Most workers are employed in the oil industry. It is the largest and most important part of the Libyan economy. Other people work in state-owned manufacturing. These companies produce machinery, appliances, cement and construction equipment, cigarettes, clothing, leather goods, textiles, shoes, fertilizers, and industrial chemicals. They also make processed foods such as olive oil, citrus fruits, tomato paste, tuna, and beverages.

Many farm workers moved to the cities during the 1960s and 1970s following the oil boom and industrial development. Agricultural workers now make up less than one-fifth of the work force. These workers grow citrus fruits, barley, wheat, millet, olives, almonds, dates, onions, potatoes, tomatoes, and tobacco. Many farmers raise sheep, goats, cattle, camels, and poultry, and produce dairy products and honey. Fishermen operating out of Tripoli bring in tuna, sardines, and mullet.

There is a shortage of unskilled laborers. Because of this, many unskilled foreign workers from neighboring countries live in the country. Libya also has hundreds of thousands of foreign technical workers, needed especially to advise on petroleum extraction and to design and construct irrigation systems.