Foreign workers flood Iraq: A threat to local jobs

Shafaq News/ Foreign labor is rapidly expanding its foothold in Iraq, infiltrating various sectors from restaurants and cafes to cleaning services and state institutions. With specialized companies facilitating this influx through operational contracts, the absence of effective regulations has allowed foreign workers to flood the market, deepening the unemployment crisis and leaving local workers struggling to secure opportunities.
Unemployment Crisis
Iraq ranked seventh among Arab countries and 33rd globally on the 2023 Hanke's Annual Misery Index, published on March 14, 2024, with a misery score of approximately 50.8. The index identifies unemployment as a significant factor contributing to this level.
Unemployment in Iraq has soared, with the Parliamentary Committee on Labor, Social Affairs and Displaced Persons estimating that 15 million people are without work. The Ministry of Planning confirmed this trend, revealing that by early 2024, the unemployment rate had reached 16.5%.
A World Bank’s report painted a grim outlook, noting that unemployment in Iraq is at its highest in three decades. Of particular concern, youth unemployment stands at a staggering 36%, signaling the profound impact of the country’s economic decline on the younger population. Each year, roughly 160,000 to 170,000 young people graduate from Iraqi universities and institutes, but the majority struggle to secure government positions or find employment opportunities.
While foreign labor is a common sight in the country, Najm Al-Aqabi, spokesperson for the Ministry of Labor and Social Affairs, disclosed to our agency that "the number of licensed foreign workers in Iraq currently exceeds 42,000." Yet, experts caution that many unlicensed foreign workers remain in the country.
The situation was also highlighted by Fadel Al-Gharawi, head of the Strategic Human Rights Center in Iraq, who pointed out, "Indicators suggest there are one million undocumented foreign workers in Iraq." According to his figures, the number of registered workers with the Ministry of Labor stood at 43,000 as of 2024.
A vivid Illustration
Recently, foreign workers from countries like India, Bangladesh, and Pakistan have increasingly dominated the construction sector. As a result, many Iraqis are turning to labor companies to hire them for home construction and renovation projects.
Ali Mohammed, a 47-year-old Iraqi who hired foreign workers to build his house, clarified why he opted for foreign labor. "There are clear reasons behind this choice, including the lower cost of foreign workers compared to locals, as well as their high efficiency and productivity,” he told Shafaq News Agency.
Mohammed elaborated that "foreign workers work 10 hours a day without requesting breaks or meals, and foreign master builders require fewer workers to complete tasks, reducing overall construction costs." As an example, he noted that "an Iraqi master builder would need four workers, while a foreign one requires just one."
Foreign Workers or Local Iraqis?
The competition between foreign and local labor in Iraq is not new. Economic expert Hammam Al-Shamaa explained to Shafaq News that "its roots go back to the 1980s when Egyptian workers dominated the construction sector due to most Iraqi workers being engaged in mandatory military service at the time." Although this phenomenon waned during the 1990s, Al-Shamaa noted that "it has resurged significantly in recent years."
Iraqi workers, according to the expert, face several challenges that have contributed to this shift. These include a preference for office jobs over manual labor and certain attitudes and behaviors that make them reluctant to engage in physically demanding sectors. "This has led many employers to prefer foreign workers, who are known for their commitment and lack of tribal affiliations," he added.
This preference, he explained, helps employers avoid the risks associated with tribal disputes in case of conflicts.
Further compounding the issue, Al-Shamaa pointed out that "the growing reliance on foreign labor is also a result of the absence of laws that protect local workers and the lack of obligations on employers to provide a fair and just work environment for Iraqi laborers."
Economic expert Manar Al-Obaidi shared similar concerns, stating that "foreign labor in Iraq lacks legal and regulatory frameworks, which allows it to compete with local labor effectively." He also highlighted to our agency that "the absence of labor laws, such as those regulating work hours and mandating rest periods, makes foreign labor a preferred choice for employers due to its lower cost."
Insufficient Measures
Experts emphasize the need to create a fair working environment for Iraqi workers, urging stronger oversight of companies that rely on foreign labor to ensure a balance between local and foreign employees.
In response, the Iraqi Ministry of Interior recently revealed the arrest of nearly 700 foreign nationals who violated the Foreigner Residence Law. No. (76) Of 2017 after their grace period expired, calling on companies, professionals, craftsmen, tradespeople, restaurant owners, and anyone housing foreigners in violation of the law to deport them by January 15, 2025.
To facilitate the process, the ministry has reinstated its electronic service, initially launched in 2024, designed to help foreign workers in violation of the law, including those in the Kurdistan Region, adjust their legal status.
The Iraqi government, meanwhile, introduced its National Development Plan for 2024–2028, outlining four main programs and 25 subprograms. The Ministry of Planning noted that this step will contribute to reducing the unemployment rate from 16% to around 10% and increasing Iraq’s economic growth by 4.25% annually.
On the labor front, Samira Nasser Al-Khafaji, an Executive Bureau Member of the General Federation of Labor Unions in Iraq, acknowledged that "the Federation has not fulfilled its role adequately in addressing challenges." She pointed to the lack of effective legislation and restrictions on union freedoms as factors that have exacerbated the local labor crisis.
Al-Khafaji also criticized the failure to implement investment conditions requiring foreign companies to employ 50% local labor in their projects and highlighted the lack of health and safety standards. "The federation organized campaigns in Baghdad and the provinces to regulate foreign labor and provide social security for local workers, but these efforts have been insufficient to address the crisis,” she confirmed to our agency.