Employment of Record Iraq is controlled by Iraqi Labour Laws. The law stipulates that Iraqi citizens are granted the first priority over foreigners. Only when there aren’t competent Iraqis suitable for the job is an employer able to hire foreigners.
Though there is no law saying that an employer needs to hire a specific number of Iraqi citizens. The regulations regarding employment are controlled by the Social Security Law. People who go to Iraq for job-related purposes require a special license to stay and work there.
Labor laws in Iraq vary by organization location, with the Iraqi Labour Law (Law 37/2015) and the Kurdish Labour Law (Law 71/1987) being the most effective. Termination laws are complex and expected to undergo significant changes.
Present Statistics of Employment in Iraq
Employment of Record Iraq: The employment growth in Iraq recently took a hit. The employment rate dropped 28.20 percent in the year 2018. Previously, in the year 2016, the rate was 40.20 percent. The highest employment rate from the year 2003 to 2018 was 49.72 percent. And the lowest was 28.20 percent. The current unemployment rate in the country is 7.90 percent.
Economy of Iraq
The Iraqi economy is mainly dependent on its oil sector. This sector is responsible for 99.7 percent of foreign exchange earnings. Iraq holds the 14th position in the middle eastern economy list.
Its economic situation in Iraq has been hit hard by decades of civil war as well as terrorist attacks. However, it is slowly but slowly but surely getting better. Apart from the petroleum sector agriculture is crucial to Iraq’s economy. Iraqi economy. The country is focusing on generating jobs and improving its infrastructure. To achieve this to achieve this goal, for this purpose, the World Bank has invested billions of dollars.
Fields of Employment in Iraq
A brief description of the top three employment sectors in Iraq is given below:
1. Oil/Petroleum
Iraq is home to 12% of the proven oil reserves in the world. Iraq’s economy is based mostly on the oil business, as was previously established. The nation was ranked as the world’s fifth-largest oil producer in 2009.
The industry is so lucrative that it contributes to nearly 70% of nation’s GDP. The production and sale of oil is responsible for 85 percent of Iraqi government’s revenues. The energy sector in the country is largely driven by the petroleum industry. Iraq was the first country to establish in the Organization of Petroleum Exporting Countries (OPEC).
It is the second-largest oil producing country. The size of the nation’s reserves of oil is around 100 billion barrels. In August of 2019 the country recorded its highest oil production at 4.88 million barrels of oil per day (BPD) according to S&P Global Platts. The oil-producing regions that are the richest in Iraq include the capital city Baghdad, Basra, Ramadi and Baaj.
2. Agriculture
After the petroleum industry, agricultural production is a contributor to Iraq’s economic growth. The sector makes up 7% of the country’s GDP. 15% of the country’s total land, which is 8 million hectares, is cultivable. Even so, only about 4–5 million hectares are use for agriculture. In this industry, around 22% of Iraqis work. The primary purpose of the country’s northeast and north areas is to grow crops.
The two major crops grown in Iraq are wheat and barley. Other crops include rice, various vegetables, dates, sugar cane, and citrus fruits. A large amount of date production comes from Iraq.
3. Service Sector
A major portion of Iraq’s labor force is employed in this sector. The service sector includes tourism, finance, and telecoms. It also includes government services, transportation, corporate services, IT services, and retail.
This sector provides 40.6% of Iraq’s GDP. The oil industry provides funding for the service sector. It also provides funding for the majority of government services, including health and education. Iraqi citizens get free health care and education up to university level.
So, these are the three pillars of Iraq’s economy.
Current Employment of Record Iraq: Benefits that an Employee Gets in Iraq
Every Iraqi citizen enjoys a set of benefits as stipulated by the country’s labor code. These benefits include:
1. Medical Leave
Every employee in Iraq is entitled to 30 days of paid sick leave every year. After the 30 periods are over, an additional 180 days of sick leave is provided by the insurance provider of the employee. The employee seeking leave will have to show medical documents provided by a doctor as evidence.
2. Maternity Leave
The maximum amount of paid maternity leave that is eligible for granted to all female employees is 72 days.
3. Annual Leave
Workers get 20 days of paid leave. In case of danger related to work, then it is 30 days paid leave. After every 5 years, period employees get an extra 2 days of annual leave.
4. Pension
The Iraqi System of Welfare and Benefits oversees pensions. Direct deductions of 5% of the employee’s pay are made. Employer contributions to health insurance, pensions, and work-related injuries total 12% of the employee’s pay. The employer in the oil and gas sector pays these expenses out of a worker’s wage, up to a maximum of 25%.
Employment Conditions for Foreigners: Current Employment of Record Iraq
Foreigners require a special permit for working in Iraq. According to the country’s labor law, there is a clear distinction between foreigners and Arabs. Arab laborers in Iraq do not require any form of authorization to work because they qualify as citizens of Iraq.
Iraqi employees must notify the labor office ten days in advance of the start of work. Arab employees need to inform the office within 30 days. Foreign employees, on the other hand, cannot start work until they receive the permit. However, only if a company has branches in other countries, then those employees from the foreign branches do not have to follow this rule.
Iraq is still under the effects of war like many Middle Eastern countries, but it is trying its best to recover. The large reserve of oil has always supported the Iraqi economy. And it continues to do so.
Posted by: Urban Clap Dubai Team in reference to Current Employment of Record Iraq.