political decision-making positions
  • Reduce the stereotyping of women’s roles and responsibilities.
  • Encourage the entrepreneurial development of women by establishing dedicated business incubators for female-owned businesses
  • Expand access to flexible working programs to support the work-life balance of working mothers

Transformation Project Profile

Libyan employers frequently complain of a mismatch between the skills required for their businesses and the skills available in the national workforce. One common international approach to close this gap is conducting national skills survey that probes which skill business establishments require and how well new entrants to the labor force and existing employees meet skills needs.

Transformation Project Objective

  • Assess unmet quantitative supply of workers with particular skills and qualitative skills deficiencies amongst existing employees
  • Introduce targeted training programs and support programs for firms to upskill staff
  • Support the implementation of education and training system reforms to ensure employers have access to adequate quantities and types of skills
  • Support evidence-based policy planning by ensuring that resources are allocated to education and training programs that help employers meet their skill needs

Transformation Project Profile

While there has been a notable rise in the enrollment of women in higher education, the female labor force is generally employed in public administration, education, and human health and social work. Socio-cultural perceptions concerning female labor market participation, educational policies, and labor market features that deter women from working in more diverse sectors need to be addressed.

Transformation Project Objective

  • Counter entrenched ideas about what professions women should have with public awareness campaigns
  • Conduct a gender audit of scholarship programs to ensure they do not reinforce gender stereotypes and occupational sorting
  • Incent adoption of innovative employment policies that may attract women employees such as mentorship programs and flexible work modalities