Informal sectors play a significant role in urban economies across Africa, offering employment opportunities to millions of people, especially in informal settlements like those found in Libya. The analysis employs a qualitative approach to understand the perceptions, challenges, and support needs of workers in the Libyan informal sector. A key finding is that informal sector employees often face high levels of stress due to unpredictable working conditions and financial instability, which significantly affects their mental health and job satisfaction. The findings underscore the urgent need for more comprehensive psychological support programmes tailored specifically for workers in the informal economy. Policy recommendations include establishing community-based counseling services, enhancing access to microfinance, and promoting awareness campaigns about stress management and resilience building.