When Puntland government was established in 1998 there were no Ministry of Labour, Youth and Sports as its present form. The labour office was a separate independent directorate under the presidency office while Youth and Sports was a department under the old Ministry of Social Affairs. In 2003 the Ministry has been formed and established as a ministry with the name of Ministry of Labor, Youth and Sports instead of directorate.
Ministry of Labour, Youth and Sports is the mother of all the government ministries and institutions. It is mandated to develop the human resource of Puntland, who are the backbone for the success of every organisation, as well as Puntland youth and sports in order to create a healthy future and career prospects for the youth to contribute positively to the future development and stability of the country. Its functions include implementation of state policies in the fields of Labour and employment, professional qualifications, industrial relation and dispute settlement, income and living standards, health and safety at work, social security, social assistance, international labour standards and cooperation; as well as promotion and development of youth issues and sports activities.