Labour Market Opportunities and Challenges

LABOUR MARKET OPPORTUNITIES AND CHALLENGES

Kalar, Sulaymaniyah Governorate

IOM Iraq – 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 designations employed and the presentation of material CIP Community Implementation Plan throughout the report do not imply the expression of any CoC Chamber of Commerce opinion whatsoever on the part of IOM concerning the CoI Chamber of Industries legal status of any country, territory, city or area, or of its authorities, or concerning its frontiers or boundaries. CRC Community Resource Centre 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 intergovernmental organization, IOM acts with its partners FT Farming Training 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 development through migration; and uphold the human IOM International Organization for Migration dignity and well-being of migrants. JP Job Placement LMA Labour Market Assessment Contact: For more information on the Return and Recovery Unit (RRU) programme and current activities taking place in NFI Non-Food Items Iraq, please contact: [email protected] MoLSA Ministry of Labour and Social Affairs OJT On-the-Job Training Main Office in Baghdad UNAMI Compound DIWAN 2 SME Small and Medium Enterprise 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. Kalar Key Findings 1.2.1 Challenges and Opportunities Facing Jobseekers 1.2.2 Challenges and Opportunities Facing Job-seekers 1.2.3 Challenges and Opportunities Facing Youth 1.2.4 Challenges and Opportunities Facing Consumers 1.3. Overall Recommendations 2. Location and Study Overview 5 2.1. Introduction 2.2. LMA Overview 2.3. Kalar District Overview 5 2.3.1. Location and Demographics 2.3.2. Security and Displacement 2.3.3. Local Concerns 2.4. LMA Methodology Overview 2.3.1. Key Informant Interviews 6 2.3.2. Youth Focus Group Discussions 2.3.3. Job-seeker Surveys 2.3.4. Employer Surveys 2.3.5. Consumer Surveys 3. Findings 6 3.1. Key Informant Interviews 3.2. Youth Needs and Priorities 7 3.2.1. Awbarik 3.2.2. Sangawiakan 3.2.3. Female youth from both Awbarik and Sangawiakan 3.3. Job-seeker Needs and Priorities 3.4. Employer Needs and Priorities 3.5. Consumer Needs and Priorities 8

4.Community Intervention Recommendations 9 5. Conclusions 9

3 Labour Market Opportunities and Challenges

1. Executive Summary

1.1. Introduction 1.3.2. Challenges and Opportunities facing Jobseekers

• About 97% of jobseekers surveyed were unaware of any job With sub-offices across Iraq, jointly managed Community Resource centre or similar service in their community; and Centres (CRCs), and a presence within the Ministry of Labour • Labour migration was mentioned by 94% of respondents – to and Social Affairs’ sub-offices, IOM’s field presence allows for a nearby cities including Kalar city and Sulaymaniyah city. community-driven approach to recovery and development. Under its livelihoods programming, IOM works through a system of community engagement that has been refined through an iterative 1.3.3. Challenges and Opportunities facing Employers learning process and relies on stakeholder consultation throughout the design of sustainable livelihood activities. In order to inform the • Business status was mixed, with metalworkers most likely to design of market-led development interventions, a series of Labour categorize their business as not profitable and operating at a Market Assessments (LMAs) were conducted. In Sulaymaniyah loss; Governorate, Kalar district was selected for in-depth study. • Seventeen of surveyed employers were also open to the idea of training apprentices or mentioned experience doing this; and 1.2. Study components • Car mechanics, food industry workers, construction and tailoring businesses all mentioned difficulty in finding skilled This LMA consisted of 107 individual interviews and three youth employees. Focus Group Discussions (FGDs) with roughly 30 participants, conducted over a two-month period between December 2018 Recommendations: and January 2019. Avoid granting to too many metalworking businesses; and The LMAs are made up of both quantative and qualitative exercises Look to provide on the job training, including with some consisting of Key Informant Interviews, FGDs which targeted of the surveyed employers who expressed interest or young people and household surveys which targeted jobseekers, experience with this. employers and consumers. The LMA focused on the communities of Awbarik and Sangawiakan 1.3.4. Challenges and Opportunities facing Consumers in the town of Rizgari – which along with Kalar town are referred to as the “twin towns” of Rizgari-Kalar. A summary of key findings • Medical services were the most likely to be reported as hard is included below with some analysis of the findings followed by to find (by 45% of consumers); recommendations for future interventions. • Consumers were not found to not spend significantly more on rent, gas, or electricity in Kalar than in other surveyed market areas in Iraq; and 1.3. Kalar Key Findings • Consumers spend significantly less on food and transportation in Kalar than in other surveyed market areas in Iraq. 1.3.1. Challenges and Opportunities facing Youth • Youth reported that they felt more decent job opportunities 1.4. Overall Recommendations would influence their decision – or not –to join or not join the military; • Youth attending the FGDs agreed that there were some issues Sectors to Car mechanics, technology, English language, service of insecurity in their communities; they specifically mentioned target: sector jobs theft and kidnapping of children; Profile • The most needed trainings were identified as trainings on Youth, women, graduates, vulnerable groups computer skills, English language, and salon services for both to target: men and women; and • Frequently mentioned desirable jobs included service-sector • Avoid awarding grants to grocery stores or jobs. directly to the food sector; • Brainstorm on how to support temporary Notes: Recommendations: labour migration; and Focus Vocational Training (VT) on service sector jobs. • Contact factories to explore job placement possibilities.

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2. Location and Study Overview

2.1. Introduction Kalar. Rizgari was previously known as Smud, but its name changed following the Kurdish Uprising of 1991.1 Its twin town Kalar is Recognizing that the private sector is an engine for growth, IOM located just 10 km east, on the Sirwan River. works to create inclusive markets at the individual, community The district’s population is largely Kurdish. A 2018 Kurdistan and institutional level. At the individual level, IOM has prioritized Region Statistics Office (KRSO) document estimated the district’s support to micro enterprises, including providing business 2 population to be slightly over 200,000 but this figure may not development services (for example business advisory services) have taken into account informal housing and internally displaced and BSPs (including in-kind and cash support), all of which aim persons (IDPs). Other figures provide an estimation of the to increase income generation at the household level. For those population of the twin towns at approximately 250,000 (210,000 individuals who need capacity development support or who have in Kalar and 40,000 in Rizgari).3 specific backgrounds such as agriculture, IOM provides specialized skills development and training through Vocational Training (VT), 2.3.2 Security and Displacement Farming Training (FT) or On-the-Job Training (OJT), accompanied by employability assistance inclusive of in-kind items tailored to Kalar is one of several areas whose population grew during and enhance individual employability. For beneficiaries who already after Saddam Hussein’s “Anfal” campaign in 1986–1988. The possess relevant education or training and need to gain hands-on campaign aimed to systematically displace, disenfranchise, and work experience, IOM job placement and job matching initiatives according to several accounts, exterminate the Kurdish population link participants with businesses in growth sectors, and pays their in the north of Iraq.4/5 Smud, now Rizgari, was established as a salaries partially or fully for 3 to 6 months. relocation camp for Kurds who were forcefully displaced under the campaign. While the area has experienced relative stability since At the community level, IOM provides support to slightly larger then, the district’s IDP population grew rapidly during the Islamic businesses – small and medium enterprises (SMEs) – to support State of Iraq and the Levant (ISIL) incursions into and occupation long-term job creation and the expansion of local production of parts of western and northern Iraq. Thousands of IDPs arrived capacities. into Kalar in mid-June 2014, and more followed in the coming weeks.6 IOM also targets the infrastructure needed to support markets, linking support to livelihoods with support for the enabling 2.3.2. Local Concerns environment. For example, in agricultural communities IOM may support irrigation projects. At the institutional level, IOM also The large number of Kurds settling here in recent decades put a provides capacity building to national and local authorities, including strain on local businesses, as they opened their own businesses market assessments that seek to promote institutional change that or competed for local jobs. In addition, a number of local needs would support local livelihoods. were pointed out through IOM assessments conducted in late 2018. In the studied communities of Awbarik and Sangawiakan, there are numerous unpaved roads, which creates movement 2.2. Labour Market Assessment Overview difficulties especially during rain and in the wintertime. Water is This and other IOM LMAs are intended to provide actionable available and clean due to the Water Directorate’s purification recommendations for the individual livelihood assistance that IOM methods. However, the supply is limited to approximately 10 litres provides in multiple districts throughout Iraq. This LMA focuses per person per day. Government-supplied electricity is provided on Kalar, a district in Sulaymaniyah in the Kurdistan Region of Iraq by the Chamchamal sand Darbandikhan stations, in neighboring (KRI), south of Sulaymaniyah and on Iraq’s borders with Iran. districts, but the supply is not constant. However, Rizgari-Kalar has a generator-powered secondary electrical system, used when government electricity is not available. There are no health centres 2.3. Ain Al-Tamur District Overview or hospitals in the studied areas but Rizgari has a health centre and the Kalar hospital is available for serious health cases. Food 2.3.1. Location and Demographics and non-food items (NFIs) are not an issue for host community Kalar is a district in Sulaymaniyah Governorate in KRI. It lies about members, with numerous small markets as well as larger, central 200 km northeast of Baghdad, and about 265 km southeast of ones in both twin towns. Some basic food assistance is provided to Erbil. Its main population center is the “twin towns” of Rizgari- vulnerable persons, including sugar, rice and vegetable oil. However, IDPs have expressed difficulty in affording food, fuel and other NFIs.

1 BBC News Staff, “In Pictures: Remembering the Kurdish uprising of 1991,” BBC News, April 7 2016, Accessed 6 May 2019 (https://www.bbc.com/news/in-pictures-35967389). 2 Anonymous, “The map of estimated population of Sulayimaniy governorate at district level – 2018,” Kurdistan Region Statistics Office, 2018, Accessed 9 May 2019 (http://www.krso.net/ files/articles/040319120819.jpg). 3 Anonymous, “Kalar | Unbelievable Kurdistan,” Official Tourism Site of Kurdistan, Accessed 9 May 2019 (http://bot.gov.krd/garmian-administration-kalar/visit/kalar).

4 Hilterman, Joost, “Iraq’s Assault Against the Kurds,” Tufts University World Peace Foundation, June 13, 2013, Accessed 29 April 2019 (https://sites.tufts.edu/reinventingpeace/2013/06/13/ iraqs-assault-against-the-kurds/). 5 BBC News Staff, “Anfal: Campaign Against the Kurds,” BBC News, June 24, 2007, Accessed 29 April 2019 (http://news.bbc.co.uk/2/hi/middle_east/4877364.stm).

6 REACH Staff, “IDP Factsheet: Kalar Town,” REACH, June 18-19 2014, Accessed 7 May 2019 (https://reliefweb.int/sites/reliefweb.int/files/resources/REACH_IDP%20Factsheet%20 Kalar_23.06.2014_1.pdf). 5 Labour Market Opportunities and Challenges

Consumer Spending Snapshot The map below shows the locations of the surveyed employers. • Key Weekly Expenses: The typical consumer in Kalar reported spending an average of USD per week on food. • Key Monthly Expenses: 39% of survey respondents reported having a monthly transportation expense, averaging 36 USD per month; 100% of survey respondents reported having a monthly combustibles expense, averaging 58 USD per month; 67% of respondents also reported a monthly water expense, averaging 9.8 USD per month; 96% of respondents reported monthly expenses on temptation goods such as tobacco and alcohol, averaging 57 USD per month and 39% of respondents reported monthly rent expenses averaging 80 USD per month.

A more thorough breakdown of consumer expenditure based on the collected data is presented in the Findings section below. Map 1. Location of employers surveyed in Kalar

2.4. LMA Methodology Overview 2.4.5. Consumer Surveys The LMA process took two months to complete and focused The Consumer survey was designed to triangulate data related primarily on the Awbarik and Sangawiakan communities of Kalar. to demand, income, and vulnerability. In Kalar, 33 respondents After a two-day training, surveyors interviewed key informants, participated in the survey. The respondents were identified by jobseekers, average consumers, youth and local businesses. approaching general members of the public who were present Below is an explanation of the surveys conducted: in commercial or industrial areas of the district. There were no restrictions on the demographic profiles of participants, but IOM 2.4.1. Key Informant Interviews sought diversity to the extent possible. Eight key informant interviews (KIIs) were conducted throughout The table below outlines the types and number of surveys Kalar. These included representatives from the Kurdistan conducted for Kalar. Farmer’s Syndicate and Union of Contractors, the Directorate of Statistics, bank employees, officials from the mayor’s office, and a representative from the Ministry of Finance. Tools No. Conducted Key Informant Interviews 8 2.4.2. Youth Focus Group Discussions ns 3وYouth Focus Group Discussio Youth FGDs were designed to identify bottlenecks to youth Jobseeker Surveys 34 employment and training preferences. They were conducted by Private Sector Employer Surveys 32 requesting participation from members of each of the studied Consumer Surveys 33 communities. Three focus group discussions were held in Kalar, one each in Awbarik and Sangawiakan communities, and one with Table 1. Surveys conducted in Kalar for labour market analysis only females from both communities. The FGDs had participants aged between 15 and25 years, and sought to include a diverse group of youth. 3. Findings

2.4.3. Job-seeker Surveys 3.1. Key Informant Interviews The Jobseeker survey was designed to identify preferences of unemployed and underemployed workers. In Kalar, 34 jobseekers Key informants differed in their opinions about the largest were identified and surveyed. The survey purpose was outlined for employers in the area prior to the political events of the last 5 each jobseeker survey, and informed consent was obtained from years but most mentioned trading or farming. Other industries those surveyed. where Kalar residents commonly find employment included construction, manufacturing and services. Since the end of violence in neighboring governorates and its resulting financial recession, 2.4.4. Employer Surveys informants estimated that 51% of businesses, on average, had Thirty-two Employer surveys were also conducted in Rizgari to restarted. Respondents mentioned agriculture, construction provide a sample as representative as possible of the local market. and commercial compounds as promising areas for investment Employers were initially provided an advance copy of the handout and development and felt that public investment was already materials and later contacted for follow-up interviews. occurring in these sectors. In addition, respondents could recall

6 International Organization for Migration several sources of private investment and development aid from 3.3. Job-seeker Needs and Priorities international organizations. International organizations credited with being active in the area include FAO, GIZ, Oxfam, UNHCR, Two specific factories that hire a large proportion of local workers IOM, REACH, Relief International, ACTED and CDO. were mentioned by Jobseekers, including: • A local plastic pipe production company that has a good 3.2. Youth Needs and Priorities reputation in terms of employees’ rights, demand for its product, and quality (to the extent that it exports to other Young people stated that there were some issues of insecurity in governorates). However, FGD participants mentioned that their communities; they mentioned theft and kidnapping of children. this factory tended to hire Arabs due to their willingness to Participants felt that youth had a role to play in decreasing these work for lower wages. incidents. Respondents also felt that availability of more decent job opportunities would influence their decision to join – or not – the • Chyaw, an ice cream and dairy factory has good demand for military. Some youth also mentioned dropping out of the military its products, but a poor reputation in terms of employee during the crisis due to fear of persecution from ISIL. rights and corruption. Opinions differed on whether these jobs were desirable or not, 3.2.1. Awbarik but most jobseekers agreed that these were not long-term jobs. The skills most in demand mentioned by youth in Awbarik were Jobseekers estimated that unemployment is at around 54% in auto mechanics, technology, and English language proficiency. Kalar. Apart from word of mouth, 41% of jobseekers mentioned Service jobs were most frequently mentioned as desirable, such as internet and media as a source of information about jobs. A center working in a supermarket or in a snack-food restaurant, although that provides tailoring courses for women was mentioned by one all participants mentioned a preference for self-employment. respondent, while the remaining 97% of jobseekers surveyed were unaware of any job centre or similar service in their community. 3.2.2. Sangawiakan Labour migration was also mentioned by 94% of respondents, to The most desired skills trainings mentioned by youth in Sangawiakan nearby cities including Kalar city and Sulaymaniyah city. included electricity and mobile repair skills, followed by hairdressing/ barbering. It was mentioned that female participation in training courses would be unlikely. Again, desirable jobs mentioned were 3.4. Employer Needs and Priorities all service-sector jobs such as accounting, driving, and working in Main challenges facing employers were related to cash liquidity, a grocery store, yet all preferred self-employment over salaried including requirements from suppliers to pay in cash and requests employment. from clients to take on debt. Others mentioned timing and regulatory issues related to quality issues in performing services, 3.2.3. Female youth from both Awbarik and Sangawiakan for instance car inspection businesses reported struggling to make drivers adhere to traffic laws and service providers expected to In an all-female focus group discussion, again all participants provide services in short amounts of time. mentioned wanting to work for themselves, and some female- appropriate businesses were mentioned (such as selling hygiene Self-described business status after the crisis was mixed, with products, make-up, undergarments, etc.). many businesses describing themselves as profitable. For instance, Women felt that youth would most likely approach business four metalworkers indicated that demand on their business has partners, relatives and parents to seek financial support to start decreased due to the high demand on aluminum. Aluminum a business. business owners, in turn, indicated that their demand has increased. Business status currently was mixed, with again metalworkers most Below, a list of requested trainings from youth indicates that the likely to categorize their business as not profitable and running at a perceived most needed trainings would be trainings on computer loss, including a welder and a wholesale metalworking business. A skills, English language, and salon services for men and women. grocery store owner also categorized his business as losing money. Seventeen of the surveyed employers were open to the idea of English language course 20% Electrical appliances 10% training apprentices or mentioned experience doing this. Car mechanics, food industry, construction, and tailoring businesses all Knitting 10% mentioned difficulty in finding skilled employees.

Hairdressing 20% Tailoring 10%

Mobile repair 10% Computers 20%

Figure 1. Requested Training Subjects for Male Youth by Mention

7 Labour Market Opportunities and Challenges

Very profitable 3.5. Consumer Needs and Priorities Successful, it is Not profitable, The average monthly salary from work for consumers surveyed expanding I’m losing money. was USD 490. Rare for the area and the country, 20% of 6% (Business contraction) respondents mentioned saving a percentage of their income every 12% month, although this percentage varied between respondents. Profitable Successful, but not Controlling for income and other factors, regression models enough to grow showed that consumers were not found to spend significantly further different amounts of income on rent, food, electricity or gas in Stagnant 33% Ain Al-Tamur when compared with n other areas of Iraq surveyed Barely enough to via the LMAs, suggesting that these sectors are not experiencing sustain my own needs supply or demand issues to the extent that this would affect local 49% market prices. Figure 2. Requested Training Subjects for Male Youth by Mention Spending patterns are shown in the table below:7

% of participants in KIalar Average local expense Average national expense Period Expense reporting yes to expense (USD) reported in kalar (USD)8 type Week Food %100 45 97.05 Rent %39 80 151.02 Combustibles %100 58 58.38 Transport services %39 36 49.43 Month Temptation goods %96 57 64.32 Recreation %6 87 75.10 Water %67 9.8 20.51 Phone, cable and internet %96 23 37.90 Education %69 212 372.36 Medical expenses %87 915 496.91 Repairs %30 318 485.92 Year Household appliances %48 123 215.83 Purchase of vehicle such as %21 57 1604.91 car, bike, motorbike Family events %76 62 808.82

Table 2. Consumer spending averages in Kalar

7 Please note that this data is self-reported and therefore subject to some isolated calculation errors and information bias.

8 The average national expense (USD)consists of results gathered via 22 LMAs conducted between December 2018 and January 2019.

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4. Community Intervention Recommendations

Based on the surveys conducted and data collected, IOM developed a draft list of potential community interventions, or Community Implementation Plans (CIPs) in Kalar to help address various identified livelihoods and community engagement issues. Infrastructure recommendations included projects to rehabilitate and expand local schools, establishing a recreational hall in Rizgari, expanding electricity network infrastructure in the Sangawiyakan community, and establishing constant connection to water pumps serving Awbarik.

Livelihoods recommendations were broad and diverse and included Business Support Packages (BSPs) and Employment Support Packages (ESPs) for a number of local businesses, establishing On-the-Job Trainings (OJTs) for several businesses that indicated a need for apprentices and extra labour, Job Placement (JP) at local factories and restaurants, vocational training on a number of skills and disciplines, and finally training on livestock and agriculture.

A number of community engagement recommendations were also made including business and marketing support to skilled women who make handicrafts, support to local CBOs on management and fundraising, establishment of tournaments for various sports, and an effort to improve and beautify the local library, a community park, and a school in Sangawiyakan.

5. Conclusions

Kalar is a district with some social tensions linked to Arab - Kurdish hostility, but with a cautiously optimistic economic outlook. Many young people find the military an attractive option, which has been an issue in the past decade with the encroachment of ISIL in various areas of Iraq. Today, a couple of local factories offer employment to the local population, but there were conflicting reports on how good their work standards and pay are. Restrictive gender norms were acknowledged, yet some female-appropriate vocations were mentioned, including female-only services.

Although there is a strong preference for self-emplyment in district, yet with the absence of a strong financial system, many youth find themselves dependent on their families. As a result, labour migration is common. Residents spent significantly less than other locations in Iraq on food and transportation services, probably due to being less affected by shortages or challenges to agriculturel caused by ISIL in other areas . Metalworkers and grocery stores tended to report low demand; therefore IOM should be cautious of supporting these types of businesses. Instead, mechanical and electrical courses could be prioritized, with OJT and JP in service sector jobs (excluding grocery stores). English training courses could be provided if possible as well, and IOM should assess the possibility of supporting labour migration, or, potentially, migration to pursue education-related pursuits, as this is happening anyway.

Trainings should be accompanied by BSP, as most preferred self-employment to wage labour, but where not possible, local factories may also be able to absorb some jobseekers.

9 IOM-IRAQ MISSION LABOUR MARKET OPPORTUNITIES AND CHALLENGES