Labor Market

DOI: doi.org/10.71671/ACAG-C036

The labour market across the Mediterranean region is characterised by marked heterogeneity and persistent structural disparities between its different shores. Recent data point to significant challenges, particularly with regard to youth inclusion, labour market participation, and the quality of employment. While European countries tend to exhibit more dynamic and service-oriented economic structures, other contexts continue to be affected by structural fragilities, high unemployment, and substantial levels of inactivity. The Mediterranean therefore emerges as a region shaped by shared yet differentiated challenges, calling for integrated, evidence-based policy responses aimed at fostering inclusion and sustainable development.

Overview

The labour market is analysed through the main indicators of labour force participation, employment and unemployment, providing a comparative reading of employment dynamics across the Mediterranean. The analysis highlights persistent regional and sectoral disparities, as well as gaps in labour market inclusion, identifying the key challenges and policy priorities for more sustainable and equitable growth.

  • European Union
  • Western Balkans
  • Middle East
  • North Africa
Indicators Labor force participation rate for ages 15-24, total (%) (modeled ILO estimate) Labor force participation rate, total (% of total population ages 15-64) (modeled ILO estimate) Employment to population ratio, ages 15-24, total (%) (modeled ILO estimate) Employment to population ratio, 15+, total (%) (modeled ILO estimate) Unemployment, total (% of total labor force) (modeled ILO estimate) Unemployment, youth total (% of total labor force ages 15-24) (modeled ILO estimate) Employment in agriculture (% of total employment) (modeled ILO estimate) Employment in industry (% of total employment) (modeled ILO estimate) Employment in services (% of total employment) (modeled ILO estimate) Share of youth not in education, employment or training, total (% of youth population) (modeled ILO estimate) area_code ordgeo
Countries 2024 2024 2024 2024 2024 2024 2023 2023 2023 2024
Portugal 35.4 77.8 27.9 54.8 6.5 21.2 3.0 25.0 72.1 7.9 A 1
Spain 33.1 74.6 24.1 50.8 11.4 27.0 3.6 19.9 76.5 9.9 A 2
France 42.7 73.8 35.6 51.4 7.4 16.6 2.5 19.2 78.2 10.5 A 3
Italy 24.7 66.6 19.7 46.6 6.5 20.3 3.6 26.6 69.8 12.7 A 4
Slovenia 35.7 76.7 32.4 56.4 3.7 9.4 4.0 32.2 63.8 7.2 A 5
Croatia 31.1 70.0 26.0 49.4 5.0 16.6 4.7 27.5 67.8 9.8 A 6
Greece 25.2 69.3 19.0 46.4 10.0 24.7 11.5 15.9 72.6 11.4 A 7
Malta 54.9 80.9 50.6 62.0 3.1 7.8 1.1 17.6 81.3 8.2 A 8
Cyprus 43.9 79.9 37.0 64.0 4.9 15.6 2.4 16.3 81.4 12.0 A 9
Serbia 32.8 72.4 25.4 53.0 7.2 22.7 19.2 28.2 52.6 12.4 B 10
Kosovo .. .. .. .. 10.5 21.3 .. .. .. .. B 11
Bosnia and Herzegovina 25.9 62.9 18.8 44.0 10.0 27.3 17.6 30.6 51.8 16.0 B 12
Montenegro 28.7 59.8 21.3 41.2 15.0 25.9 6.0 16.1 77.8 20.0 B 13
North Macedonia 28.2 65.9 19.7 45.3 12.3 30.3 9.3 30.2 60.5 19.1 B 14
Albania 33.6 72.0 25.2 54.5 11.5 25.1 34.9 21.2 43.9 23.6 B 15
Turkiye 46.1 60.0 38.9 49.2 8.8 15.6 14.6 27.6 57.8 22.5 C 16
Syrian Arab Republic 25.2 39.7 17.3 33.0 13.3 31.5 15.0 21.8 63.1 38.8 C 17
Lebanon 35.7 50.7 27.2 40.2 11.5 23.7 3.4 20.3 76.2 25.0 C 18
Jordan 23.6 40.9 13.8 31.5 18.0 41.7 3.2 18.3 78.4 31.6 C 19
Israel 46.7 73.8 43.9 63.0 3.6 6.1 0.8 15.6 83.6 15.1 C 20
West Bank and Gaza 30.8 47.3 19.7 34.0 31.4 36.1 6.2 32.6 61.2 28.2 C 21
Egypt, Arab Rep. 22.1 45.3 18.0 39.5 7.2 18.7 18.7 28.6 52.7 26.9 D 22
Libya 17.4 51.6 8.8 39.3 18.2 49.5 8.7 23.2 68.1 29.3 D 23
Tunisia 23.4 51.2 14.0 38.2 15.0 40.0 12.8 33.3 53.8 22.7 D 24
Algeria 22.8 44.6 16.0 36.1 11.6 29.8 9.3 30.8 59.9 20.1 D 25
Morocco 26.8 47.7 20.8 40.1 9.0 22.1 29.6 24.1 46.3 32.9 D 26

Labor force participation rate for ages 15-24, total (%) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Labor force participation rate, total (% of total population ages 15-64) (modeled ILO estimate)

  • Kosovo No data available
  • Lebanon Latest available data: 2023
  • West Bank and Gaza Latest available data: 2022

Employment to population ratio, ages 15-24, total (%) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Employment to population ratio, 15+, total (%) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Unemployment, total (% of total labor force) (modeled ILO estimate)

  • Kosovo Latest available data: 2023

Unemployment, youth total (% of total labor force ages 15-24) (modeled ILO estimate)

  • Kosovo Latest available data: 2022
  • West Bank and Gaza Latest available data: 2022

Employment in agriculture (% of total employment) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Employment in industry (% of total employment) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Employment in services (% of total employment) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Share of youth not in education, employment or training, total (% of youth population) (modeled ILO estimate)

  • Kosovo No data available
  • West Bank and Gaza Latest available data: 2022

Some highlighted topics

An analysis of the most recent labour market data across Mediterranean countries highlights several recurring and critical issues. First, a pronounced generational divide persists: young people (aged 15–24) consistently record lower employment rates and higher unemployment levels, with particularly severe conditions in North Africa and the Middle East, where youth unemployment exceeds 40% in countries such as Tunisia, Libya and Jordan.

Second, marked structural heterogeneity between the northern and southern shores of the Mediterranean remains evident. While EU countries and Israel display high labour force participation and a strong concentration of employment in the services sector, countries in the southern Mediterranean and the Balkans continue to show a relatively higher share of employment in agriculture and industry, indicating an economic transition that is still incomplete.

Finally, low levels of labour market participation persist in several MENA countries, often reflecting structural barriers related to gender, education and institutional frameworks. Taken together, these patterns point to shared yet differentiated challenges across the region, calling for targeted policies to promote youth employment, socio-economic inclusion and the transformation of productive models.

Labour force participation and employment rates

The updated 2024 data on labour force participation rates across the 26 Mediterranean countries reveal a highly heterogeneous picture, particularly for the youth population (aged 15–24). Significant disparities also emerge among the working-age population (15–64), reflecting persistent structural differences across the sub-regions of the basin.

With regard to youth labour force participation rates (15–24), the highest levels are recorded in Malta (54.9%), Israel (46.7%), Türkiye (46.1%) and Cyprus (43.9%), indicating a more robust integration of young people into the labour market. France (42.7%) also stands above the Mediterranean average. At the opposite end of the spectrum, Libya (17.4%), Egypt (22.1%), Tunisia (23.4%) and Jordan (23.6%) display particularly low levels, pointing to significant structural barriers to labour market access for younger generations, linked to educational, gender-related and institutional factors.

A similar pattern emerges when considering labour force participation rates for the population aged 15–64. The highest levels are concentrated in Mediterranean European countries, notably Malta (80.9%), Cyprus (79.9%), Portugal (77.8%) and Slovenia (76.7%), followed by Israel and France (both at 73.8%). At the lower end of the distribution are mainly North African and Middle Eastern countries, such as Syria (39.7%), Algeria (44.6%), Egypt (45.3%) and Morocco (47.7%), which are characterised by substantially lower levels of labour market participation.

Overall, labour force participation rate data highlight a clear structural divide between the northern and southern shores of the Mediterranean. While European countries and Israel exhibit high and relatively stable participation levels, labour market inclusion in North African and Middle Eastern countries—particularly among young people—remains weak, with large shares of inactive population. This pattern underscores the need for integrated policies aimed at strengthening school-to-work transitions, increasing female labour force participation, and activating NEETs (Not in Education, Employment or Training).

Figure 1 - Labour force participation rate. Years 2024 (%)

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In 2024, employment rates across the 27 countries of the Mediterranean region continue to reveal a pronounced divide between young people (aged 15–24) and the adult population (aged 15 and over), alongside substantial differences across Mediterranean Europe, the Western Balkans, the Middle East and North Africa.

Within Mediterranean Europe, Malta and Cyprus stand out for recording the highest employment levels both among young people (50.6% and 37%, respectively) and in the overall population (61.97% and 63.95%). France also displays relatively strong youth labour market integration (35.6%). By contrast, Italy (19.7%) and Greece (18.9%) remain at significantly lower levels, underscoring persistent structural weaknesses in the labour market integration of younger cohorts.

In the Middle East, Israel emerges as a positive outlier, with a youth employment rate of 43.9% and an overall employment rate of 63%. In contrast, youth labour market integration in other countries of the region remains highly constrained: Jordan (13.8%), Syria (17.3%) and Lebanon (27.2%) record very low employment levels, mirrored by weak outcomes for the total population.

The situation is even more critical in North Africa. Libya (8.8%) and Tunisia (14%) report the lowest youth employment rates, while Algeria (16%) and Morocco (20.8%) fail to reach 40% in overall employment. These figures point to a structural marginalisation of young people and a limited capacity of economic systems to generate sufficient employment opportunities.

Overall, the 2024 evidence confirms that youth inclusion remains the central challenge of Mediterranean labour markets, particularly in the Middle East and North Africa. Beyond job creation, the data highlight the need for targeted policies addressing education, vocational training and school-to-work transitions in order to achieve a durable reduction in the generational divide.

Figure 2 - Employment to population ratio. Year 2024 (%)

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Unemployment rate

The 2024 unemployment data for the Mediterranean countries reveal substantial disparities both across regions and between age groups, confirming the pronounced heterogeneity of labour markets in the area. Overall unemployment rates (aged 15 and over) vary widely. Relatively low levels are observed in Mediterranean European countries such as Malta (3.1%), Israel (3.6%), Slovenia (3.7%) and Cyprus (4.9%). By contrast, Montenegro and Tunisia (both at 15%), and particularly Libya (18.2%), record markedly higher rates, signalling persistent structural fragilities. Within Mediterranean EU countries, Spain (11.4%), Greece (10%) and France (7.4%) stand out among those facing the greatest employment challenges.

The situation deteriorates sharply when youth unemployment (aged 15–24) is taken into account, which emerges as the most critical dimension of Mediterranean labour markets. In several countries, youth unemployment reaches extremely high levels: Libya (49.5%), Tunisia (40.1%), Jordan (41.7%) and Syria (31.5%) point to a genuine generational emergency, with a large share of young people excluded from employment. Youth unemployment also remains elevated in the Western Balkans, with significant levels in North Macedonia (30.3%), Bosnia and Herzegovina (27.3%) and Montenegro (25.9%). At the opposite end of the distribution, Israel (6.1%), Malta (7.8%) and Slovenia (9.4%) record the lowest rates, reflecting more effective school-to-work transitions and youth labour market integration mechanisms.

Overall, the Mediterranean region appears highly polarised. Labour markets in Mediterranean Europe and Israel display a greater capacity to absorb labour supply, whereas in many Middle Eastern and North African countries—and, to a lesser extent, in the Balkans—youth unemployment constitutes a structural constraint on economic and social development. These findings reinforce the urgency of targeted active labour market policies focused on education and training, school-to-work transitions, and inclusive economic growth, with particular attention to younger generations.

Figure 3 - Unemployment rates in ages 15-24 and 15 years and over. Year 2024 (%)

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Sectoral distribution of employment

In 2023, the sectoral distribution of employment across the 27 countries of the Mediterranean region confirms the pronounced structural heterogeneity of labour markets in the area. The services sector clearly dominates employment across the region, particularly in Mediterranean European countries and Israel, where it accounts for well over 75% of total employment. Especially high shares are observed in Israel (83.6%), Cyprus (81.4%), Malta (81.3%), France (78.2%), Spain (76.5%) and Jordan (78.4%), reflecting an advanced process of economic tertiarisation.

By contrast, industry plays a relatively more prominent role in the Western Balkans and in selected North African countries. Slovenia (32.2%), Tunisia (33.3%) and Algeria (30.8%) record the highest industrial employment shares, pointing to productive structures that remain closely linked to manufacturing and more traditional industrial activities.

Although agriculture has become marginal in the more advanced economies—accounting for less than 5% of total employment in Israel, France, Spain, Portugal and Italy—it continues to represent a key pillar of employment in several lower-income countries. In Albania (34.9%), Morocco (29.6%), Egypt (18.7%), Bosnia and Herzegovina (17.6%) and Serbia (19.2%), the primary sector still absorbs a substantial share of the labour force, indicating an incomplete process of structural transformation.

Overall, the sectoral composition of employment reveals a clear geographical and development gradient across the Mediterranean. EU countries and Israel exhibit a strong specialisation in services, while more balanced employment structures—or a continued reliance on agriculture and industry—persist in the southern and eastern Mediterranean. This asymmetry underscores the need for differentiated policy strategies aimed at economic diversification, productive upgrading and labour market inclusion, particularly in contexts where traditional sectors remain dominant.

Figure 4 - Distribution of employment in sectors by macro-region. Year 2023 (% total employment)

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Young people not in education, employment or training (NEETs)

The indicator of young people not in education, employment or training (NEET), based on modelled estimates produced by the International Labour Organization (ILO), provides a crucial lens through which to assess the structural fragilities and socio-economic asymmetries of the Mediterranean region. Its evolution over time captures not only the effects of cyclical economic, financial and health-related shocks, but, more fundamentally, the capacity of education systems and labour markets to support younger generations in their transition to adulthood. In a context marked by deep territorial, demographic and institutional divides, the NEET phenomenon assumes a systemic relevance, emerging as an advanced indicator of social exclusion, development sustainability and potential future instability, with markedly differentiated dynamics across the northern, southern and eastern shores of the basin.

In 2024, the indicator confirms a pronounced territorial polarisation across the Mediterranean, reflecting persistent structural inequalities in education systems, labour markets and opportunities for youth inclusion.

In Mediterranean Europe, NEET levels remain relatively contained but heterogeneous. Portugal and Slovenia record values below 8%, while Spain and France stand at around 10%. Italy displays one of the highest levels within the Mediterranean EU area (approximately 12.7%), pointing to enduring weaknesses in school-to-work transitions and to labour market segmentation that disproportionately affects young people.

In the Western Balkans, NEET rates are on average higher than in Mediterranean EU countries, reflecting more fragile labour markets and a limited capacity to absorb youth employment, albeit with notable cross-country variation. In this context, youth emigration plays a significant role: in some cases, relatively stable or declining NEET levels may reflect migratory selection processes rather than genuine improvements in domestic labour market integration.

In North Africa (Western MENA), the most critical levels are observed across the entire Mediterranean basin. Tunisia and Algeria exceed 20%, while Morocco reaches extremely high levels (above 30%), pointing to a structural condition of youth exclusion that combines unemployment, inactivity and a pronounced mismatch between education and labour demand. In these contexts, rising educational attainment has not translated into adequate employment absorption, fuelling over-education and frustrated expectations and contributing to the expansion of the NEET population.

In the Middle East, the NEET phenomenon is characterised by widespread criticalities and strong heterogeneity. The highest rates are recorded in Syria (38.8%) and Jordan (31.6%), reflecting the combined effects of prolonged instability, economic crises and the limited capacity of productive systems to generate qualified employment. Lebanon (25.0%) and Türkiye (22.5%) also register elevated levels, partly attributable to a persistent mismatch between acquired skills and labour demand. Israel, while recording more moderate values (15.1%), nevertheless exhibits a non-negligible share of young people facing exclusion.

Overall, the analysis confirms that NEETs in the Mediterranean represent not merely a cyclical phenomenon, but a structural signal of generational vulnerability. In several contexts—particularly in the Balkans and the southern Mediterranean—the dynamics of the indicator are shaped both by migration processes and by the misalignment between education systems and models of productive development. This reinforces the interpretation of NEETs as a synthetic measure of the difficulties faced by younger generations in integrating into labour markets and society, and as a key indicator for assessing the medium- to long-term economic and social sustainability of the region.

Figure 5 - Share of youth not in education, employment or training, total. Year 2024 (% of youth population)

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NEETs in the Mediterranean between 2005 and 2024: a long-term perspective

A diachronic analysis of the NEET indicator in the Mediterranean reveals divergent trajectories and persistent territorial asymmetries, confirming the structural nature of youth exclusion in several parts of the basin. Over the long term, changes in the indicator cannot be interpreted simply as responses to cyclical economic fluctuations; rather, they reflect different institutional regimes governing labour markets, education systems and school-to-work transition mechanisms.

Over the period 2005–2024, Mediterranean Europe displays an overall cyclical but broadly stable pattern. The global financial crisis of 2008–2013 represents a clear turning point, with a sharp increase in NEET rates—particularly in Italy, Spain and Greece—linked to the collapse of youth employment and the disruption of labour market entry pathways. From 2015 onwards, against a backdrop of gradual economic recovery and a strengthening of active labour market policies, the indicator shows a progressive decline, only temporarily interrupted by the COVID-19 pandemic in 2020. By 2024, NEET levels are lower than those observed on the southern and eastern shores of the Mediterranean, but remain higher than in north-central Europe, signalling persistent structural weaknesses in school-to-work transitions.

In the Western Balkans, NEET rates remain consistently high throughout the entire period. Unlike Mediterranean Europe, major international crises do not generate sharp breaks, but rather reinforce an already structural condition of labour market fragility. The modest reductions observed in some countries after 2015 are slow and uneven, and are accompanied by strong youth emigration flows, which contribute to making the NEET indicator only partially responsive to domestic economic cycles. In 2024, levels remain medium to high, reflecting weak labour markets and vocational education and training systems that are poorly integrated with labour demand.

In North Africa (Western MENA), the indicator displays the greatest persistence over time. Between 2005 and 2024, NEET levels remain structurally high, with only marginal declines in a few countries. The political and economic disruptions following 2011 mark a significant breakpoint, which does not translate into a reduction of the indicator but rather into its stabilisation at elevated levels. In this context, NEET rates capture not only the effects of repeated crises, but above all the limited capacity of productive systems to absorb a growing youth labour force, despite rising levels of educational attainment.

The Middle East exhibits more volatile dynamics. In countries affected by conflict or prolonged instability, such as Syria, the time series shows a sharp and lasting increase in NEET rates, signalling a regime shift in labour market functioning. In relatively more stable contexts, such as Israel and Türkiye, trends are more contained; nevertheless, NEET levels remain high by international standards, pointing to a form of structural generational vulnerability.

Figure 6 - Share of youth not in education, employment or training, total. Year 2005-2024 (% of youth population)

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Overall, the long-term evidence confirms that the NEET indicator in the Mediterranean is structural in nature and characterised by slow-moving dynamics, responding more to changes in development models, institutional frameworks and mechanisms of inclusion than to short-term cyclical fluctuations. The data reveal a threefold divide: between the northern and southern shores of the Mediterranean; between relatively stable contexts and regions affected by prolonged crises; and between settings where youth exclusion tends to decline cyclically (Mediterranean Europe) and those where it remains structurally persistent (North Africa and the Middle East).

Looking ahead, the NEET indicator emerges as a key analytical tool for assessing the social and demographic sustainability of the Mediterranean region and for guiding integrated policies on education, employment and youth inclusion, tailored to the specific characteristics of different territorial contexts.

Quality of employment and economic inclusion

Alongside traditional quantitative indicators—employment, unemployment and inactivity—an assessment of labour markets in the Mediterranean requires closer attention to the quality of employment. In contexts characterised by strong structural dualisms, being employed does not necessarily imply economic inclusion, income stability or access to social protection. This issue is particularly pronounced in the economies of North Africa and the Middle East, where a significant share of employment is concentrated in informal or semi-formal segments, often lacking contractual safeguards, job continuity and access to welfare systems. In such settings, low unemployment rates may coexist with high levels of employment vulnerability, unpaid family work and underemployment, especially among young people and women.

Even in Mediterranean European countries, where employment is largely formal, job quality remains a critical concern. Labour market segmentation between insiders and outsiders, the widespread use of temporary contracts and the prevalence of involuntary part-time work contribute to fragmented employment trajectories, particularly for younger generations. In this context, the presence of working poor and low-paid workers highlights that access to employment does not automatically translate into adequate economic well-being or prospects for social mobility. The combination of contractual precariousness, low wages and limited opportunities for career progression generates persistent forms of insecurity, reflected in elevated NEET rates, youth emigration and delayed transitions to economic autonomy.

Overall, the analysis suggests that the fragilities of Mediterranean labour markets extend beyond a simple shortage of jobs and increasingly concern the structure and quality of available employment. Integrating quantitative indicators with a qualitative perspective allows for a more nuanced understanding of asymmetries across the Mediterranean and supports an interpretation of employment not merely as a statistical outcome, but as a central component of economic inclusion, social cohesion and long-term development sustainability.

Population and Society > Labor Market