Iraq’s Unemployment Crisis: Seeking Solutions
Iraq faces a severe unemployment crisis, with approximately 350,000 graduates entering the labor market annually amid limited job opportunities, Shafaq news reported. The economy’s heavy reliance on oil, which accounts for over 90% of state revenue, exacerbates this issue. Economic researcher Ahmed Eid emphasizes that this dependence makes Iraq vulnerable to global price fluctuations and hinders job creation in sectors like manufacturing and technology.
The overall unemployment rate stands at 16.5%, with youth unemployment soaring to 36%. Nearly 15 million Iraqis are unemployed, as the public sector, which employs 67% of the workforce, cannot absorb the influx of graduates. MP Jawad Al-Yasari notes that this overreliance stifles private industry development.
Moreover, a significant mismatch exists between educational output and labor market needs. From 2015 to 2023, over 1.1 million graduates emerged, but fewer than 200,000 secured public-sector jobs. Economist Karim Al-Hilu stresses the necessity of aligning education with market demands.
To address these challenges, experts advocate for structural reforms to revitalize the private sector. The 2023 Retirement and Social Security Law aims to incentivize private employment. Policymakers are also considering measures to reduce public-sector dependency, such as implementing a ‘one job per person’ rule.
Al-Hilu suggests that Iraq could benefit from European models, where a greater proportion of jobs are in the private sector, supported by vocational training and social protections that make private employment more attractive.
