Monrovia, Liberia – An alarming report from the U.S. Department of State reveals that an estimated four out of five Liberian workers are engaged in “vulnerable” or “informal” employment, leaving them exposed to unsafe working conditions and lacking essential rights.
An Estimated Four Out of Five Liberian Workers Are Engaged in “Vulnerable” or “Informal” Employment according to the U.S. 2024 Department of State Climate Investment Report.
This statistics highlights a persistent issue in Liberia’s labor market, where approximately 90 percent of the population operates outside the protection of labor laws, according to the World Bank.
The informal sector jobs are across a variety of fields, including agriculture, artisanal mining, street vending, rock crushing, and domestic work. Workers in these areas often endure harsh conditions without access to basic protections or benefits, exacerbating their vulnerability.
The Ministry of Labor attributes the prevalence of informal employment to a struggling private sector unable to generate sufficient job opportunities. With a functional literacy rate below 50 percent, many Liberians, particularly in rural areas, lack the vocational or technical skills necessary to secure formal employment, complicating the nation’s economic recovery.
The report also reveals that women are particularly affected, with female market vendors facing significant obstacles, including limited access to credit, inadequate training, and rampant harassment. In response, the government has initiated efforts through the Bureau of Small Business Administration to formalize businesses run by women, aiming to improve their economic standing and access to resources.
Liberia’s 2015 Decent Work Act promotes the employment of Liberian citizens and mandates that foreign companies hire a percentage of local workers. However, foreign businesses often struggle to find adequately skilled local labor. The Act also guarantees fundamental worker rights, including the right to form unions and bargain collectively.
Despite these protections, challenges persist. Child labor remains prevalent, particularly in extractive industries, and the Ministry of Labor lacks a robust inspection system to address violations of labor rights. Recent strikes by workers, such as those at ArcelorMittal Liberia, highlight ongoing disputes over wages and working conditions.
In response to these challenges, the Ministry of Labor has launched an online platform for foreign work permit applications, aiming to streamline compliance with labor regulations. Yet, observers note that without adequate enforcement and support, the informal employment crisis in Liberia is likely to continue, leaving millions of workers without necessary protections.
The report emphasizes that as Liberia navigates its economic landscape, the urgent need for comprehensive labor reforms remains clear. Addressing the challenges of the informal sector is essential for fostering a safer, fairer, and more inclusive economy for all Liberians.
The report highlighted that companies in Liberia are required to adhere to International Financial Reporting Standards (IFRS); however, enforcement of national laws and international standards is inconsistent.
There are no systematic oversight mechanisms to ensure compliance, and accounting, legal, and regulatory procedures often lack transparency, according to the report.
The report pointed out that despite a Freedom of Information Law enacted in 2010, access to government records remains challenging. Overlapping responsibilities among government ministries result in inconsistent law application, and officials sometimes avoid complying with established laws regarding foreign investment.
Liberia is a member of the United Nations, the African Union, ECOWAS, and the Mano River Union.
The report disclosed that the Liberia Revenue Authority is working to standardize customs and tariff systems, moving from GST to VAT under the ECOWAS Common External Tariff, and the country is also a member of the World Trade Organization.
Liberia’s legal system operates under common law alongside local customary law, which can lead to conflicting decisions, as highlighted in the U.S. Department of State 2024 Climate Investment Report.
Although the judiciary is intended to be independent, reports indicate frequent executive interference.
The Commercial Court addresses financial and contractual disputes, but delays and corruption hinder access to justice, impacting the business environment and investment confidence.
Regulations governing foreign investment include the Investment Act and various procurement laws.
There have been no major recent judicial decisions affecting foreign direct investment, and the government lacks a centralized resource for investment laws; however, a World Bank project aims to address this, the report pointed out.
The Ministry of Commerce and Industry reviews trade transactions for competition concerns, referring unresolved issues to the Ministry of Justice. However, Liberia lacks specific antitrust laws, and there have been no significant competition cases reported recently.
The Liberian Constitution permits government expropriation of property for public purposes, requiring just compensation. The Investment Act outlines legal expropriation circumstances, providing protections against nationalization for foreign enterprises. Liberia is also a signatory to the Multilateral Investment Guarantee Agency Convention.
The Liberian Constitution permits the government to expropriate property for “national security issues or where public health and safety are endangered, or for any other public purposes.”
According to the report, the government must pay just compensation, and landowners may challenge the expropriation in court.
“When property taken for a purpose is no longer used for that purpose, the former owner has the right of first refusal to reacquire the property,” the report stated.
Liberia is a signatory to various climate agreements, including the Paris Agreement, and has committed to reducing greenhouse gas emissions significantly by 2030.
However, the government lacks comprehensive tax incentives or policies to support clean energy investments.
According to the report, corruption remains a significant barrier to progress.
Although laws exist to combat corruption, enforcement is weak, and many officials evade accountability.
Reports of extortion and bribery by government officials are common, further deterring foreign investment. Recent sanctions by the U.S. Treasury against several Liberian officials underscore the gravity of the issue, yet investigations remain limited.
Since the end of civil wars in 2003, Liberia has experienced relative peace, with recent elections deemed credible by observers.
However, challenges such as land disputes and high youth unemployment pose risks to stability.
The media landscape, while vibrant, faces threats of violence against journalists.
As Liberia confronts these interconnected challenges, there is an urgent need for comprehensive labor reforms to ensure a fair and equitable economy that protects the rights of all workers.
[11:29 AM, 9/20/2024] +231 88 817 8084: Two last stories. Please start now and take your time to read carefully and match photos
