Wage crisis in Lebanon

In an official statement, the Lebanese Ministry of Finance announced its inability to provide the relevant salaries to its citizens: "It is important that the Ministry of Finance indicates that it will not be able to disburse salaries, allowances, wages and the stipulated increase... The last month of June before the holy Eid al-Adha, due to the lack of financial funds to date". 

Lebanese trade unions have expressed concern about the situation and warn of an impending crisis. The president of the general union, Bishara al-Asmar, tells Arab World News Agency that there is no reserve budget for the remainder of the year.  

Average salaries are also at an all-time low, since 2019 they have been falling, Arab News also notes that "in 2019, the minimum salary of a civil service employee was equivalent to 950,000 Lebanese pounds ($633), while it has now reached $140." 

Civil servants, military personnel and teachers have received salaries below the minimum, while ministers, judges, deputies and those in the communications and electricity sector have been able to receive an increase in salary and benefits.

The economic situation in Lebanon is at its worst in decades. The Lebanese pound has dropped significantly in value as a result of the severe shortage of foreign currency in the country. The prices of food, fuel and medicine have skyrocketed as a result. The number of businesses that have closed has increased, as has the unemployment rate.

Several factors have contributed to the economic crisis in Lebanon. One of the main ones is the country's high level of indebtedness. After the 1975-1990 civil war, successive governments accumulated debts with little chance of repayment. A severe lack of foreign currency in the nation has caused the Lebanese pound to depreciate significantly. 

The situation of the Lebanese pound is serious. The currency has lost more than 90% of its value since 2019. The devaluation of the pound is due to a combination of factors. One of the main reasons is the massive printing of currency being pumped into the system. This has led to a shortage of foreign currency, which has sent the value of the pound plummeting. The black market dollar exchange rate continues to fluctuate substantially due to the devaluation of the pound caused by the acute shortage of dollars inside Lebanon. 

The prices of electricity, transport, food, fuel and medicine have risen exponentially, while citizens' salaries are decreasing or not being remitted. There are also concerns about unemployment and business closures due to high prices. There are many challenges facing the Lebanese government, with some experts suggesting structural changes, such as the implementation of fiscal measures to promote economic growth, in order to overcome the general crisis.