LABOUR MARKET OPPORTUNITIES AND CHALLENGES Khanaqin District, Diyala Governorate IOM Iraq – April 2019 This programme is supported by: Labour Market Opportunities and Challenges IOM Disclaimer List of Acronyms The opinions expressed in the report are those of BEP Business Expansion Package the authors and do not necessarily reflect the views BSP Business Support Package of the International Organization for Migration (IOM). The CoC Chamber of Commerce designations employed and the presentation of material throughout the report do not imply the expression of any CoI Chamber of Industries opinion whatsoever on the part of IOM concerning the CIP Community Implementation Plan legal status of any country, territory, city or area, or of its CRC Community Resource Centre authorities, or concerning its frontiers or boundaries. ESP Employment Support Package IOM is committed to the principle that humane and FGD Focus Group Discussion orderly migration benefits migrants and society. As an FT Farming Training Intergovernmental organization, IOM acts with its partners in the international community to: assist in meeting the IDP Internally Displaced Person operational challenges of migration; advance understanding ISIL Islamic State in Iraq and the Levant of migration issues; encourage social and economic IOM International Organization for Migration development through migration; and uphold the human dignity and well-being of migrants. JP Job Placement LMA Labour Market Assessment Contact: For more information on the Return and Recovery NFI Non-Food Items Unit (RRU) programme and current activities taking place in Iraq, please contact: [email protected] MoLSA Ministry of Labour and Social Affairs OJT On-the-Job Training Main Office in Baghdad SME Small and Medium Enterprise UNAMI Compound DIWAN 2 International Zone, Baghdad, Iraq. VT Vocational Training Tel: +3908 3105 2600 ext. 5857/5928 E-mail: [email protected] 2 International Organization for Migration Table of Contents IOM Disclaimer 2 List of Acronyms 2 1. Executive Summary 4 1.1. Introduction 1.2. Study Components 1.3. Khanaqin Key Findings 1.3.1 Challenges & Opportunities Facing Youth 1.3.2 Challenges & Opportunities Facing Jobseekers 1.3.3 Challenges & Opportunities Facing Employers 1.3.4 Challenges & Opportunities Facing Consumers 1.4. Overall Recommendations 2. Location and Study Overview 5 2.1. Introduction 2.2. LMA Overview 2.3. Khanaqin District Overview 2.3.1 Location and Demographics 2.3.2. Security, Displacement, and Returns 2.3.3. Local Concerns 2.4. LMA Methodology Overview 2.4.1. Key Informant Interviews 2.4.2. Youth Focus Group Discussions 2.4.3. Jobseeker Surveys 2.4.4. Employer Surveys 2.4.5. Consumer Surveys 3. Findings 7 3.1. Key Informant Interviews 3.2. Youth Needs and Priorities 3.3. Jobseeker Needs and Priorities 3.4. Employer Needs and Priorities 3.5. Consumer Needs and Priorities 3.6. Community Implementation Plan (CIP) Recommendations 4. Conclusions 9 3 Labour Market Opportunities and Challenges 1. Executive Summary 1.3.3. Challenges & Opportunities Facing Employers • The most pressing challenge mentioned was security, including 1.1. Introduction damaged infrastructure, delays due to transportation issues, and the instability in the region; With sub-offices across Iraq, jointly managed Community • 10 out of 17 businesses visited mentioned interest in having or Resource Centres (CRCs), and a presence within Ministry of experience with training apprentices; Labour and Social Affairs (MoLSA’s) sub-offices, IOM has a field • Service and trading related businesses remarked on difficulty presence that allows for a community driven approach to recovery finding skilled workers; and and development. Under its livelihoods programming, IOM works • Goods that were hard to find in the market included chemical with a system of community engagement that has been refined products, electrical devices, construction materials, and through an interactive learning process, and relies on stakeholder aluminum. consultation throughout the design of sustainable livelihoods activities. In order to design market-led development interventions, Recommendations: a series of Labour Market Assessments (LMAs) were conducted. Look into grants for chemical, electrical, construction, and In Diyala Governorate, the Khanaqin district was selected for in- metal businesses. depth study. 1.2. Study Components 1.3.4. Challenges & Opportunities Facing Consumers This LMA is based on 77 individual interviews and two youth Focus • Consumers spend significantly more in surveyed areas of Group Discussions (FGDs) with roughly 20 total participants, Khanaqin district on food, indicating a possible hike in prices conducted over a two-month period between December 2018 due to agricultural production decreases; and January 2019. Survey tools included a mix of quantitative and • The most frequently mentioned good that was hard to find qualitative exercises, conducted with key informants, jobseekers, include fuel, electricity, and water, mentioned each 66% of the youth, consumers, and employers. It focused on two communities time; and of Khanaqin – Jalawla and Al-Sadiya. Some of the data for this LMA • Only 10% of the participants or their family members has also comes from Baqubah district, a neighboring area to the west saving, and their average monthly saving for that respondent and the capital of Diyala governorate. A summary of key findings is was 10% of their salary. below, followed by a fuller analysis and explanation. Recommendations: 1.3. Khanaqin Key Findings Use cash based interventions to help the food sector and reduce price hikes of food. 1.3.1. Challenges & Opportunities Facing Youth Target the agricultural sector to reduce the price • Youth in Jalawla felt that leadership and training courses were and increase the supply of food. oversaturated in their community; • Desirable job types included working with computers and as humanitarians; and • Two female participants in Al-Sadiya especially remarked on 1.4. Overall Recommendations the desire to teach. Sectors Services, trading, agriculture and food, chemical, 1.3.2. Challenges & Opportunities Facing Jobseekers to target: electrical, construction, and metalworking. • Jobseekers felt that graduates and low income people should Profile Graduates, vulnerable persons, widows, and war be a priority for livelihoods assistance, in addition to widows, To target: affected persons. people most affected by the war, the unemployed, and • Check for food price hikes; entrepreneurs; • Focus On-the-Job Training (OJT) and Job • There was very low confidence in local government Notes: Placement (JP) on service industry jobs; and representatives and the government of Iraq to create long • Grant to the agricultural/food sector. term and sustainable income in the communities where surveying was done; and • 40% of jobseekers responded that they would like to work for someone else, a higher than average rate for this. Recommendations: More job placement can be provided here. If possible, service industry businesses such as in markets and trading could be matched with Job Placement (JP) beneficiaries. Target graduates, vulnerables, widows, and war affected persons. 4 International Organization for Migration 2. Location and Study Overview 2.3. Khanaqin District Overview 2.3.1. Location and Demographics 2.1. Introduction Khanaqin is a district in the Diyala governorate. It is Diyala’s second Recognizing that the private sector is an engine for growth, IOM largest district and as of 2011 had a population estimated at works to create inclusive markets at the individual, community 300,000 in 2017. Its administrative centre is the city of Khanaqin and institutional level. At the individual level, IOM has prioritized but its large landmass comprises several other towns and numerous support to micro enterprises. This has included providing business more villages. The district’s population is largely Shia Kurd, with a development services (including business advisory and counselling sizeable number of Turkmen and some Shia Arabs as well. For services) and business support packages (including in-kind and cash example, Jalawla has been known as “Little Iraq” for the way that support), all of which aim to increase income generation at the these 3 ethnic groups blended and represented the population of 1 household level. the country on the whole. For those individuals who need capacity development support or 2.3.2. Security and Displacement who have more specific backgrounds like agriculture, IOM provides specialized skills development and training through Vocational Khanaqin underwent an “Arabization” policy under Saddam Hussein Training (VT), Farming Training (FT) or On-the-Job Training (OJT), in the 1970s on, which displaced many Shia Kurds and Turkmen accompanied by employability assistance inclusive of in-kind items while bringing in Shia Arab families. With the fall of the Hussein tailored to enhance individual employability. For beneficiaries who regime, many of the originally displaced sought to return. Further, already possess relevant education or training and need to gain during the ISIL occupation and attacks on of parts of North- hands-on work experience, IOM job placement and job matching western Iraq, numerous people fled to Khanaqin and surrounding initiatives link participants with businesses in growth sectors, and areas. During this period Khanaqin city’s mayor did not indicate agrees to pay their salaries partially or fully for 3-6 months. any major