Lebanon's renewed conflict has devastated the country's private-sector labor market, leaving one in three workers out of a job and driving average labor income down by more than 40%, according to a new report by the International Labour Organization (ILO).

The report, titled Lebanon's Labour Market in Crisis: Assessing the Impacts of Renewed Conflict and Regional Instability – A Focus on Private Sector Workers, paints a stark picture of the economic fallout from the latest escalation of hostilities, highlighting widespread job losses, shrinking earnings and growing hardship among vulnerable households.

Based on a survey conducted in May 2026, the study aims to provide evidence to support emergency measures designed to protect employment, incomes, labor rights and livelihoods as Lebanon grapples with the consequences of renewed violence.

The survey, carried out in partnership with the General Confederation of Lebanese Workers (CGTL) and the Federation of Employees' and Workers' Unions in Lebanon (FENASOL), covered 2,485 private-sector workers who had been employed before fighting resumed in March 2026. Participants included both employees and self-employed workers across all sectors and governorates.

According to the findings, 33% of respondents were no longer working when surveyed. Of those, 28.2% were unemployed, while 4.7% had left the labor force altogether.

The impact was particularly severe in southern Lebanon, where areas most affected by hostilities recorded the highest levels of job destruction. Among residents of Nabatieh Governorate, 76.5% had lost their jobs, while the figure reached 43.2% in South Lebanon Governorate.

However, the report stressed that the economic shock extended far beyond frontline communities. Workers in other regions also experienced job losses and declining opportunities as businesses struggled with weaker demand, lower economic activity, inflation and broader market disruptions.

Displacement emerged as one of the strongest predictors of unemployment.

More than two-thirds of workers who remained displaced were no longer employed. At the time of the survey, 37.4% of respondents were still displaced, while another 14.2% had been forced to flee during the conflict but had since returned home.

"The current crisis in Lebanon is not only destroying buildings and infrastructure, but also destroying jobs, incomes and the fragile foundations of many people's lives," said Ruba Jaradat, the ILO's Regional Director for Arab States.

"The ILO is working with its constituents and partners to support labour market recovery in Lebanon. That means protecting workers, supporting income and employment, strengthening social protection, producing reliable and timely data and analysis, helping enterprises retain workers, and ensuring that the most vulnerable are not pushed further into informality, poverty or exclusion. Humanitarian assistance saves lives, but decent work and social protection help people preserve dignity, rebuild livelihoods and recover," she added.

The report found that workers who were already vulnerable before the conflict suffered the greatest losses.

Among persons with disabilities, 71.4% were without work, the highest rate recorded. Women also experienced disproportionately high unemployment, with 44.3% out of work, followed by young people aged 15 to 24 at 42.4%. Syrian refugees faced a jobless rate of 39.4%, while 37.7% of workers employed informally also lost their jobs.

Employment losses were likewise more common among workers without written contracts, those with lower levels of education and employees of smaller businesses.

For those who managed to keep their jobs, earnings still declined sharply.

The report estimates that average labor income among employed workers fell by 14.8%. When complete income losses among those who became unemployed are factored in, average labor income across all surveyed workers dropped by 40.4%.

Workers who succeeded in finding new employment often accepted significantly worse conditions. On average, they earned 30.7% less than before the conflict, with most moving into informal work or self-employment.

The economic strain has forced many households to rely on personal savings to survive.

Savings were the most frequently used coping mechanism, while more than 40% of Lebanese, Syrian and Palestinian workers reported postponing loan repayments or delaying payment of household bills. Many families also reduced spending on food, reflecting mounting pressure on household finances and growing concerns over food security.

Looking ahead, respondents identified access to stable employment as their most urgent priority.

Nearly half of those surveyed, 45.5%, said assistance in securing stable jobs was their greatest need, while 37.7% called for support to obtain higher or more reliable incomes.

The ILO said Lebanon's recovery would require a combination of immediate humanitarian assistance and labor market interventions alongside longer-term policies aimed at creating jobs, expanding social protection, rebuilding businesses and promoting decent work.

Among its recommendations are employment-intensive recovery programs, targeted wage subsidies, emergency assistance for women, persons with disabilities, self-employed workers and micro, small and medium-sized enterprises, broader social protection coverage, legal assistance for migrant domestic workers and stronger labor market governance.

Over the longer term, the organization called for improved labor market data systems, activation of the National Employment Office, local economic development initiatives, expanded vocational and skills training, gradual formalization of employment, unemployment protection and the adoption of a comprehensive national employment policy.