The World Bank has published the sixth edition of its annual Liberia Economic Update, titled “From Stabilization to Inclusion – Pathways to Resilient Growth and Productive Jobs.” The report examines recent economic trends in Liberia and assesses how the private sector can be improved to create more productive jobs.
According to the update, Liberia’s private sector is currently dominated by informal, micro-sized firms that are not able to provide large-scale quality employment. The report points out that unlocking job creation potential will require support for firm growth, increased production capacity, and addressing both spatial and sectoral concentration.
Georgia Wallen, World Bank Country Manager for Liberia, stated: “Achieving sustained and inclusive growth requires confronting Liberia’s employment challenges and maintaining macroeconomic stability. 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 outlines a four-part strategy for transforming employment in Liberia. This includes encouraging labor demand through investment in agro-processing and light manufacturing; supporting firm growth with regulatory, financial, and technological assistance; modernizing the business environment with high-level coordination, an enabling legal framework, and public-private partnerships; as well as expanding labor participation with interventions focused on skills development, youth engagement, and gender inclusion.
Gweh Gaye Tarwo, Liberia Country Economist and lead author of the report said: “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 firms that offer wage employment. Aligning industrial and labor policies with spatial development priorities and value-chain potential will also be essential to drive inclusive job creation and reduce regional disparities in employment opportunities.”