2026-05-17T20:17:36+00:00

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Shafaq News- Baghdad

Iraq’s economic and financial conditions cannot support any new expansion in
public sector salaries or hiring—including converting contract workers to
permanent staff and reinstating dismissed security personnel, Kurdistan
Democratic Party (KDP) official said on Sunday.

Majid Shingali dismissed reports about permanent appointments and
reinstatements in the 2026 Federal Budget as “demagogic media rhetoric” aimed
at exploiting public sentiment rather than reflecting economic reality.

“The government is already unable to appoint graduates from
medical and health colleges from the 2023, 2024, and 2025 classes, in addition
to this year’s expected graduates,” he noted, adding that the government should
focus on creating employment opportunities in the private sector rather than
expanding public sector hiring.

كل ما يقال عن تضمين تحويل العقود الى الملاك الدائم اوتحويل عقود الرعاية الاجتماعية الى الوزارات أوإعادة المفسوخة عقودهم في الاجهزة الامنية في موازنة عام 2026 ومن اي جهة كانت هو ليس سوى اعلام ديماغوجي بعيد عن المنطق لان الواقع الاقتصادي والمالي لا يمكنه قبول اي زيادة في نفقات…

— د.ماجد شنكالي (@majidshingali) May 17, 2026

Earlier this week, Al-Zaidi said in an address to Iraqis that
his government would launch an economic reform program aimed at diversifying
sources of income, with a focus on supporting industry, agriculture,
investment, and the private sector, alongside creating job opportunities for
young people and reducing unemployment through development and production
projects.

Read more: A guide to Ali Al-Zaidi’s ministerial program

The remarks come amid debate over Iraq’s worsening
unemployment crisis and the growing strain on the public sector. Iraq’s labor
force currently exceeds 15 million people, while government institutions
already employ more than 3.7 million workers, with salaries and pensions
consuming nearly 40% of the federal budget, according to official data.

Read more: Youth in despair, no jobs to share: Iraq’s workforce hanging in the air