Introduction:
Iraq and KR-I face significant challenges in addressing unemployment and fostering economic growth, particularly in the aftermath of the 2014 crisis, which led to the loss of around 800,000 jobs in Iraq. One major issue is the education system's shortcomings, leaving many recent graduates unprepared for the job market due to skill gaps, especially in important soft skills like critical thinking and time management. Additionally, governmental problems, such as economic crises and ineffective strategies, hinder efforts to create jobs and support the private sector. The private sector, primarily focused on profit, often neglects job creation and employee well-being, especially during economic downturns. To tackle these challenges, collaboration between educators, industry leaders, governments, and international organizations is crucial to improve education, implement effective job creation strategies, and promote sustainable employment practices in Iraq and the Kurdistan Region.
Education System Inadequacy:
Fresh graduates have been struggling to find jobs for years in Iraq, particularly in KRI and specifically in Sulaymaniyah. The struggles stem from various aspects, including unemployment in the public and governmental sectors, lack of suitable or appropriate job opportunities within the private sectors, and employer expectations for recent graduate employment. However, skill gaps among fresh graduates lead to requirement challenges. The leading factor in this issue is inadequate education curricula and processes in universities and institutes. Consequently, a mismatch between employer needs and candidate qualifications occurs. Soft skills such as teamwork, critical thinking, and time management are the areas that were found to be a systemic issue in the education system’s ability to develop these skills among students. Even though different positions require differing skills, some similar essential skills are generally needed by all sectors and positions. A survey by IREX shows that 37.29% of job recruiters and HR managers face challenges with the skills and qualifications in the recruitment process for entry-level positions. In addition, 45% said it would take 2-3 months to train the new employees for their specific positions.
According to a study by ESCWA, strict employment regulations, the absence of diversification, and the shortage of skilled workers are the main challenges that were found to limit the increase of employment in Iraq. Recognizing that the real challenge starts with the education system and its inefficiency in preparing students for future careers and the labor market, there should be efforts towards facing and solving this issue so that fresh graduates would find jobs easily and employers hire employees who will satisfy and meet their requirements. Generally, it is recommended and required that educators are urged to collaborate with sector-leading companies to develop programs tailored to industry needs to address these education inadequacies and better prepare students for the labor market. Similarly, industry leaders must engage with university Career Development Centers, strengthen internship programs, and leverage social media for recruitment efforts. By fostering a closer tie between academia and the labor market or industries, the gap between education and the labor market would be better filled, and graduates would become adequately equipped to meet the demands of the labor market.
Governmental Issues:
The governmental issues in Iraq encompass various factors, the most prominent being economic crises and a lack of effective strategy. Strategies and funding are closely intertwined, as sufficient funding is essential for implementing effective strategies. However, Iraq faces a shortage of well-designed strategy due to the country's predominant focus on security and military sectors. Since 2014, many funds have been allocated to the military and security sectors, leaving other ministries with inadequate resources to carry out their functions efficiently. Consequently, the work of many ministries, such as the Ministry of Labor and Social Affairs (MOLSA), has been impeded by budgetary constraints. For instance, due to limited budgets, MOLSA has been compelled to reduce its efforts to develop the private sector and create job opportunities.
According to the data, 27.5% “of the small firms consider labor market regulations as a significant hurdle in Iraq. Collaborating with international organizations like the International Labour Organization (ILO) could potentially aid MOLSA in implementing frameworks and policies based on national employment strategies. However, these efforts remain insufficient to address the country's unemployment crisis, as from 20 million of the population, 2.5 million are unemployed, particularly in the Kurdistan Region (KRG), where unemployment rates are steadily rising, as reported by the ILO.
Private Sector Inefficiency:
The private sectors in Iraq and the Kurdistan Region (KRG) are predominantly profit-oriented entities, prioritizing financial gains over job creation and employee welfare. Despite the vast potential for business and trade, the focus remains on maximizing profits, often at the expense of employee well-being. Economic crises further exacerbate the situation, creating a scarcity of job opportunities and forcing individuals to accept whatever work is available, regardless of the associated challenges. In Addition, in one of the Sbey Research Center’s research, the participants in the focus group discussion have negative perceptions toward the private sector’s condition because they do not provide enough job opportunities. Moreover, the private sector's hesitancy to create new job opportunities exacerbates the issue, as companies prioritize cost-saving measures over employee welfare. This profit-centric approach capitalizes on the economic crises, exploiting the situation for financial gain rather than investing in sustainable employment practices. Recognizing the severity of the issue, the International Labour Organization (ILO) has collaborated with the private sector to address the lack of job opportunities. Specific programs aimed at increasing job creation rates and improving employment prospects have been initiated, highlighting the importance of collaborative efforts in addressing this gap and fostering sustainable economic development in Iraq and the KRG. Still, the government and the MOLSA should collaborate to increase the positive impacts and results on employment in both KRG and Iraq.
Conclusion:
In conclusion, Iraq's struggle with unemployment and economic growth demands a concerted effort to address systemic issues within the education system, government policies, and private sector practices. By prioritizing collaboration and reform, stakeholders can work towards bridging the gap between education and employment, implementing effective job creation strategies, and fostering a culture of sustainable development. With dedication and collective action, Iraq can unlock the potential of its workforce, drive economic prosperity, and create a brighter future for its citizens.
