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Kufa, Najaf Governorate LABOUR MARKET OPPORTUNITIES AND CHALLENGES Kufa, Najaf Governorate IOM Iraq – May 2020 This programme is supported by: List of Acronyms BEP Business Expansion Package BSP Business Support Package CIP Community Implementation Plan CoC Chamber of Commerce CoI Chamber of Industries CRC Community Resource Centre ESP Employment Support Package FGD Focus Group Discussion FT Farming Training IDP Internally Displaced Person ISIL Islamic State in Iraq and the Levant IOM International Organization for Migration JP Job Placement LMA Labour Market Assessment NFI Non-Food Items MoLSA Ministry of Labour and Social Affairs OJT On-the-Job Training SME Small and Medium Enterprise VT Vocational Training IOM Disclaimer The opinions expressed in the report are those of the authors and do not necessarily reflect the views of the International Organization for Migration (IOM). The designations employed and the presentation of material throughout the report do not imply the expression of any opinion whatsoever on the part of IOM concerning the legal status of any country, territory, city or area, or of its authorities, or concerning its frontiers or boundaries. IOM is committed to the principle that humane and orderly migration benefits migrants and society. As an intergovernmental organization, IOM acts with its partners in the international community to: assist in meeting the operational challenges of migration; advance understanding of migration issues; encourage social and economic development through migration; and uphold the human dignity and well-being of migrants. © 2020 International Organization for Migration (IOM) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher. TABLE OF CONTENTS List of Acronyms 2 IOM Disclaimer 2 Table of Contents 3 Executive Summary 4 Study Introduction 6 Labour Market Assessment Overview District Overview Assessment and Methodology Overview Findings 8 Attitudes Towards Entrepreneurship and Cash Types of Jobs Available Skills Gaps Recruitment Mechanisms Supply-side Bottlenecks Demand-side Bottlenecks Conclusions 12 Labour Market Opportunities and Challenges EXECUTIVE SUMMARY IOM conducts livelihood programming in 15 out of 18 • Employers reported that working hours averaged 8.4 governorates in Iraq. As part of the Returns and Recovery hours per day (less than one third reported 9 hours and/ Unit programming, the International Organization for or above per day). No business owner mentioned having Migration (IOM) undertook a labour market assessment a written contract with workers. (LMA) in Kufa district in Najaf in December 2019 and • The average salary for skilled workers is 404 United States January–February of 2020. dollars (USD) and USD 227 for unskilled workers. LMAs have been conducted in over 30 locations across Iraq • Women-owned businesses generally include accounting, and give insights on the state of the local market in a given tailoring, beauty salons, food processing, trade (including area, the hiring preferences of employers and the available abayas), and photography services. Almost all respondents skills and aspirations of jobseekers, among others. thought these businesses were profitable. STUDY COMPONENTS • Multistakeholder workshops did not point to a lack of skills in Barakiya, but identified a lack of laundry services, LMAs consist of both qualitative and quantitative exercises: carpentry, photography services (for both men and Key Informant Interviews (KIIs), multisectoral community women), printing and typing services, and tailoring for workshops and surveys with jobseekers, employers and women. consumers. • While jobseekers mostly did not know about a job centre, This LMA focused specifically on Kufa district, Najaf they suggested that job centre services could be offered Governorate. in the centre of the community. A summary of key findings is included below, followed by • Most employers reported personal connections and word recommendations for future interventions. of mouth as their main hiring mechanisms. KEY FINDINGS • The most common challenge facing employers is • Fifty-eight per cent of jobseekers noted a preference for competition, followed by low demand and economic owning their business, suggesting a slight preference for stagnation in general. Some also mentioned traffic entrepreneurship in Kufa. congestion. • Key informants did not feel that cash support would cause • The highest salaries of skilled workers are mostly found inter-household and community conflict. However, 77 per among butchers, in addition to less mentioned businesses cent of the jobseekers surveyed reported that people are such as honey production, baked goods, pickles, a not comfortable paying for goods and services in cash cafeteria, a smithery, a gift shop, a clothing retailer, and and 64 per cent of jobseekers reported preferring in-kind motorcycle tools. Overall, the food sector dominates the assistance over cash assistance. above-average salaries. • Jobseekers reported that the main economic sectors • Businesses with high demand paying higher salaries in Kufa include the private sector, without additional include two butchers, a bakery, and a cafeteria. Employers specifications. A small number mentioned the Popular reporting average demand but still paying higher salaries Mobilization Forces, daily paid jobs in various sectors, include many businesses in the food sector (a bakery, a stores, construction, and private education as employing butcher, honey, and pickles production) in addition to a most of the workforce. All jobs were considered desirable. blacksmith, an aluminum workshop, a clothing shop, a gift shop, a barber, a shopping mall and a stationery shop. • Key informants mentioned that the sectors currently employing most people in Kufa include trade, especially markets and malls, followed by the industrial sector, clothes retailers, restaurants, and others. 4 IOM IRAQ Labour Market Opportunities and Challenges Recommendations Agriculture, industrial sector, food processing, and services (taxi, online retail, photography, tailoring, advertising, marketing, printing, religious tourism). Manufacturing SECTORS TO TARGET (a blacksmith, an aluminum workshop) and trade (clothing, gifts, stationery) reported high demand and paying high salaries, so they should be also targeted SECTORS TO AVOID No sector in particular • Business support packages in laundry services, carpentry, photography services (for men and women), printing and typing, and tailoring (for women), mechanics, plumbing, electrical skills, welding ACTIVITIES TO TARGET • Vocational training was not mentioned • On-the-Job training was requested and the presence of graduates was reported but details not given • Farming training (details were not given) ACTIVITIES TO AVOID No activity in particular Consumers do not have any savings and a small number also have debts. CFW is there- CASH FOR WORK (CFW) fore recommended. In Barakiya, waste removal and installing pipes to connect some areas to the water network were proposed by the workshop’s participants In-kind support is recommended as 77% of the jobseekers surveyed reported that UNRESTRICTED CASH people are not comfortable paying for goods and services in cash and all employers have multiple suppliers Youth (also mentioned by workshop participants), female-headed households, graduates, PROFILES TO TARGET persons with disabilities, unskilled workers, older people and internally displaced persons NOTES Many consumers reported travelling to other areas to buy clothes Table 1. Recommendations IOM IRAQ 5 Labour Market Opportunities and Challenges STUDY INTRODUCTION IOM recognizes that the private sector is an engine for growth; While people have access to tap water, quantity is reportedly therefore, it strives to create inclusive markets at the individual, insufficient, especially in summer. Issues with water quality community and institutional levels. At the individual level, IOM were also reported, as well as poor water network coverage, has prioritized support to micro enterprises, including providing which forces some households to connect illegally to the business development services (for example business advisory existing water network. Problems with wires and transformers services) and Business Support Packages (BSPs), including were reported as the power network is overburdened in-kind and cash support, all of which aim to increase income because of the high number of users. Only one health centre generation at the household level. was reported as being accessible, and it lacks medicines and equipment, among other limitations. In schools, the pupil- For those individuals who need capacity development support teacher ratio is high. Some schools do not have access to or who have specific backgrounds such as agriculture, IOM running water and others do not have windows. The market provides specialized skills development and training through in Al-Shuhada is almost entirely destroyed and purchasing Vocational Training (VT), Farming Training (FT) or On-the-Job power among people is low. Workshop participants said Training (OJT), accompanied by employability assistance that no one is interested in repairing the market. The major – inclusive of in-kind items tailored to enhance individual employers before the crisis included the industrial sector in employability. For beneficiaries who already
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