EXECUTIVE SUMMARY
We are pleased to present the annual mselect Iraq Employment Outlook for 2023, put together using survey data from over 1,000 employers across sectors.
In the aftermath of the Covid-19 pandemic, new difficulties such as currency inflation, as well as other challenges, have had and will continue to have an effect on employment trends. Analysis of data of this kind is beneficial for employers and employees alike to navigate both the present and the future of employment in Iraq.
Only 7% of employers expect to lay off workers this year while 36% expect to keep employment levels steady and 41% plan to hire. 15% remain undecided. Lower hiring expectations come from the sectors of Banking, Education, Retail, and NGOs.
Small and medium-sized businesses have a slightly higher hiring expectancy than very large or micro-sized ones. Manufacturing, FMCG, Healthcare, Industrial, and Multi-Sector Groups are the industries which have the highest hiring expectancy.
Skills shortage is a critical factor to consider in employment, both for employers and employees. Most notably, 30% expressed concern for shortage in accounting skills.
The data demonstrates that the effects of the Covid-19 pandemic have largely receded, with the vast majority of employers having their employees work in the workplace all of the time. Despite this fact, employers still have some employees work from home, particularly IT positions.
Finally, the topic of currency devaluation was of concern to many, to which 69% said they would keep salaries unchanged, while the remaining 31% stated that they would revise salaries.
EMPLOYMENT OUTLOOK
The majority of employers expect to hire or keep workforce levels steady: more than 77%. Around 15% are undecided and only 7% expect to possibly lay off workers. Most significantly, more than 41% "plan to hire", signaling greater growth and prospects.
WHAT ARE YOUR HIRING EXPECTATIONS FOR 2023?
HIRING INTENTION BY REGION
WHAT IS YOUR INDUSTRY AND SIZE OF ORGANISATION?
Sectors such as financial services are mostly small-scale (<10), while other sectors, such as telecommunications, have large (250+) employee counts. Manufacturing, FMCG, Healthcare, Industrial, and Multi-Sector Groups are the industries which have the highest hiring expectancy. By contrast, Banking, Education, NGOs, and Retail expect to hire the least.
WHAT IS YOUR INDUSTRY AND SIZE OF ORGANISATION?
MICRO <10, SMALL 10-49, MEDIUM 50-249, LARGE 250+
HIRING EXPECTATION BY SECTOR
HIRING EXPECTATION BY ORGANISATION SIZE
Micro 30%
Small 45%
Medium 40%
Large 35%
HYBRID WORKING
A noticeable number of employees are working from home. Though the Covid-19 pandemic has largely been overcome, the experience provided an insight into the possibilities, challenges, and advantages of working from home. There are also many hybrid schedules. Despite the variety of arrangements, vast majorities continue to work on site and in the office, indicating a return to normalcy.
ARE YOU OFFERING HYBRID WORKING IN YOUR ORGANISATION?
SKILLS SHORTAGE
Skills are a critical element in any operation. Most employers agree that accounting is the skill most lacking in Iraq, with project management and sales/business development coming in at second and third place, respectively.
This illustrates where employers need to allocate more resources in terms of learning and development.
ARE YOU SEEING A SKILLS SHORTAGE IN ANY OF THE FOLLOWING ROLES?
THE IQD CURRENCY DEVALUATION
Currency value fluctuations have become important consideration for many. Roughly one-third are revising salaries to accommodate currency devaluation while the other two-thirds prefer to keep salaries unchanged.
WHAT ARE YOU DOING TO COUNTER THE IQD CURRENCY DEVALUATION?
EMPLOYEE INSIGHTS
POLL 1: WHEN WAS THE LAST TIME YOU UNDERTOOK A TRAINING SESSION PAID FOR BY YOUR CURRENT EMPLOYER?
POLL 2: WHAT IS YOUR EMPLOYERS RAMADHAN POLICY
POLL 3: DOES YOUR EMPLOYER ALLOW YOU TO WORK REMOTELY?
POLL 4: ARE YOU HAPPY WITH YOUR JOB?
POLL 5: HOW OFTEN DOES YOUR EMPLOYER PROVIDE YOU WITH TRAINING PER YEAR?
POLL 6: DOES YOUR EMPLOYER HAVE A COMPETENCY MANAGEMENT PLAN?
POLL 7: HOW IMPORTANT ARE A COMPANY'S CULTURE AND VALUES FOR YOU?
Employees universally and unanimously agreed that a company's culture and values are extremely important. This validates the critical need to create a work environment in which employees can identify with the company, have a sense of dignity and respect, and feel that they are contributing to something meaningful.
ABOUT THE IRAQ EMPLOYMENT OUTLOOK 2023
The Iraq Employment Outlook 2023, conducted in the 1st quarter of 2023, is the most comprehensive, 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 2023 as compared to the last year?