LABOUR MARKET OPPORTUNITIES AND CHALLENGES Shatt Al-Arab District, Basra 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. Shatt Al-Arab 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. Shatt Al-Arab 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 • Oil and its supporting industries- security, transportation, construction, and education were apparently the largest industries that were hiring people; 1.1. Introduction • All agreed that these jobs were desirable; and • 56% of respondents noted that the jobs tend to be dominated With sub-offices across Iraq, jointly managed Community by one group, which many suggested were the members of Resource Centres (CRCs), and a presence within Ministry of political parties. Labour and Social Affairs (MoLSA’s) sub-offices, IOM has a field presence that allows for a community driven approach to recovery and development. Under its livelihoods programming, IOM works 1.3.3. Challenges & Opportunities Facing Employers with a system of community engagement that has been refined • Businesses related to construction, agriculture and car repair through an interactive learning process, and relies on stakeholder were most likely to mention difficulty finding skilled labourers consultation throughout the design of sustainable livelihood • Self reported demand was lowest among construction related activities. In order to design market-led development interventions, businesses, and highest for those working in car repair a series of Labour Market Assessments (LMAs) were conducted. In Basra Governorate, both the Basra and the Shatt Al-Arab districts Recommendations: were selected for in-depth study. This LMA covers the Shatt Al- Support Business Support Package (BSP), Employment Arab district specifically. Support Package (ESP) and On-the-Job Training (OJT) related to car repairs and mechanics. 1.2. Study Components 1.3.4. Challenges & Opportunities Facing Consumers This LMA is based on 103 individual interviews and three youth • Electrical appliances and households items (mentioned by Focus Group Discussions (FGDs) with roughly 30 total participants, 23% of respondents), and medical services including even a conducted over a two-month period between December 2018 pharmacy (mentioned by 10%) were mentioned as unavailable and January 2019. Survey tools included a mix of quantitative and in the local market; and qualitative exercises, conducted with key informants, jobseekers, • Consumers were not found to spend significantly different youth, consumers, and employers. It focused on three communities amounts of income on rent, food, gas and electricity, or of Shatt Al-Arab – Al-Kibasi Kabeer, Al-Kibasi Saghir, and Al-Hota. transportation than in other areas of Iraq surveyed. A summary of key findings is below, followed by a fuller analysis and explanation. Recommendations: Support BSP for electrical applicant and household item 1.3. Shatt Al-Arab Key Findings vendors. 1.3.1. Challenges & Opportunities Facing Youth Provide business support to local pharmacies. • In all three communities, air conditioning repair trainings were requested; • In Al-Kabisi Kabeer, manual labour based jobs such as working 1.4. Overall Recommendations in an aluminum factory or a concrete block factory were, surprisingly, noted as desirable; Sectors to Services such as car repairs, air conditioning • In Al-Kabisi Saghir, desirable jobs were in the service sector target: repairs, auto electrics, IT. and included grocery store and restaurant jobs; and • Manual labour including car repair, painting, and carpentry Profile Youth, graduates, skilled persons. were mentioned as desirable jobs. to target: Recommendations: • Youth in Al-Kibasi Kabeer do not want Seek a training provider for air conditioning repair or on courses in haircutting, youth in Al-Kabasi Saghir and Hota would; and the job training opportunities. Notes: Look at both air conditioning for homes and for vehicles. • Women could receive support in the form of tailoring or hairdressing through On the Job trainings. 1.3.2. Challenges & Opportunities Facing Jobseekers • Graduates were listed most frequently (by 30% of respondents) as a group that should be a target for livelihood assistance, in addition to skilled and experienced persons (mentioned by 50% of respondents); 4 International Organization for Migration 2. Location and Study Overview population of approximately 80,000, its seat is the village of Al- Harita, and apart from those areas situated on or near the Shatt Al-Arab waterway, population density is low and most areas are 2.1. Introduction rural or deserted due to landmine concerns1. Recognizing that the private sector is an engine for growth, IOM works to create inclusive markets at the individual, community 2.3.2. Security and Displacement and institutional level. At the individual level, IOM has prioritized Basra governorate saw heavy fighting during the Iraq War, and support to micro enterprises. This has included providing business subsequent instability during the British military occupation that development services (including business advisory and counselling followed it. By the late 2000s, the Mahdi Army or Muqtada al- services) and business support packages (including in-kind and cash Sadr had built a stronghold in Basra, from which it was ultimately support), all of which aim to increase income generation at the driven out during the 2008 Battle of Basra, although with fighting household level. continuing afterwards. Accounts of the area thereafter2 began however to hint at the trend that would soon follow: despite relative For those individuals who need capacity development support or security since 2008, critical infrastructure needs, unemployment, who have more specific backgrounds like agriculture, IOM provides and growing poverty have led to undercurrents of unrest in the specialized skills development and training through Vocational city and surrounding districts, including Shatt Al-Arab3. In addition, Training (VT), Farming Training (FT) or On-the-Job Training (OJT), the legacy of war in the area has left the district with a critical accompanied by employability assistance inclusive of in-kind items landmine problem. A March 2017 report by the Government of tailored to enhance individual employability. For beneficiaries who Iraq outlined that over 350 square kilometers of the district were already possess relevant education or training and need to gain contaminated by landmines.4 hands-on work experience, IOM job placement and job matching initiatives link participants with businesses in growth sectors, and agrees to pay their salaries partially or fully for 3-6 months. 2.3.3. Local Concerns IOM Rapid Needs Assessments in each of the three studied At the community level, IOM provides