Libya’s Administrative Control Authority has revealed a critical crisis of overstaffing within the public sector, warning that the wage bill could soar to 100 billion dinars (at an exchange rate of 4.8 dinars) if unchecked, due to persistent and unsystematic hiring practices.
Addressing a meeting of the Ministers of Planning, Finance, and Higher Education, the head of the Authority, Abdullah Qadarbouh, explained that while official government appointments have been frozen since 2020, wage allocations have nonetheless spiked from 21 billion dinars in 2020 to a 67 billion dinars by the end of 2024. This dramatic increase underscores the escalating drain on public finances due to weak planning and oversight.
Experts identify unsystematic recruitment as a major impediment to Libya’s financial reform. Speaking to “Al-Araby Al-Jadeed,” labor specialist Ali Saleh argued that inflated wages relative to actual productivity present a great challenge for the government. He emphasized the need to restructure jobs, align them with labor market demands, and implement digital systems for performance monitoring and expenditure control.
Financial analyst Sabri Daou further noted that salary allocations now consume approximately 54% of total public spending for 2024, a dangerously high proportion indicative of severe imbalances in public finances. He pointed out that roughly 30% of Libyans are employed in the public sector, an exceptionally high figure by international standards, suggesting widespread disguised unemployment resulting from imprudent hiring driven by short-term political objectives rather than genuine need.
Daou added that these arbitrary hiring practices are often motivated by political considerations or attempts to bolster government support, cautioning that without fundamental reforms, this approach will only exacerbate the economic crisis and fuel inflation. Official data indicates that public sector employment in Libya reached 2.5 million by the end of June 2024, representing 31% of the total population.
With a minimum wage of 900 Libyan dinars (equivalent to 187 USD), many workers struggle with the high cost of living. Consequently, Libya faces a daunting task in reforming its administrative and financial structures. There are growing calls for more efficient employment policies and sustainable solutions to mitigate the escalating employment crisis and its detrimental economic impact.