EXECUTIVE SUMMARY
In our 12th consecutive year of operations in Iraq, we are pleased to present the mselect Iraq Employment Outlook 2024. This report is based on survey data collected from thousands of employers in Iraq across various industries. Analysis of this data provides valuable insights for both employers and employees, helping them navigate the current and future employment landscape in Iraq.
This year, several challenges have emerged that continue to impact employment trends, including the disparity between the Central Bank of Iraq (CBI) and the market USD-IQD exchange rates and the new regulations by the CBI regarding salary payments. There are other challenges, such as security, political, and geographical turbulences.
With regards to hiring expectations, it is worth noting that employers in Central and Southern Iraq, where there is highest economic activity and a large number of active projects, have a hiring expectancy of 47%. In contrast, only 32% of employers in the North expect to hire in 2024.
Across all sectors in Iraq, only 7% of employers expect to decrease their workforce this year, while 34% plan to maintain their current employment levels, and 29% have intentions to hire new employees. A significant portion, 30%, remain undecided, which has doubled since last year. Amongst the different industries, those of Banking, Industrial, and Multi-Sector Groups have the lowest hiring expectations.
A skilled workforce is crucial role in any business, and the survey revealed that employers identify Technical Engineering as the most lacking skill in Iraq, followed by Project Management and Business Development.
One of the key factors influencing employment in 2024 is the disparity between the CBI and market exchange rates. This factor determines the currency in which employees will be paid. The survey found that for every person paid in cash, three are paid through the bank. Furthermore, the majority (61%) of employees receive their salaries in IQD. The exchange rates used include the market rate (12%), an agreed-upon, compromised rate (14%), and the CBI rate (21%). For the remaining 53%, their salaries were in IQD before the fluctuations and regulations took effect.
The announcements made by the CBI regarding requirements related to currency have raised concerns among many respondents. A significant number (75%) stated they would not make any changes to salaries, while 20% reported increasing salaries to compensate for the difference between the CBI and market rate. On the other hand, 6% experienced a decrease in their salaries in 2024. Nearly 75% of companies did not provide bonuses in 2023.
In terms of learning and development, approximately 65% of employers did not enrol their workforce in any training last year. For 2024, 56% of employers are intending to facilitate courses for their staff, with a focus on Leadership & Management, Project Management, and Health and Safety.
HIRING INTENTIONS
The majority of employers, comprising over 74%, anticipate maintaining or expanding their current workforce levels. Approximately 30% remain undecided, while 7% anticipate potential workforce reductions. Notably, more than 30% express intentions to increase hiring, indicative of sustained growth and promising opportunities.
HIRING INTENTION BY REGION
WHAT IS YOUR INDUSTRY AND SIZE OF ORGANISATION?
Various sectors exhibit distinct scales of operations, with sectors such as Financial Services predominantly comprising small-scale establishments (<10 employees), while industries such as Oil & Gas and Telecommunications have larger employee counts (250+). The sectors of Retail, Manufacturing, and Financial Services show the highest expectations for hiring, in contrast to Banking, Industrial, and Multi-Sector Groups, which anticipate comparatively lower hiring rates.
WHAT IS YOUR INDUSTRY AND SIZE OF ORGANISATION?
HIRING EXPECTATIONS BY SECTOR
HIRING EXPECTATION BY ORGANISATION SIZE
SKILLS SHORTAGE
Skills constitute a pivotal component of operational success. Employers widely identify Technical Engineering skills as the most in-demand in Iraq, followed by Project Management and Business Development, respectively. This underscores the necessity of employers to allocate more resources towards learning and development.
ARE YOU SEEING A SKILLS SHORTAGE IN ANY OF THE FOLLOWING ROLES?
BONUSES AND PAY CHANGES
AT THE START OF THIS YEAR - DID YOU RECEIVE:
DID YOU RECEIVE A BONUS?
IS YOUR SALARY PAID IN CASH OR VIA BANK TRANSFER?
IN WHICH CURRENCY?
LEARNING & DEVELOPMENT
HOW MANY TRAINING COURSES DID YOUR COMPANY PROVIDE IN 2023?
A notable finding reveals that the majority of employers did not enrol their staff in any training programs throughout 2023. This serves as a contributing factor to the skills shortages outlined before, highlighting the need for increased investment in employee learning and development initiatives to close the skills gap.
DOES YOUR COMPANY ANTICIPATE ENROLLING EMPLOYEES IN TRAINING COURSES IN 2024?
FOR THOSE EXPECTING TO OFFER TRAINING, MOST ANTICIPATED COURSES ARE
ABOUT THE IRAQ EMPLOYMENT OUTLOOK 2024
The Iraq Employment Outlook 2024, conducted in the 1st quarter of 2024, is the most comprehensive and forward-looking employment survey, used nationwide as a key economic indicator. The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.
Independent
The survey is conducted with a representative sample of employers from throughout Iraq. The survey participants are not derived from mselect's client base.
Robust
This sample allows for analysis to be performed across specific sectors and regions to provide more detailed information.
Focused
The survey has derived information from one main question: "How do you anticipate total employment at your location to change in the twelve months to the end of 2024 as compared to the last year?