The Impact of the Informal Economy on Youth Unemployment in Zliten: An Analytical Field Study

Abstract

This research aims to analyze the impact of the informal economy on youth unemployment in the city of Zliten, considering that this sector has become an important part of economic activity in Libya, especially given the limited job opportunities in the formal sector. The importance of the study comes from the link between the informal economy and unemployment, and the potential effects this may have on labor market stability and employment opportunities. The study relied on a descriptive-analytical approach, using a field survey distributed to a sample of young people in Zliten to measure the relationship between the expansion of the informal economy and youth unemployment levels. Appropriate statistical methods were also used to analyze the data and test the hypotheses. The study found a positive relationship between the expansion of the informal economy and the rise in youth unemployment rates, as this sector absorbs part of the workforce without providing stable or formal job opportunities. The study also recommended the need to strengthen official employment policies and support small projects to reduce unemployment.