Labor market in Sierra Leone

Agriculture accounts for more than half of employment in Sierra Leone. Mining produces roughly one quarter of economic output but employs about 1% of workers, so its economic importance does not translate into a large number of jobs. Many people earn income through self-employment, household businesses, petty trade, transport, farming, tourism, hospitality or informal services. Underemployment is widespread, which means that an unemployment rate alone does not show how much work or income people can actually obtain. The 2022 Census of Business Establishments recorded 165,514 establishments and 235,413 workers. About 70.82% of establishments were classified as informal irregular businesses or bafas, while 17.16% were formal regular and 11.96% formal irregular. Around two thirds of businesses had only one or two workers, and about 91% were sole proprietorships. Among establishments with at least one paid employee, 91.62% were sole proprietorships or informal businesses without a formal company structure. These figures explain why formal vacancies represent only part of the labor market. Trade was the largest regular business sector, with 34,103 establishments, or 70.6% of regular businesses. Services accounted for 15.8%, production for 13.4% and construction for about 0.2%. Informal trade, transport, tourism, hospitality and small household enterprises absorb many workers. Manufacturing remains small and generally low-productivity, with low pay in many roles. Growth and exports remain concentrated in mining and agriculture, while economic diversification is limited. Jobs and businesses are concentrated geographically. The Western Area, including Freetown, had 52,686 establishments, or 31.83% of the national total, and the Western Area Rural district had another 19,380. Kenema, Bombali, Bo, Tonkolili, Kailahun, Port Loko and Kono also had substantial business activity. By workers, the Western region accounted for 66.11%, compared with 10.09% in the Eastern region, 9.46% in the Southern region, 8.79% in the Northern region and 5.55% in the North-Western region. Rural areas rely more heavily on agriculture, self-employment and informal activities, while formal and more productive jobs are concentrated around Freetown and the Western Area. The main formal channels for job information include the Labour and Employment Directorate of the Ministry of Employment, Labour and Social Security, commonly known as MELSS, and its Central Employment Exchange. MELSS registers job seekers, provides vocational and career guidance and supports the Labour Market Information System, or LMIS. The LMIS offers free vacancy searches, daily postings, a CV builder and direct contact with public, private and non-governmental employers. It does not cover the entire labor market because it is more focused on administrative and formal-sector information. Under section 22 of the Employment Act 2023, employers must report vacancies to the Commissioner. Informal access works differently. People often find work through family and community contacts, direct approaches to businesses, apprenticeship arrangements, household enterprises or their own trading and farming activities. This arrangement may provide income without a written contract, regular payroll or reliable social protection. A vacancy listed through LMIS therefore cannot be treated as a complete picture of available work in Sierra Leone. Education and skills follow several pathways. The Ministry of Technical and Higher Education, or MTHE, oversees higher education and technical and vocational education and training, known as TVET. People may study at a university or other tertiary institution, attend a TVET institute or Government Technical Institute, learn through workplace training or apprenticeship, or acquire skills informally. The National Council for Technical, Vocational and Other Academic Awards, or NCTVA, conducts examinations and supports accreditation, validation and certification. National Technical Certificates, National Vocational Certificates, Advanced National Vocational Certificates and diplomas form local TVET pathways. The Sierra Leone National Qualifications Framework for TVET, together with recognition of prior learning and credit accumulation and transfer arrangements, is developing, but certified qualifications and practically acquired skills are not yet fully interchangeable. Only 21% of formal private firms reported offering formal training in the 2023 Enterprise Survey, and the match between training supply and employer demand remains weak. Pay varies sharply by sector, formality, occupation, productivity, location and experience. Current reliable nationwide monthly wage and regional tariff data are not available. Men earn about 30% more than women according to the Decent Work Country Programme II, while women hold about 27% of formal jobs. The Employment Act 2023 provides for equal remuneration for work of equal value and a minimum-wage entitlement for workers. A national minimum wage is provided for in law, but a current amount could not be reliably verified in the available primary sources. Wage deductions are lawful only in permitted circumstances. Formal employment also affects social security. Employers must register with the National Social Security and Insurance Trust, or NASSIT, for permanent, temporary, seasonal, casual, probationary and provisional workers up to age 55. Self-employed workers, farmers, fisherfolk and informal workers can also register, although participation outside formal employment is not automatic. The Employment Act generally applies to employers and workers, with specified exclusions for uniformed members of the Armed Forces, Police, Fire Force and Correctional Service; civilian workers are not excluded by that rule. Contracts may be oral or written. A casual worker may work for up to six months, and a worker employed by the same employer for more than six months must be treated as a permanent worker when a vacancy exists. MELSS also handles trade-union registration and monitoring, occupational safety and health matters, labor disputes and child-labor enforcement. Foreign workers face additional requirements. Sierra Leone's local-first employment rule gives Sierra Leonean workers priority where suitable skills are available. An employer seeking a foreign expert must show a local skills shortage and provide a training and succession plan. The Work Permit Act 2023 and its electronic work-permit system regulate foreign workers, while the Overseas Employment and Migrant Workers Act 2023 provides the legal framework for safer and more orderly overseas recruitment. The MELSS Migration Unit coordinates overseas employment and worker safety. Work-permit fees depend on the applicable regulation, and no single current fee or standard processing time could be reliably verified. The working-age population grew by about 3.4% annually between 2001 and 2021. Policy planning estimates that around 75,000 new jobs per year are needed to stabilize the employment-to-population ratio at about 51%, and around 100,000 per year would be needed to raise it to 60%. The Medium-Term National Development Plan 2024-2030 and the Youth Employment Scheme target 500,000 youth jobs by 2030, including at least 30% for women. The policy target combines approximately 350,000 direct private-sector jobs and 150,000 public-sector-coordinated jobs. Agriculture, fisheries, tourism, mining, transport, digital and information technology, small and medium-sized enterprises, trade and public works are priority areas. These are planning targets, not evidence that the stated number of jobs has already been created. The working-age population participation rate fell from 66% in 2001 to 53% in 2022, and the employment rate is about 51%. The 2020 national unemployment rate of 4% is dated and cannot by itself measure underemployment, unstable hours or low earnings. The latest household-survey evidence in the available research is the 2018 Integrated Household Survey, while the 2022 business census mainly covered private non-financial establishments and largely excluded public institutions. Statistics Sierra Leone, MELSS, MTHE, NCTVA, NASSIT and the Ministry of Youth Affairs each provide different parts of the labor-market picture, so figures should be read with their source, date and coverage in mind.