The economic landscape of Afghanistan labor market is defined by immense resilience, structural challenges, and untapped potential. With a workforce of approximately 9.13 million people active as of 2024, understanding the dynamics of employment, skills gaps, and the crucial role of international support is key to grasping the nation’s economic reality.

The Current Landscape: Resilience Amidst Rising Costs

Despite the shadow of high unemployment, a fascinating trend is emerging: wages for both skilled and unskilled workers are rising. This counterintuitive increase often signals a critical mismatch between skills and job opportunities—demand is high, but the available talent pool may not align with employer needs.

Pillars of Support: The ILO’s Vital Role

Since 2003, the International Labour Organization (ILO) has been a foundational partner, actively shaping policy and providing essential support across several crucial areas:

Policy & Law: Driving crucial labor law reform and shaping effective employment policies.

Capacity Building: Investing heavily in vocational training to bridge the skills gap.

Social Protection: Working diligently towards child labor reduction and providing vital livelihood support for returnees.

The Core Challenges Hindering Growth

To achieve sustainable growth, the following structural obstacles must be addressed:

Pervasive Unemployment: This issue disproportionately affects the youth demographic and, critically, women in the workforce.

The Informal Economy: A staggering number of workers operate within the informal sector, lacking the fundamental safety nets of legal protections, benefits, and secure contracts.

Human Capital Deficit: Restricted access to quality education and skill development limits the overall productive capacity of the nation’s aging population. 

Growth Vectors: Where Opportunity Lies

Even amidst these challenges, significant avenues for future employment and development are emerging:

Agriculture & Rural Development: As the single largest employer, investment in modernizing this sector holds the greatest potential for mass employment.

Skills Uplift via Vocational Training: Expanding targeted vocational training programs is the most direct route to improving worker employability.

Nurturing Entrepreneurship: Support for small and medium-sized enterprises (SMEs), particularly in urban centers, is fueling grassroots economic activity.

This detailed overview highlights that while Afghanistan’s workforce faces complexity, strategic investment in skills and formalization will be the key to unlocking its economic future.