Labour Market Assessment Report, Syria

Executive summary

Syria’s ongoing political transition and its reopening to trade and diplomacy are reshaping the country’s economic and labour landscape, creating opportunities for recovery while also exposing systemic vulnerabilities. This Labour Market Assessment conducted by the Danish Refugee Council across the governorates of Aleppo, Homs, Dara’a, Damascus and Rural Damascus between August and November 2025, examines three key sectors-agriculture, construction, and textile-to inform market-driven economic recovery programming in the post-conflict context.

The agriculture sector, traditionally the country’s largest employer and representing 26% of Gross Domestic Product (ICARDA), is recovering unevenly amid water scarcity, damaged irrigation systems, and rising input costs. Yet, renewed access to land and markets is revitalizing production, particularly of cereals, fodder, and drought-resilient crops. Informality and limited finance constrain smallholder investment, but the sector offers high potential for rapid job creation if supported by infrastructure rehabilitation, expanded access to inputs, technology and introduction of new agricultural techniques, and market linkages which positions Syria yet again as the breadbasket of the Middle East.

The construction sector is expanding due to large-scale reconstruction needs. Medium-sized firms are leading reconstruction projects through formal contracts, subcontracting informal small and micro-enterprises. Instability, persistent inflation, energy shortages, and liquidity crises undermine growth, but demand for skilled labour and potential for reconstruction and rehabilitation projects remain strong.

The textile sector in Syria, once a regional industrial hub, is on a long road to recovery but faces competition from smuggled imports and difficulties in accessing raw materials. Recovery hinges on the availability of modern equipment, improved energy reliability, and restoration of trade networks.

Across sectors, labour markets are dominated by informality, fragmentation (between business to customer and business to business), and gender norms that limit female participation. Targeted investments in skill development and reskilling, and the recovery of micro, small, and medium enterprises (MSMEs) are essential to foster sustainable and inclusive growth. Moreover, support that is coordinated across the Government of Syria, NGOs, other civil society actors, and the private sector, is essential to addressing systems-level gaps and constraints in the agricultural, textile, and construction market systems.