According to the World Bank, 96.3% of workers in Benin were employed in the informal sector in 2022. This data was released in the World Bank's Economic Outlook report published on November 9, 2026. The report highlights the significant role of self-employment and the limited formal employment opportunities in the country. Despite sustained economic growth, the informal sector remains the primary source of employment for most Beninese workers.
The World Bank's report notes that Benin's economic growth has not translated into a corresponding increase in formal employment. In 2025, Benin's GDP grew by 8.1%, following an average growth rate of 7.1% between 2021 and 2025. The International Monetary Fund (IMF) reported a growth rate of 8.2% in the first half of 2026. However, this growth has not led to a significant increase in formal employment opportunities.
Self-employment is a dominant feature of Benin's labor market. The World Bank estimates that eight out of ten jobs created in Benin are in the form of self-employment. This indicates that many individuals in Benin rely on their own initiatives to generate income, often in small-scale commerce, agriculture, or transportation. However, these self-employment initiatives often do not lead to stable employment or the creation of new jobs.
The proportion of self-employed individuals with at least one employee has increased marginally over the years. In 2016, this proportion was 0.8%, and by 2024, it had risen to 1.3%. The World Bank also notes that the formal employment sector is underdeveloped in Benin. In 2024, only 19.8% of the total workforce was employed in formal jobs, compared to an average of 39.1% in comparable countries.
The youth in Benin face significant challenges in accessing formal employment. In 2024, only 9% of young people were employed in formal jobs. However, there are signs of growth in certain sectors, such as the Glo-Djigbé Industrial Zone (GDIZ), which reported 22,798 jobs in 2025, representing a 28.8% increase from the previous year.
The World Bank identifies the manufacturing, agro-industry, and high-productivity services sectors as potential drivers of employment growth in Benin. However, the report also highlights the challenges related to access to electricity, which is a significant constraint for businesses in Benin. According to the World Bank, 86.1% of Beninese companies face electricity outages, and nearly half consider access to energy a major obstacle to their operations.
The World Bank estimates that implementing the Mission 300 pact could generate around 159,000 additional jobs of better quality in Benin. The report emphasizes the need for policies that promote formal employment and address the challenges related to access to electricity and other infrastructure constraints. By addressing these challenges, Benin can create more jobs and improve the quality of employment for its citizens.
Key points
- 96.3% of workers in Benin were employed in the informal sector in 2022
- Self-employment accounts for eight out of ten jobs created in Benin
- Implementing the Mission 300 pact could generate around 159,000 additional jobs in Benin
