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Labor market and foreign labor
Economic 2024/08/07
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The labor market in Iraq should be studied as a rentier country, still living in the stage of economic adaptation and suffering from structural imbalances and fundamental transformations in the economic structure.
Whenever some media outlets like a media article that mentions the labor market bloated with numbers of unemployed, we hear numbers and opinions that go east and west on this file, as it is a controversial topic and a source of polarization for people’s conversations with the increasing crowding for job opportunities and the repetition of what the media talks about regarding the presence of about 900 thousand foreign workers who have not obtained permits from the Ministry of Labor, at a time when the sectoral work environment and its supporting circles are expanding and the number of projects that require more workers is increasing in addition to private sector projects and small projects that support the market movement, but they do not match and cannot absorb the huge numbers of university graduates annually in addition to the unskilled unemployed workers.
Through these features, the labor market in Iraq should be studied as a rentier country, still living in the stage of economic adaptation and suffering from structural imbalances and fundamental transformations in the economic structure, as the rise in prices and the cost of living necessarily affects labor wages, which are relatively high compared to wage rates in neighboring countries and some countries that suffer from structural economic problems, which makes the work environment attractive to skilled and unskilled workers officially, so what if some of them are immigrants without a residence or work permit, as they resort to working for low wages in exchange for food and housing, at a time when some manual and craft professions are devoid of workers in supporting professions and construction and service sectors, due to the reluctance of the Iraqi worker who faces a high-priced consumer market, in search of a job opportunity with high or at least suitable wages, which makes the labor force coming from these countries in place of the local labor force, which increases the employers’ adherence to unlicensed immigrant workers and increases the size of the monetary mass that flows abroad daily in addition to the monetary mass Which finances foreign trade with increasing consumption rates and the inability of real sectors to meet the local market's need for these goods.
On this basis, it is difficult to address the issue of expatriate labor in isolation from regulating the labor market, and it is difficult to regulate the labor market without fundamental treatments for the structural imbalances in the macroeconomy in a way that ensures the implementation of the economic laws that have been legislated over the past years, most notably the Labor Law, the Retirement and Social Security Law for Workers, the Competition and Anti-Monopoly Law, the Local Product Protection Law, and laws related to the work environment and consumer protection, as it is easy to penetrate the labor market with unlicensed foreign labor without regulating
market relations.
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