cable- At the heart of a crowded market in the center of the capital, Kabul, Safi Allah Akhund Zadeh stands in a crowded corner staring at the faces of passers -by in search of a daily job opportunity in the field of construction.
Like other thousands of workers, most often go back to his small hut, empty -handed, carrying over his shoulders, the concern of his 5 -person family.
“There is no liquidity among the owners of projects, and the prices are constantly high, so how do I live?”, Akhund Zadeh wonders bitterly, in an honest expression of the size of the predicament experienced by the labor market in Afghanistan today.
Since the political transformations in the country in August 2021, the Afghan economy has faced tremendous difficulties, in light of a near -complete monetary system that has become trapped in international sanctions, with a significant decline in external aid and high unemployment and poverty rates.
Despite government attempts to control the rhythm of the economy and activate support tools for the private sector, the indicators are still worrying, and markets show increased fragility in light of the decline in liquidity and weak investment, which negatively reflects the ability of citizens to find generous job opportunities.
Critical economy under the pressure of sanctions
The Afghan economy depends on agriculture, which accounts for 58% of the uses of land, in addition to the informal trade that constitutes the mainstay of local markets, but this model faces a double crisis:
- Foreign aid decreased from $ 3.8 billion in 2022 to only 1.9 billion in 2023.
- Funding only 51.8% of the United Nations Humanitarian Plan for 2024, which is $ 3.06 billion, according to the World Bank.
It also caused the freezing of $ 7 billion in foreign banks due to the sanctions imposed on a severe liquidity, which forced many small companies to reduce their activity or complete closure.
With the decline in the effectiveness of the banking system, citizens are dependent on the informal “transfer” networks to transfer money, which, although it provides flexibility in the transfer, lacks safety and reduces the market’s ability to attract investments.
The Afghan Chamber of Commerce states that about 60% of small companies have exposed a number of their employees due to the sharp decrease in purchasing power and the deterioration of the operational environment.
“Importing timber is very expensive, and liquidity is scarce, sometimes I have to dispense with workers to be able to pay the rent of the workshop,” said Abdul Majeed Sharifi – the owner of a carpentry workshop in Kabul – to Al -Jazeera Net.
Although the Central Bank to maintain the stability of the currency exchange rate – which ranged between 72 and 73 Afghans against the dollar currently – this monetary stability was not translated into tangible improvement in the labor market, as about 50% of the population is still below the poverty line, and 14.8 million people suffer from food insecurity, according to international data.
Government initiatives to enhance the private sector
In light of this compressive reality, the Afghan government seeks to motivate the private sector as an essential engine for growth, and efforts include providing financial incentives and tax facilities to support small and medium enterprises with the aim of creating a more flexible and competitive business environment.
“We focus on supporting local projects to reduce the unemployment rate and enhance internal economic activity,” Abdel Latif, theoretical deputy minister of Afghan economy told Al -Jazeera Net.
To counter the decline in international aid, the government also works to enhance local revenues by reforming the tax collection system and improving transparency in public institutions.
But these efforts collide with political and economic obstacles, foremost of which is the continuing sanctions that limit the government’s ability to reach global markets and complicate the banking sector operations.
Hungarian unemployment
According to the data of the International Labor Organization, the unemployment rate in Afghanistan reached 13.99% in 2023, with expectations of its rise in light of the return of more than 515,000 immigrants from Pakistan and the decline in human financing.
The agricultural sector, despite its employment, is the largest number of populations from the least productive sectors, while small industries suffer from a chronic deficiency in financing.
Coal exports to Pakistan also decreased by 15% during 2023, which increased pressure on the balance of payments.
Women face escalating challenges in the labor market, since 2021 their participation decreased by 25%, as a result of the closure of many small home projects.
“I closed my workshop because of the high costs of the fabrics and the demand has declined, it was an area of hope for me and my colleagues, and today we returned to the homes we are waiting for an opportunity that we do not know when you come,” said Zulekha Azizi from the state of Herat (west of the country).
As for Halima Rafiki from Jalal Abad (east of the country), she explains, “We do not want alms, just small loans in which we restart our projects, we have skills, but the market is dead.”
“Women need microfinance and vocational training, otherwise we will lose the progress we have made in empowering women economically during the past decades,” said local activist Nadia Ahmadi.
Fragile market and weak employment mechanisms
Many Afghan workers rely on random markets for daily work such as “but his foot” in Kabul, where they are waiting for contractors who may request building workers or drivers with wages ranging between 200 and 500 Afghan daily (equivalent to 3 to 7 dollars), yet these opportunities remain few and not guaranteed.
“Sometimes we work throughout the day, then we do not receive anything, no contracts, no guarantees, only hollow promises,” the construction worker, Mohamed Naseem, told Al -Jazeera Net.
“The work is unstable, and the income does not cover until the rent of the room where we live 5 together,” added his colleague Hassan Safi.
Even in rural areas, seasonal job opportunities are linked to narrow social networks, and wages are often paid in kind or low amounts.
This situation causes economists to warn of market dependence on informal employment, as it is fragile and does not build a sustainable economy.
“Unofficial employment provides flexibility, but it does not establish a long -term growth,” economist Ahmed Boubel told Al -Jazeera Net.
Efforts to attract investment and expand external employment
One of the most prominent government moves recently is the Ministry of Labor’s announcement of a preliminary memorandum of understanding with the State of Qatar to employ Afghan workers.
The ministry spokesman, Sami Allah Ibrahimi, confirmed that the agreement will provide a legal framework that preserves the rights of workers and provides a flow of foreign currency.
Besides, the Ministry issued more than 114,000 local business licenses last year, and similar consultations are held with countries such as the UAE and Turkey.
Dr. Mohamed Zubair Aren, Professor of Economics at the University of Cardan in Cable, believes that exporting employment may contribute to raising the gross domestic product by 5 and 7% annually, provided that the matter is done within an internationally supported institutional system as is the case in the Philippines and Nepal.
But Aarine warns of financial obstacles, and says, “The penalties for the banking system may hinder the transfer of wages. International agreements are required to guarantee transfers and protect the rights of workers.”
He added, “We need a national body that supervises external employment and guarantees rehabilitation and transparency and prevents exploitation as many Asian countries have done.”
Limited collapsed sectors and prospects
Official data shows a wide deterioration in the economic sectors:
- Services sector decreased by 30% in 2021.
- Agriculture decreased 6.6% in 2022.
- Industries lost 5.7% of their size.
- The construction sector deteriorated by 35.4%.
As for the banking sector, it was very disrupted after the freezing of assets, which lost it the ability to finance economic activities.
The World Bank indicates in its report issued in December 2024 that this stalemate is a candidate to continue until the end of 2025.
A hard road towards stability
The Afghan labor market stands in front of a decisive crossroads in light of international isolation, the decline in external support and incomplete government attempts, and the challenges remain enormous, while hope for change is linked to the reduction of sanctions and the activation of structural reforms.
The economist Ahmed Boublel summarizes the scene by saying, “Investing 50 million dollars may generate 150,000 job opportunities by 2027, but we need a legal environment, international confidence, and capable institutions, an economic future cannot be built on fragility and external benefits.”
While waiting, the struggle of workers, women and small investors continues in a country looking for stability, amid a critical economy struggle to survive.
