Ethiopia: Labor freedom

The latest value from 2026 is 38 points, a decline from 39 points in 2025. In comparison, the world average is 55 points, based on data from 182 countries. Historically, the average for Ethiopia from 2005 to 2026 is 53 points. The minimum value, 38 points, was reached in 2026 while the maximum of 62 points was recorded in 2005. See the global rankings for that indicator or use the country comparator to compare trends over time.

The Labor Freedom index for Ethiopia from the Heritage Foundation reflects the various aspects of the legal and regulatory framework of the labor market in Ethiopia, including the minimum wage; laws inhibiting layoffs; severance requirements; and the regulatory burdens on hiring.

Definition: The Labor freedom index is composed of six quantitative factors: ratio of minimum wage to the average value added per worker, hindrance to hiring additional workers, rigidity of hours, difficulty of firing redundant employees, legally mandated notice period, and mandatory severance pay. The index is based on data collected in connection with the World Bank’s Doing Business study.