Liberia’s economy continues to struggle in creating quality employment opportunities despite moderate signs of stabilization, according to the World Bank’s Sixth Liberia Economic Update released Tuesday.
The report, titled “From Stabilization to Inclusion- Pathways to Resilient Growth and Productive Jobs,” highlights persistent structural weaknesses that limit the country’s ability to generate productive and sustainable jobs.
The report finds that Liberia’s private sector remains dominated by informal and micro-sized firms with low employment capacity, hindering broader economic transformation.
It notes that the failure to create quality jobs has kept a large share of the population in vulnerable employment, especially among the youth and women.
“Achieving sustained and inclusive growth requires confronting Liberia’s employment challenges and maintaining macroeconomic stability,” said Georgia Wallen, World Bank Country Manager for Liberia. “Structural weaknesses in the labor market and the private sector continue to constrain the country’s growth potential. Tackling these barriers is essential not only for reducing poverty but also for sustaining macroeconomic gains through a stronger domestic tax base, greater resilience to external shocks, and enhanced social cohesion.”
The report proposes a four-pronged strategy to unlock employment potential: stimulating labor demand through investment in agro-processing and light manufacturing; supporting firm growth through improved regulatory, financial, and technological systems; modernizing the business environment with coordinated reforms and stronger public-private partnerships; and expanding labor participation through targeted interventions focused on skills development, youth, and gender inclusion.
“Transformation of the country’s employment status should be complemented by long-term investments in education and human capital, improved market access for local firms, and targeted incentives for those offering wage employment,” said Gweh Gaye Tarwo, World Bank Country Economist and lead author of the report. “Aligning industrial and labor policies with spatial development priorities and value-chain potential will be essential to drive inclusive job creation and reduce regional disparities.”
The Liberia Economic Update calls on policymakers to shift focus from short-term stabilization efforts toward building an inclusive and resilient economy capable of generating decent, productive jobs for all Liberians.
