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Al-Khalis, Khalis Arfan District, Diyala Governorate

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Al-Khalis, Khalis Arfan District, Diyala Governorate LABOUR MARKET OPPORTUNITIES AND CHALLENGES Al-Khalis, Khalis Arfan District, Diyala 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 that the construction sector and trade with construction governorates in Iraq. As part of the Returns and Recovery materials were dominated by certain groups (without Unit programming, the International Organization for specifying which ones). Migration (IOM) undertook a labour market assessment • Key informants mentioned that the sectors currently (LMA) in Al-Khalis in Diyala Governorate from December employing most people were in agriculture, construction 2019 to February 2020. LMAs have been conducted in (and daily paid jobs in construction), trade, grocery shops, over 30 locations across Iraq and give insights on the state malls, and internet companies. of the local market in a given area, the hiring preferences of employers and the available skills and aspirations of • Employers reported that working hours averaged 8.5 jobseekers, among others. hours per day (the majority reported 9 hours or more). Business owners do not have written contracts with STUDY COMPONENTS workers. LMAs consist of both qualitative and quantitative exercises: • The average salary for skilled workers is 339 United States Key Informant Interviews (KIIs), multisectoral community dollars (USD) and USD 246 for unskilled workers. workshops and surveys with jobseekers, employers and • One third of employers reported a preference for men to consumers. fill some positions, including in cafes, restaurants, grocery This LMA focused on Mansouriya sub-district in Al-Khalis, shops, as electrical appliances technicians, and for jobs in one of the districts of Diyala Governorate, specifically on a snooker club. the village of Al-Jabal. • Women-owned businesses generally include tailoring, A summary of key findings is included below, followed by food preparation (including baked goods), trade, beauty recommendations for future interventions. salons, hairdressing, women’s accessories, and ‘businesses from home’ in general. These businesses were reported KEY FINDINGS to earning about USD 127 per month (or more, as many • Jobseekers overall prefer to own their business (87%) respondents reported an income range). A couple of pointing to a preference for entrepreneurship in the jobseekers thought that women do not make a profit, community. referring to businesses in tailoring and other ‘small businesses.’ • The vast majority of informants felt that cash support would not cause inter-household and community conflict. • Workshop participants discussed the need for courses in tailoring, hairdressing and wedding planning and • While almost all jobseekers reported that people are not management for women, in addition to barbering courses comfortable paying for goods and services in cash, almost for men. 53 per cent of jobseekers reported preferring cash, 33 per cent in-kind assistance, and the remaining mentioned • Jobseekers thought that no sector had difficulty in finding ‘other’. adequately trained employees. Employers also reported not experiencing difficulties in finding adequately trained • Workshop participants in Al-Jabal mentioned that the employees except for one barber. main economic sectors include agriculture and private businesses, without specifying further. • Almost half of the businesses surveyed have experience in providing apprenticeships, including employers/owners • Jobseekers reported that the main economic sectors of grocery shops, coffeeshops, electrical installation/ include agriculture, construction, retail (household items, construction shops, confectionery shops, welding furniture, electrical appliances and clothing) and trade workshops, electrical appliances shops as well as bakers (agriculture and construction materials), groceries, food (in and a barber. general, and bakeries), manufacturing (welding, smitheries, PVC), carpentry, services (photography, mechanics, cafes, • While jobseekers mostly did not know about a job centre, barbers and tailors), and restaurants. All jobseekers though they suggested that job services could be offered in the that these jobs were desirable. Four jobseekers reported community’s centre or in Al-Mansouriya’ centre. 4 IOM IRAQ Labour Market Opportunities and Challenges • Most employers reported personal connections and word club, a construction material shop an electrical items of mouth as their main hiring mechanisms. and construction material shop, an electrical installation shop, and a welding workshop. These could be therefore • Employers mostly opposed hiring through more formal considered potentially sustainable, as businesses and in channels due to perceived corruption and lack of remuneration capacity. transparency. • While grocery shops experience all types of demand, these • No businesses with high demand and paying higher mostly pay lower salaries. Nonetheless, many groceries still salaries (or salaries above the average of all salaries), pay salaries slightly below the average, which could be still were found. Businesses with average demand and paying considered fairly high. higher salaries include three cafes, a market, a snooker Recommendations Agriculture/livestock, manufacturing, restaurants, textile (including clothing for men), and industry in general (sand, gravel, etc.). Workshop participants also mentioned that a kindergarten is required. SECTORS TO TARGET Construction appears dominated by certain groups and should be therefore supported with caution considering group power dynamics. Construction should not be avoided as it was historically an important sector in this location, with high potential for job crea- tion reported the workshop participants SECTORS TO AVOID N/A • Vocational training (VT) in ‘craft’ occupations such as carpentry, blacksmithing and barbering were suggested. VT in tailoring and hairdressing was suggested for women • On-the-Job training was not explicitly mentioned • Farming training was suggested • Business support packages and business expansion packages (BSP/ESP) in wedding ACTIVITIES TO TARGET planning and decoration was suggested for women, in addition to hairdressing and tailoring. Typical women-owned businesses to target were also suggested, there- fore food preparation, beauty salons, hairdressing, women’s accessories, and trade with other goods in general. For men, ‘crafts’ such as carpentry, blacksmithing, and barbering, in addition to trade in groceries could be supported through BSP/ESP. In general, it was suggested to expand existing small businesses • Job placements were also suggested ACTIVITIES TO AVOID N/A Most consumers do not have any savings. A small number have debts. CFW is therefore CASH FOR WORK (CFW) recommended, including in general waste removal, school rehabilitation, and rebuilding of damaged houses Cash support is recommended, as slightly more than half of jobseekers prefer cash and UNRESTRICTED CASH key informants thought cash support would not cause community conflicts Youth, female-headed households, graduates, persons with disabilities, older people, and PROFILES TO TARGET less mentioned groups such as unskilled workers, returnees, and internally displaced persons NOTES N/A Table 1. Recommendations IOM IRAQ 5 Labour Market Opportunities and Challenges STUDY INTRODUCTION
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