Iraq youth unemployment near 32% as graduate job seekers swell labor market

BAGHDAD, Iraq — Iraq's youth unemployment rate has reached between 28% and 32%, among the highest in the region, despite the country's large oil revenues and broad fiscal resources. The Planning Ministry said overall unemployment fell to 13% in 2025, though separate estimates put the rate at 15.5% in the first half of 2026, with annual university graduates entering the labor market estimated at 160,000 to 250,000 against a population of about 46 million. International economic analyst Nivar al-Saadi said the problem cannot be tied to a single cause, pointing to overlapping administrative inefficiency and political calculations in state management. He said many institutions are run on a distribution logic rather than merit, delaying projects and squandering investment opportunities. Government figures indicate that 90% to 95% of public revenues come from oil and roughly 70% of public spending goes to salaries. The World Bank and the IMF have linked persistently high unemployment to limited private-sector growth capacity and the economy's reliance on state spending and petroleum.