ESCWA Publication: E/ESCWA/CL2.GPID/2025/TP.4
Country: Federal Republic of Somalia
Publication Type: Information material
Cluster: Gender Justice, Population and Inclusive Development
Focus Area: Gender equality, Inclusive development, Future of employment
Initiatives: Reducing inequalities, Job creation, Women’s economic empowerment
SDGs: Goal 5: Gender Equality, Goal 8: Decent Work and Economic Growth, Goal 10: Reduced Inequalities
Keywords: Economic conditions, Educational policy, Employment, Informal sector, Labour market, Labour statistics, Skills development, Somalia, Technical cooperation, Unemployment, Women's employment, Youth employment
Elevating the talent pool in Somalia: A labour market analysis
June 2025
The labour market in Somalia reveals a complex landscape, characterized by high unemployment rates, significant informal employment and a substantial skills mismatch exacerbated by ongoing political instability and economic challenges. This report undertakes a comprehensive analysis of the Somali labour market, leveraging data from the ESCWA Skills Monitor, ILO and the Somali labour force survey to investigate the characteristics and dynamics influencing labour force participation. With only 34 per cent of the population engaged in the labour market, the report highlights demographic trends, including a rapidly growing youth demographic, and the urgent need for targeted educational interventions. The agricultural sector, despite its economic dominance, shows declining employment shares, while informal employment remains pervasive across all sectors, undermining workers’ rights and economic stability. The analysis identifies a critical need for policies aimed at bridging the skill gap between labour supply and demand, enhancing educational access, and promoting entrepreneurship, particularly among women and young people.
This report seeks to guide policymakers and stakeholders in fostering a resilient and inclusive labour market capable of realizing the economic potential of Somalia. The recommendations emphasize the importance of investment in education and skills development to stimulate sustainable economic growth and job creation.
Related content
Gender equality
, Inclusive development
, Future of employment
,
The labour market in Somalia reveals a complex landscape, characterized by high unemployment rates, significant informal employment and a substantial skills mismatch exacerbated by ongoing political instability and economic challenges. This report undertakes a comprehensive analysis of the Somali labour market, leveraging data from the ESCWA Skills Monitor, ILO and the Somali labour force survey to investigate the characteristics and dynamics influencing labour force participation. With only 34 per cent of the population engaged in the labour market, the report highlights demographic trends, including a rapidly growing youth demographic, and the urgent need for targeted educational interventions. The agricultural sector, despite its economic dominance, shows declining employment shares, while informal employment remains pervasive across all sectors, undermining workers’ rights and economic stability. The analysis identifies a critical need for policies aimed at bridging the skill gap between labour supply and demand, enhancing educational access, and promoting entrepreneurship, particularly among women and young people.
This report seeks to guide policymakers and stakeholders in fostering a resilient and inclusive labour market capable of realizing the economic potential of Somalia. The recommendations emphasize the importance of investment in education and skills development to stimulate sustainable economic growth and job creation.
