By Rocheford T. Gardiner – June 25, 2025
Cape Palmas, Liberia–On paper, Liberia’s unemployment rate appears impressively low. According to the International Labour Organization and related sources, the country’s jobless rate stands at just 2.9%. Compared to global benchmarks, where a 4–5% rate in the U.S. is considered “full employment,” and many African nations contend with double-digit unemployment, this figure might seem like a sign of economic health.
But behind the numbers lies a more troubling reality.
The Real Picture: Why Liberia’s Low Unemployment Rate is Misleading
- High Informal Employment: Most Liberians work in the informal sector—street vending, subsistence farming, and casual day labor. Though they are classified as “employed,” many earn meager incomes and lack any form of job security.
- Underemployment: A significant number of Liberians are underemployed—working fewer hours than desired or in roles that underutilize their skills. They technically have jobs, but their earnings often fail to cover basic needs.
- Lack of Social Protection: Employment in Liberia frequently comes without access to healthcare, pensions, or workplace safety standards.
In short, the 2.9% unemployment rate belies deep-rooted issues: widespread poverty, underemployment, and a labor force dominated by informal, unstable jobs.
The Rise of Outsourcing: A Growing Concern
Exacerbating these challenges is a growing trend among companies and concessionaires operating in Liberia: outsourcing. Increasingly, these entities are shifting responsibilities to third-party contractors—effectively reducing costs and liabilities, but leaving Liberian workers more vulnerable than ever.
Major players like Lonestar Cell MTN and Orange GSM Liberia exemplify this model. Critical departments such as Network Operations Centers (NOC), base station maintenance, and power management are now often outsourced. The typical process looks like this:
- Former full-time employees are paid off.
- Departments are outsourced to third-party contractors through a bidding process.
- The winning contractor rehires some of the same workers—but now at drastically reduced wages, sometimes earning less than 80% of their previous salaries.
This setup allows parent companies to interface solely with subcontractors, evading responsibility for job security, health insurance, and retirement benefits. For Liberian workers, this means no pensions, no social security, and no fallback if the contract ends.
The problem goes deeper. Firms like Sethi Brothers are reportedly hiring workers—often fellow nationals—for positions as basic as cashier roles, paying them significantly more than what locals might receive. In the southeast, companies like Golden Veroleum Liberia, Maryland Oil Palm Plantation (MOPP)/SIFCA, and the broader conglomerate GOLDENSIFCA continue to employ outsourcing strategies. While these practices are currently legal under Liberian law, their ethical and economic impact is questionable.
Government Response: A Call for Reform
Given the fragile state of the economy and the scarcity of stable job opportunities, President Joseph Boakai’s pledge to “rescue” Liberia requires urgent and tangible action—starting with a comprehensive review of labor laws and concession agreements.
A resident of Maryland County, recently denied contract renewal by a concession company, shared his frustration: “The Legislature must give every citizen in all fifteen counties a voice in this labor law review process—and it must happen fast.”
This issue with the Maryland resident is not isolated. Even direct contractors—those technically hired by the company itself receive no severance or support if the operation shuts down. A case in point is the WESTNAF Logging Company, which operated in Maryland and River Gee counties respectively. Allegedly owned by a Ghanaian national, the company employed many Ghanaian truck drivers. Subsequently, it vanished without trace—leaving no benefits, no compensation, and no accountability for its Liberian staff that performed the menial tasks.
Not even the public sector is immune. Several government agencies reportedly outsource entire departments—security being a frequent example. This raises serious questions: Can meaningful reform take place when some of those meant to regulate outsourcing have vested interests in the very companies exploiting the system?
Conclusion
Outsourcing in Liberia may boost corporate profits, but it comes at a steep cost to workers’ welfare and the country’s long-term development. If the Boakai administration is truly committed to protecting its citizens, bold steps must be taken—not just to revise existing laws, but to ensure enforcement and transparency in how Liberians are treated in their own labor market.
