How does formal employment differ from informal work in Somalia?

Formal employment falls within the framework of the Somali Labour Code Law No. 36 of 2024 and can involve regulated contracts, pay, working time, leave, safety and termination. Informal work remains widespread and often relies on self-employment, local networks or unregistered activities.

What should a person compare when choosing employment, self-employment or business activity in Somalia?

Compare the work arrangement, income terms, legal protections, registration duties, required licences and the location of the activity. Employment may involve an employer and an employment relationship, while self-employment or business activity may require business registration, a licence and additional tax, customs or sector approvals.

How can people prepare for a profession in Somalia?

Possible pathways include university or college study, technical and vocational education and training, short courses, apprenticeships, workplace learning and informal skill transfer. Some professions require registration or licensing, while others rely mainly on an employer, provider or demonstrated practical skill.

Work in Somalia

Q: Where can unemployed people in Somalia seek job-matching support?

The National Employment Service Center offers job matching and employability support. Somalia has no evidenced nationwide unemployment insurance or unemployment benefit, so access to other support depends on the available local or institutional arrangement.

Work in Somalia includes employment, running a business, self-employment, unemployment, professions and the wider labor market. Formal employment is governed by the Somali Labour Code Law No. 36 of 2024, which entered into force on 4 February 2025, while informal work remains widespread. Available work ranges from pastoralism, agriculture and fishing to trade, services, construction, education, health, technology and aviation.

Tip

Choose the work arrangement that matches your actual activity, location and occupation, then verify its pay, protections, registration and approval requirements. Do not assume that an informal opportunity, a registered business or a professional skill automatically provides the same rights, stability or access to work. Use the National Employment Service Center when you need job matching or employability support.

byFadumo&Ahmed

Employment

Employment in Somalia combines a formal national framework with a labour market in which informal work remains widespread. The Somali Labour Code Law No. 36 of 2024 entered into force on 4 February 2025 and regulates employment relationships, including contracts, pay, working time, leave, safety, discrimination and termination. Access to formal job services varies by location, while informal recruitment, self-employment and local networks remain significant.

Employer

An employer in Somalia, called loo shaqeeye in Somali, hires and manages shaqaale, or employees, pays agreed wages and provides a safe workplace. Employer responsibilities are shared between federal and Federal Member State bodies, while practice remains fragmented because about 91.7% of employment was informal in 2022. Around 97% of formal firms have 1–9 employees and about 91% are sole proprietorships.

Unemployment

Unemployment in Somalia is measured as having no work in the previous week while being ready to work; the 2019 labour-force survey used a relaxed definition that did not require job-search activity. Somalia has no evidenced nationwide unemployment insurance or unemployment benefit, while the National Employment Service Center (NESC) offers job matching and employability support. The latest cited national labour-force figures are from 2019 and exclude nomadic people and insecure or inaccessible areas, so they do not represent a current complete country estimate.

Labor market

Somalia's labor market is large but fragmented, with low participation, widespread informal work and limited reliable data. In 2022, 25.9% of people aged 15 and older participated in the labor market, while the unemployment rate was 16.3% and youth unemployment was 30.1%. Trade, services, small businesses and self-employment provide much of the available work, while formal jobs remain limited.

Professions

Professions in Somalia range from pastoralism, agriculture and fishing to construction, transport, education, health, administration, commerce, technology and aviation. People enter them through university or college study, technical and vocational education and training (TVET), short courses, apprenticeships, workplace learning or informal skill transfer. Formal registration or licensing applies in some sectors, while many occupations depend mainly on an employer, provider or demonstrated practical skill.

Business

Business in Somalia ranges from informal self-employment and household enterprises to registered companies. Formal registration usually involves the Ministry of Commerce and Industry, name reservation, incorporation documents, a business licence and, where relevant, tax, customs and sector approvals. Federal, state and municipal requirements are not fully harmonized, so the practical process depends on the location and activity.

The Somali labor system combines formal jobs, informal work, self-employment and business activity. The Somali Labour Code Law No. 36 of 2024 regulates employment relationships, including contracts, pay, working time, leave, workplace safety, discrimination and termination. Practical access to formal jobs and job services varies by location, and local networks remain significant in recruitment. Employers hire and manage employees, pay agreed wages and provide a safe workplace. Their responsibilities are shared between federal and Federal Member State bodies. Small enterprises dominate formal business activity: around 97% of formal firms have one to nine employees, and about 91% are sole proprietorships. Business registration commonly involves the Ministry of Commerce and Industry, name reservation, incorporation documents and a business licence, with tax, customs or sector approvals required where relevant. Federal, state and municipal procedures are not fully harmonized. The labor market remains fragmented. In 2022, 25.9% of people aged 15 and older participated in the labor market, the unemployment rate was 16.3%, and youth unemployment was 30.1%. About 91.7% of employment was informal in 2022. The 2019 labor-force survey measured unemployment as having no work in the previous week while being ready to work, using a relaxed definition that did not require active job search. Its figures exclude nomadic people and insecure or inaccessible areas, so they do not provide a complete current country estimate. Somalia has no evidenced nationwide unemployment insurance or unemployment benefit, while the National Employment Service Center offers job matching and employability support. People enter professions through university or college study, technical and vocational education and training, short courses, apprenticeships, workplace learning or informal skill transfer. Some sectors require formal registration or licensing, while other occupations depend mainly on an employer, provider or demonstrated practical skill. The suitable path therefore depends on the intended occupation, location, employment arrangement and whether the activity will remain informal or operate as a registered business.