Iraq's unemployment rate reaches 16.5% as hidden joblessness strains university graduates

BAGHDAD, Iraq — Iraq's unemployment rate stands at 16.5%, rising to 35.8% among young people, with hidden public-sector joblessness and underemployment pushing a composite indicator to 31% nationwide and 53.3% for youth, according to labor data cited in policy discussions. The country's expanding university capacity, set against a limited private sector, has left graduates heavily reliant on government hiring, a pattern that risks converting open unemployment into hidden unemployment without lifting economic productivity. The National Development Plan 2024–2028 aims to address the imbalance by supporting the private sector, funding small and medium-sized enterprises and expanding employment programs aimed at young people. The International Labour Organization said in February 2026 that high youth unemployment persists in Iraq and announced the expansion of its Job Search Clubs program in the country. Analysts cited in the discussions argue that policy must shift from distributing jobs to creating productive employment, or the gap between university credentials and labor-market demand will widen.