Libya launches new plan to tackle widespread youth unemployment

Libya’s Ministry of Economy and Trade has announced a new scheme which aims to combat youth unemployment and strengthen the fledgling private sector in the North African nation according to the Moroccan government-friendly outlet North Africa Post on September 29^th.

The scheme has been launched as the “Entrepreneurs Skills and Solutions Project”, which prioritises targeted skills development helping to elevate youth employment in the wake of a youth unemployment crisis engulfing Libya.

As of January 2025, approximately 51 percent of Libyan youth, encompassing 1.1 million people, are unemployed. These statistics are fuelled by continuous instability which has deterred foreign investment, and an over-reliance on state-run sectors like oil and gas which are not labour-intensive.

This new initiative, unveiled during a workshop in the capital of Tripoli, is focused on equipping students and graduates with practical skills in the modern green and blue economy, in addition to aligning their education with current and future labour market demands to create a more coherent link between study and employment.

Furthermore, the initiative aims to utilise the benefits of AI to foster innovation and economic growth. The Minister of Economy Mohamed Al-Hwej emphasised the need for close coordination with the Prime Minister’s “1,000 Entrepreneurs and 1,000 Projects” initiative for Libya’s broader economic strategy to succeed.

Libya has been attempting to position itself as a renewed economic hub in recent times, hoping to capitalise on the strength of their hydrocarbons sector and build on the projected GDP growth of 14.3 percent for 2025.

After a period of isolation following the ousting of Muammar Gaddafi in 2011 and the subsequent civil war, major oil giants are steadily returning to Libya and reopening their offices in Tripoli.

However, whilst Libya has made incremental progress in improving international economic cooperation and ensuring stable growth, there is still widespread concern domestically that this progress can translate into prosperity for Libyan people. The Tripoli-based government will hope their broader strategy will help in diversifying Libya’s strengths.