STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)

Abdul Ahmad Pooya

doi:10.17261/Pressacademia.2025.2007

STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)

Abstract

Purpose – This study examines Afghanistan's structural transformation and labor market dynamics from 2017 to 2024, focusing on the disruptions caused by the 2021 political transition. It aims to identify how institutional fragility, return migration, and the collapse of the formal sectors have reshaped employment structure and productivity across the economy. Methodology – Using cross-sector data from the World Bank, the ILO, and national sources, the research applies a mixed analytical approach combining descriptive trend analysis and structural interpretation. The study traces employment movements across agriculture, industry, and services to uncover the phenomenon of reverse structural transformation, where labor shifts from high- to low-productivity sectors during crises. Findings – Results show that Afghanistan experienced a sharp 27% contraction in GDP after 2021, with about 2.6 million jobs lost, female employment declining by two-thirds, and informality expanding to 74% of total GDP. Labor reallocation was mainly driven by survival mechanisms rather than productivity gains, leading to increased unemployment, gender inequality, and reliance on subsistence agriculture. Conclusion – Afghanistan's labor market adjustments after 2021 reflect structural regression rather than progress. Sustainable recovery needs employment-focused diversification, financial revitalization, and gender-inclusive labor policies to turn short-term subsistence resilience into long-term productive growth.

Keywords

References

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Details

Primary Language

English

Subjects

Finance

Journal Section

Research Article

Authors

Abdul Ahmad Pooya
0009-0003-5526-6316
China

Publication Date

December 31, 2025

Submission Date

October 12, 2025

Acceptance Date

December 14, 2025

Published in Issue

Year 2025 Volume: 12 Number: 2

DOI

https://doi.org/10.17261/Pressacademia.2025.2007

IZ

https://izlik.org/JA73TR73SC

Cite

RIS / Bibtex

APA

Pooya, A. A. (2025). STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024). Journal of Economics Finance and Accounting, 12(2), 146-161. https://doi.org/10.17261/Pressacademia.2025.2007

AMA

1.Pooya AA. STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024). JEFA. 2025;12(2):146-161. doi:10.17261/Pressacademia.2025.2007

Chicago

Pooya, Abdul Ahmad. 2025. “STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)”. Journal of Economics Finance and Accounting 12 (2): 146-61. https://doi.org/10.17261/Pressacademia.2025.2007.

EndNote

Pooya AA (December 1, 2025) STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024). Journal of Economics Finance and Accounting 12 2 146–161.

IEEE

[1]A. A. Pooya, “STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)”, JEFA, vol. 12, no. 2, pp. 146–161, Dec. 2025, doi: 10.17261/Pressacademia.2025.2007.

ISNAD

Pooya, Abdul Ahmad. “STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)”. Journal of Economics Finance and Accounting 12/2 (December 1, 2025): 146-161. https://doi.org/10.17261/Pressacademia.2025.2007.

JAMA

1.Pooya AA. STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024). JEFA. 2025;12:146–161.

MLA

Pooya, Abdul Ahmad. “STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024)”. Journal of Economics Finance and Accounting, vol. 12, no. 2, Dec. 2025, pp. 146-61, doi:10.17261/Pressacademia.2025.2007.

Vancouver

1.Abdul Ahmad Pooya. STRUCTURAL TRANSFORMATION AND LABOR MARKET ADJUSTMENTS IN AFGHANISTAN: EMPIRICAL EVIDENCE FROM ECONOMIC DEVELOPMENT AND EMPLOYMENT TRENDS (2017–2024). JEFA. 2025 Dec. 1;12(2):146-61. doi:10.17261/Pressacademia.2025.2007