In early 2026, crisis outcomes in Eastern Sudan and Khartoum were expected to persist due to reduced access to income-earning opportunities for both IDPs and the host community, resulting from conflict and displacement, widespread destruction of infrastructure, below-average stocks, and high food prices.652
Sudan's labour market has contracted sharply since April 2023, with unemployment rates skyrocketing,653 the economy collapsing, resources diverted to the conflict and an expanded informal sector replacing formal employment and resulting in the war economy taking over a previously struggling economy.654
The Sudan Welfare Monitoring Survey, conducted in 2025 among 4 241 households in Blue Nile, White Nile, Kassala, and Red Sea states indicated that employment levels among Sudanese increased between 2024 and 2025, particularly among men and those with a secondary or high school education. Persistent gender disparities continued to limit workforce participation among both Sudanese and refugee women.655
Refugees in Sudan, mostly originating from South Sudan, Eritrea and Ethiopia, largely worked in the informal sector outside camps – primarily in agriculture and small-scale trade. 656 Employment among refugees saw a slight decline between 2024 and 2025 due to barriers to employment outside refugee camps. Refugees with higher education were an exception, as they have experienced an increase in employment.657 The legal framework defined by the 2014 Asylum Regulation Act did not provide clarity on the procedures to obtain work permits. This, coupled with movement restrictions and security concerns, limited job opportunities. Additionally, regional disparities in law enforcement and administrative capacity constrained refugees’ access to formal work.658
Agricultural labour opportunities — normally a key income source during the harvest —remained scarce due to insecurity, leaving millions of households without viable livelihoods and increasingly dependent on extreme coping strategies, including begging for food.659
Public wage erosion and payment disruptions persisted in the country: the Ministry of Finance approved retroactive salary increases in the 2026 budget to begin in March 2026, but these had not been implemented by April 2026, deepening social pressure and reducing confidence in state payments.660
The World Bank indicated a rise in unemployment in the country from 2022 to 2024, resulting from ‘widespread business closures, economic uncertainty, and a sharp decline in stable job opportunities due to the severe impact of the conflict on the labour market’. Unemployment rates went from 32 % in 2022 to 46 % in 2023 and 47 % in 2024661 with 4.6 million jobs lost since the beginning of the conflict.662 The 2026 World Economic Outlook by the International Monetary Fund (IMF) indicated an unemployment rate of 60.1% for 2025.663 More than half of the refugees interviewed by the Sudan Welfare Monitoring Survey conducted in 2025 reported that they had not worked between May and July 2025, a slight increase compared to 12 months earlier. The share of refugees relying on food aid increased from 42 % to 45 %.664
According to economist Dr Abdel Halim Timan, as reported by Dabanga, the war has increased youth unemployment, due to the widespread disruption to education, particularly in western Sudan. This has deepened inequality and driven some young people towards recruitment by armed groups, increasing the risk of prolonged conflict.665
Increased prevalence of child labour is a concerning trend, particularly among households struggling with food security, in refugee communities, and among Sudanese families with lower education levels.666 Sudanese boys frequently engage in informal work, such as agriculture, herding, restaurant jobs, and street vending.667
Khartoum has been Sudan’s primary industrial, commercial, and manufacturing hub, hosting two thirds of the country’s manufacturing establishments. However, most of the large businesses in Khartoum including factories (wheat mills, food, beverages, pharmaceuticals, car assembly, etcetera), warehouses, car dealers, all the main and small popular markets, shopping malls, electronic shops, and the gold market were looted or destroyed, with some burned to the ground, or forced to shut down.668 Before the start of the current conflict, the national unemployment rate in the country stood at 8.4 %, with Khartoum and Central Darfur experiencing respectively 1.5 and 10 times higher unemployment rates than the national average.669 Since the beginning of the conflict, more than 60 % of the capital’s residents have reportedly lost their jobs and life savings. A former civil servant who returned to Khartoum in January 2026, reported having been forced into marginal labour during his displacement and finding no work available in a city where business has ceased.670 In Khartoum state, ERRs members have worked unpaid for over two years, many facing burnout, livelihood pressures, and mental health strain.671 For additional information on ERRs see sections 2.1.2. Resistance committees, 2.4.2. Situation of aid workers and 3.1.4. Housing and general living conditions.
- 652
FEWS NET, Famine thresholds no longer met, but credible risk of Famine persists in parts of Sudan, February 2026, url
- 653
Bertelsmann Stiftung, BTI 2026 Country Report — Sudan, 2026 url, p. 23
- 654
SudanNile, السودان من ما قبل الثورة إلى فخ الصراع (2017–2026): قراءة اقتصادية في دورة الانهيار والتحول , [Sudan from Pre-Revolution to the Trap of Conflict (2017–2026): An Economic Reading of the Cycle of Collapse and Transformation], 16 April 2026, url
- 655
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026 url, pp. 15, 16
- 656
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026, url, p. 17
- 657
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026 url, pp. 15, 16
- 658
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026, url, p. 17
- 659
IPC, SUDAN: Famine threshold for acute malnutrition surpassed in two more North Darfur localities, crisis worsening in Greater Kordofan, 5 February 2026, url
- 660
SudaNile, أساتذة الجامعات السودانية يُنفذون إضراباً عن العمل لتدني الرواتب, [Sudanese university professors are on strike over low salaries], 31 March 2026, url
- 661
World Bank (The), Sudan Economic Update, May 2025: The Economic and Social Consequences of the Conflict - Charting a Path to Recovery, 9 June 2025 url, p. 10
- 662
The Journal of Development Studies, What Are the Economic and Poverty Implications for Sudan If the Conflict Continues Through 2025?, Vol. 62, No. 1, pp. 106–127, 26 June 2025, url; Conversation (The), Sudan’s war is an economic disaster: here’s how bad it could get, 16 July 2025, url
- 663
IMF, 2026. World Economic Outlook: Global Economy in the Shadow of War. Washington, DC. April 2026, url, p.42
- 664
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026, url, p. 16
- 665
Dabanga, Economist: ‘Sudan’s middle class, swept away by war, must be revived’, 25 February 2026, url
- 666
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026 url, p. 17
- 667
World Bank (The), Sudan's Crisis: Navigating Disparities, Resilience, and Recovery for Refugees, IDPs, and Host Communities, 25 January 2026, url, pp. 19, 20
- 668
UNICEF, The Impact of Sudan's Armed Conflict on the Fiscal Situation and Service Delivery. UNICEF Sudan – Social Policy, November 2023 url, p. 4
- 669
IFPRI and UNDP, The Socioeconomic Impact of Armed Conflict on Sudanese Urban Households: Evidence from a National Urban Household Survey, November 2024, url, p. 1
- 670
Sudan Tribune, Sudan’s displaced return to a ‘capital of ruins’ as savings dry up, 12 March 2026, url
- 671
ACAPS, Challenges and opportunities for Khartoum state emergency response rooms, 16 October 2025, url, p. 2