Economy

Afghanistan’s labor market remains weak, WFP says

A market in the eastern province of Nangarhar. January 2026.

Employment opportunities in Afghanistan continued to deteriorate in late May despite easing food prices and generally stable markets, according to a new World Food Program report that highlights the ongoing pressure on household incomes across the country.

The report found that casual laborers were able to secure work for an average of just 1.9 days per week during the fourth week of May, down 20 percent from the same period last year and 16 percent below the three-year average. The decline reflects continuing weakness in the labor market and growing competition for jobs, including among large numbers of returnees arriving from neighboring countries.

While food markets have stabilized in recent months, many Afghan households continue to struggle with reduced purchasing power and limited employment opportunities, the report says.

“Persistently limited employment opportunities, driven by increased demand from returnees, combined with rising food prices, continue to constrain the purchasing power of labour-dependent households,” the report said.

The WFP said market conditions remained broadly stable during the week. The afghani held steady at 63.8 to the U.S. dollar and remained stronger than both its level a year ago and the three-year average, helping to limit imported inflation.

Domestic harvests and continued imports through regional trade routes also helped maintain supplies across major markets.

However, many staple foods continue to cost significantly more than they did a year ago, the report says.

Compared with May 2025, wheat grain prices were 14 percent higher, wheat flour prices were up between 9 and 12 percent, sugar prices increased by 25 percent and cooking oil prices rose 4 percent. Rice recorded some of the sharpest increases, with high-quality rice costing 38 percent more than a year earlier and lower-quality rice up 28 percent.

The report said those increases were largely linked to trade disruptions between October 2025 and March 2026, when border closures with Pakistan forced traders to reroute imports through Iran and Central Asia, increasing transportation costs and disrupting supply chains.

Since then, improved trade flows and stronger market availability have contributed to gradual declines in food prices, the report says.

According to the report, vegetable prices continued their seasonal decline during the week as domestic production increased. Tomato prices fell by 18.5 percent, while potato prices declined 2.3 percent. Onion prices rose modestly but remained well below year-earlier levels.

The report also highlighted rising costs for farmers. Diesel prices remained 14 percent higher than a year ago, while fertilizer prices continued to exert pressure on agricultural production. Urea prices were 45 percent higher than last year and DAP fertilizer prices were up 16 percent.

Meanwhile, livestock prices rose ahead of Eid al-Adha. The price of a one-year-old female sheep increased by 6 percent during the week as seasonal demand strengthened, the report said.

Despite recent improvements in market stability, the report warned that transportation costs, uncertainty in regional trade and Afghanistan’s heavy dependence on imports continue to pose risks to prices and food security in the months ahead.