Shafaq News<\/p>\n
Each year, roughly 200,000 Iraqis
\ncomplete university and technical education, believing their qualifications
\nwill secure them stable employment. Instead, many enter a labor market
\nstruggling to keep pace with the growing number of graduates, leaving thousands
\nunable to find work despite their degrees.<\/p>\n
For a new generation of Iraqis,
\ngraduation no longer marks the start of professional life. It often signals the
\nbeginning of an uncertain search for work, with many competing for a shrinking
\npool of government jobs, accepting positions unrelated to their qualifications,
\nor looking abroad for opportunities.<\/p>\n
The pressure continues to mount in a
\ncountry whose population is approaching 47 million, according to World Bank
\nestimates, while hundreds of thousands of young Iraqis reach working age each
\nyear.<\/p>\n
Absorbing that expanding workforce
\nhas become one of Iraq’s biggest economic challenges. Although oil generates
\nabout 90% to 95% of government revenue, the sector creates relatively few jobs
\ncompared with its outsized role in the economy.<\/p>\n
That imbalance has also narrowed the
\nstate’s ability to remain the employer of last resort. Around 70% of public
\nspending is allocated to salaries and wages, according to Ministry of Finance
\ndata, leaving limited fiscal space to expand government hiring or invest
\nheavily in sectors capable of generating jobs on a larger scale.<\/p>\n
For decades, public-sector
\nemployment offered Iraqi graduates the clearest path to financial stability.
\nGovernment jobs provided better pay, stronger benefits, and greater security
\nthan much of the private sector. But as state payrolls expanded and fiscal
\npressures intensified, that pathway steadily narrowed, forcing a growing number
\nof graduates to compete for fewer positions.<\/p>\n
Universities, meanwhile, have
\ncontinued producing ever-larger graduating classes.<\/p>\n
Over the past two decades, Iraq has
\nsignificantly expanded access to higher education, opening universities and
\ntechnical institutes across the country. Ministry of Higher Education data from
\nthe 2024\u201325 academic year illustrate the scale of that expansion, with more
\nthan 52,000 students admitted to education and basic education programs, 29,160
\nto science, 25,076 to administration and economics, and 21,047 to engineering,
\nwhile medicine, dentistry, and pharmacy together enrolled more than 9,300
\nstudents. Yet many graduates continue to set their sights on public-sector
\nemployment because private companies remain too small to absorb the country’s
\ngrowing pool of job seekers.<\/p>\n
The imbalance extends beyond the
\nrising number of graduates. Economists point to a widening disconnect between
\nwhat universities produce and what Iraq’s economy actually needs.<\/p>\n
“Iraq’s efforts to reduce
\ndependence on oil require stronger manufacturing, technology, and service
\nindustries, but these sectors have not expanded quickly enough to create enough
\npositions for the country’s growing workforce,” economic expert Mudher
\nSaleh told Shafaq News, adding that a university degree remains highly valued
\nsocially, but for many young Iraqis it no longer guarantees a clear career
\npath.<\/p>\n
Read more: New path to jobs: Iraq\u2019s shift toward vocational education<\/a><\/p>\n Crude but Jobless<\/p>\n Despite holding some of the world\u2019s The World Bank and the International The strain is reflected in the labor International economist Nawar \u201cIraq possesses significant The consequences extend well beyond Economic expert Ziad al-Hashemi \u201cPolitical parties bear a Read more: Youth in despair, no jobs to share: Iraq\u2019s workforce hanging in the air<\/a><\/p>\n Protest over Payroll<\/p>\n For many young Iraqis, unemployment Across Baghdad and provinces Gatherings outside ministries, The issue also stood at the center The demonstrations did not end with Read more: Iraq\u2019s protests after Tishreen: A system that learned how to contain the street<\/a><\/p>\n Missing Engine<\/p>\n Successive Iraqi governments have The IMF reached a similar conclusion Much of the problem lies in the Mohammed al-Najjar, executive \u201cThe private sector\u2019s ability to Recognizing those constraints, the The Ministry of Labor and Social Al-Najjar, however, maintained that \u201cWithout broader economic In his view, the shortage of jobs Former deputy head of Parliament\u2019s Urging the National Investment Expanding those productive sectors,
\nlargest oil reserves and generating billions of dollars from crude exports,
\nIraq\u2019s petroleum sector is highly capital-intensive. It provides substantial
\ngovernment revenue but cannot absorb the hundreds of thousands of people
\njoining the labor market every year.<\/p>\n
\nMonetary Fund (IMF) have repeatedly pointed to Iraq\u2019s dependence on oil, weak
\nprivate-sector development and limited job creation as among the country\u2019s most
\npressing structural economic challenges.<\/p>\n
\nmarket. Iraq\u2019s Ministry of Planning estimated unemployment<\/a> at around 13% in
\n2025, while other estimates placed it at 15.5% during the first half of 2026.
\nYouth unemployment remains considerably higher, ranging between 28% and 32%,
\nplacing Iraq among the countries with the highest youth unemployment rates in
\nthe region.<\/p>\n
\nal-Saadi attributed Iraq\u2019s unemployment crisis to a combination of economic,
\nadministrative and political failures rather than a single underlying cause.<\/p>\n
\nfinancial, natural and human resources, but many institutions continue to
\noperate under a quota-based system rather than standards of competence and
\nachievement,\u201d al-Saadi informed Shafaq News. He maintained that this approach
\nhas slowed development projects, weakened economic planning and discouraged
\ninvestment opportunities capable of generating thousands of jobs.<\/p>\n
\neconomic indicators. <\/p>\n
\nstressed that successive Iraqi governments have failed to establish stable
\neconomic institutions, create an investment climate attractive to businesses or
\ndevelop legislation capable of encouraging investment and diversifying the
\neconomy.<\/p>\n
\nsignificant share of the responsibility after turning ministries, government
\nagencies and state-owned companies into areas of influence and sources of
\nfinancial gain,\u201d he told Shafaq News, arguing that this has expanded public-sector
\nemployment beyond sustainable levels.<\/p>\n
\nhas evolved from an economic challenge into a recurring source of public
\nfrustration.<\/p>\n
\nincluding Dhi Qar, Basra, Maysan, Najaf and other southern provinces,
\nunemployed graduates have repeatedly taken to the streets to demand government
\nhiring, recruitment opportunities and practical solutions after years of searching
\nfor work.<\/p>\n
\nprovincial administrations and other government institutions have become a
\nfamiliar feature of Iraq\u2019s public life, reflecting growing frustration among
\ngraduates who see few pathways into stable employment.<\/p>\n
\nof the 2019 Tishreen anti-government protests, when thousands of young Iraqis
\npointed to unemployment, corruption and deteriorating public services as among
\nthe main drivers of their anger.<\/p>\n
\nthe Tishreen movement. Graduate protests<\/a> persisted in the years that followed,
\nincluding throughout 2025 and 2026, as each new wave of university graduates
\njoined a labor market where opportunities remained far below demand.<\/p>\n
\nrepeatedly presented private-sector growth as the long-term answer to the
\ncountry\u2019s employment challenge. For many economists, however, the sector
\nremains too small, too reliant on public spending and too underdeveloped to
\nabsorb the hundreds of thousands of Iraqis entering the labor market each year.<\/p>\n
\nin its 2025 report, pointing to weak private-sector development as one of
\nIraq\u2019s main structural economic challenges and warning that limited economic
\ndiversification has left the country heavily dependent on public employment and
\noil revenues.<\/p>\n
\nprivate sector\u2019s relationship with the state. Many businesses continue to rely
\nheavily on government contracts and public expenditure, limiting their ability
\nto expand independently and generate large numbers of sustainable jobs.<\/p>\n
\ndirector of the Iraq Development Fund, acknowledged that private companies have
\ncreated employment opportunities but maintained that much of that growth
\nremains tied to government-funded projects and state spending.<\/p>\n
\ngenerate more jobs will remain limited unless legislative reforms allow
\nbusinesses to operate more independently,\u201d he conveyed to Shafaq News.<\/p>\n
\ngovernment has introduced several initiatives aimed at narrowing the gap
\nbetween education and employment. Under its \u201cIraq 2050\u201d vision, Baghdad seeks
\nto reduce its reliance on oil while strengthening productive sectors and
\nexpanding the private sector\u2019s role in the economy.<\/p>\n
\nAffairs has also expanded vocational training programs while promoting the
\nestablishment of a Higher Council for Training to improve coordination between
\neducational institutions and labor-market needs.<\/p>\n
\ntraining alone will not resolve the employment crisis unless Iraq also develops
\nindustries and businesses capable of absorbing those newly acquired skills.<\/p>\n
\ndiversification, stronger private-sector growth and reforms that create space
\nfor investment and job creation, Iraq\u2019s graduate boom will continue to outpace
\nthe country\u2019s ability to provide employment,\u201d he stated.<\/p>\n
\nfacing Iraqi graduates reflects a broader challenge that has shaped Iraq\u2019s
\neconomy for years: attracting enough investment to build industries, expand
\nbusinesses and generate employment on a meaningful scale.<\/p>\n
\nInvestment Committee, Suzan Mansour, shared a similar assessment, arguing that
\nIraq\u2019s investment priorities have often favored housing developments over
\nproductive industries capable of strengthening the economy and expanding
\nemployment opportunities.<\/p>\n
\nCommission to redirect investment toward projects that increase production,
\ngenerate jobs, and deliver stronger economic returns, she noted that Iraq
\ncontinues to import a large share of its food and consumer goods even as farmers
\nstruggle with rising production costs, limited access to agricultural supplies,
\nand difficulties reaching markets.<\/p>\n
\nshe added, would not only provide employment opportunities for graduates and
\nyoung workers but also reduce dependence on imports and establish the
\nfoundation for a more diversified economy.<\/p>\n