EXECUTIVE SUMMARY
Now in our 10th year, and since the shift in employment due to the Covid pandemic, we are pleased to present the mselect Iraq Employment Outlook Survey of more than 500 employers across Iraq in different sectors.
The Outlook Survey shows employers across Iraq are planning to increase their workforce with 78% expecting to hire, 41% of which from the larger size organisations. The Telecom industry is expecting the strongest Outlook (85%), Oil and Gas (83%), followed by, Retail, NGO, Industrial, Hospitality (75%), Technology, Professional Services, FMCG, Energy and Manufacturing (60-70%).
Low hiring expectation comes from Multi Sector Group, Construction, IT and Power (30-50%)
The weakest outlook are from the Banking, Healthcare, Education, Financial Service and Automotive (15-20%).
The survey also indicates the skills most in demand are Accounting (39.39%), Engineering (36.36%) across all industries. The least shortage is coming from Health Carers (3.03%).
Hybrid Working has been highly adopted, some employers expect 65% of Administrative, Office Support and 63% of Human Resources personnel to work a hybrid mix of workplace and remote. However, employers are not offering this for all roles - Finance & Accounting, Production and Manufacturing personnel are expected to work fully in the workplace.
50% of employers are expecting to mandate double vaccination and the booster shot alongside asking for proof of vaccination specially in the Oil & Gas Sector.
Last but not least; more than 60% of employers in Iraq don't expect any changes from their salaries and wage systems at least for the first half of 2022.
EMPLOYMENT OUTLOOK (H1)
Employer Hiring Expectations for January - June
Iraqi employers expect a robust labour market in the first half of 2022, reporting a seasonally adjusted, Net Employment Outlook of +78%.
GROWTH EXPECTED ACROSS INDUSTRIES
No sectors are expecting to lay off workers
THE LARGER ORGANISATIONS REPORT STRONGEST HIRING INTENTIONS
STRONGEST HIRING OUTLOOKS ACROSS BOTH REGIONS SINCE THE SURVEY BEGAN
Employers from different geographical locations with different industries have participated in the Employment survey with equal participation rate of 33.39% from Employers who solely operate in Kurdistan Region and Employers who operate in both regions, while the rest 21.21% coming from Employers in Federal Iraq.
Net Employment Outlook of 79.0%. Which 24.0% of it comes from Federal Iraq, 44.0% from Kurdistan Region, and 32.0% from employers operating in both regions.
Meanwhile 18.0% plan to keep their workforce steady without a change, from that percentage 17.0% of it comes from employers only operate in Federal Iraq, and likewise, 17.0% from Kurdistan Region only employers, and the rest 66.0% comes from employers with programmes in both places.
Employers don't expect to lay-off any of their employees for the first half of the year, with the exception of few employers which only make 3% of total participants who haven't decided yet.
However, employers which solely operate in Kurdistan Region are expecting to have the highest hiring for the first half of 2022.
VACCINE EXPECTATIONS FOR ONSITE RETURN
Over one-half of employers are mandating vaccines in some way for their employees to return to the workplace.
VACCINE EXPECTATION BY INDUSTRY
Power, Oil & Gas, Energy, Education, Healthcare, and Hospitality are requiring proof of double vaccination and booster shot. FMGC And Retail Companies Most Likely To Mandate Vaccines for All, While Multi-Sector Groups And Professional Service companies are leaving it for employees to decide.
VACCINE EXPECTATION BY REGIONS
Employers Who Only Operate in Kurdistan Region Are Less Likely To Mandate Vaccinations And they Only Suggest Vaccination For Their Staff.
THE GREAT SHIFT TO HYBRID WORKING
Administrative, Office Support, And Human Resources Employers Comes In First In Recognizing The Need For Hybrid Work. Finance, Accounting, And IT Comes In Second.
SKILL SHORTAGE
Companies Across Iraq Are Facing Major Skills Shortage in Accounting, Engineering, Managerial, Supply Chain & Procurement, and IT. And Face Least Shortage in Health Carers, Safety/Quality, and Legal.
CURRENCY IMPACT
67% Of The Employers In Iraq Are Not Expecting Any Salary Changes Due To IQD Currency Devaluation, At Least For The First Half 2022. And 33% Are Revising Salaries.
ABOUT THE MSELECT EMPLOYMENT OUTLOOK SURVEY
The mselect Employment Outlook Survey - conducted in January 2022 – 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 six months to the end of June 2022 as compared to the last half?"