Iraqi Kurdistan unemployment hits 25% amid ongoing salary crisis: data
By: TII team
December 24, 2024
People waiting for their salaries in Sulaimani, Iraqi Kurdistan, 2024. Photo: NRT TV
ERBIL,— Unemployment in Iraq’s Kurdistan region has climbed to nearly 25%, with young people bearing the brunt of the crisis, according to recent data, NRT TV reported.
As economic struggles persist, the jobless rate highlights growing challenges for the region’s workforce, even as other nations capitalize on their youthful populations to drive economic growth.
Despite a large, capable workforce, the unemployment crisis has deepened under the governance of regional authorities. Official figures indicate that 64% of the Kurdistan region’s population falls within the working-age bracket of 15 to 63 years old.
Yet, a staggering portion remains out of work. International standards generally consider unemployment rates between 4% and 6% acceptable, but Kurdistan’s current figures have far exceeded that threshold.
According to NRT and the latest statistics from international labor organizations, unemployment in the Kurdistan Region has surged to over 24%, leaving 37% of the labor force jobless. In comparison, countries with thriving economies report significantly lower unemployment rates: the U.S. at 3.6%, Germany at 3%, and Japan at 2.6%. Even Brazil, with a higher unemployment rate of 8%, demonstrates far greater stability than Kurdistan
Neighboring regions, including Qatar and Cambodia, boast near-zero unemployment, at 0.1% and 0.2% respectively, according to data compiled at the close of 2023. Meanwhile, the Kurdistan Region faces one of the highest unemployment rates globally.
Observers point to governance issues as a primary cause. Critics accuse the ruling Kurdistan Democratic Party (KDP) and Patriotic Union of Kurdistan (PUK) of neglecting economic priorities in favor of political disputes.
“The workforce here is talented and willing, but opportunities are scarce, and the authorities seem indifferent,” a local economist said.
As the global economy increasingly depends on skilled youth for innovation and growth, the situation in Kurdistan starkly contrasts with international trends. Without significant policy shifts, experts warn that unemployment will remain a barrier to the region’s development.
Sources indicate that tackling the issue will require addressing systemic challenges, including political reform and improved investment in job creation programs. For now, however, the region’s unemployment crisis continues to overshadow its potential.
For years, the Barzani clan’s KDP and the Talabani family’s PUK have dominated the Iraqi Kurdish region. Both families frequently face allegations of corruption.
Copyright © 2024 The Insight International. All rights reserved
ERBIL,— Unemployment in Iraq’s Kurdistan region has climbed to nearly 25%, with young people bearing the brunt of the crisis, according to recent data, NRT TV reported.
As economic struggles persist, the jobless rate highlights growing challenges for the region’s workforce, even as other nations capitalize on their youthful populations to drive economic growth.
Despite a large, capable workforce, the unemployment crisis has deepened under the governance of regional authorities. Official figures indicate that 64% of the Kurdistan region’s population falls within the working-age bracket of 15 to 63 years old.
Yet, a staggering portion remains out of work. International standards generally consider unemployment rates between 4% and 6% acceptable, but Kurdistan’s current figures have far exceeded that threshold.
According to NRT and the latest statistics from international labor organizations, unemployment in the Kurdistan Region has surged to over 24%, leaving 37% of the labor force jobless. In comparison, countries with thriving economies report significantly lower unemployment rates: the U.S. at 3.6%, Germany at 3%, and Japan at 2.6%. Even Brazil, with a higher unemployment rate of 8%, demonstrates far greater stability than Kurdistan
Neighboring regions, including Qatar and Cambodia, boast near-zero unemployment, at 0.1% and 0.2% respectively, according to data compiled at the close of 2023. Meanwhile, the Kurdistan Region faces one of the highest unemployment rates globally.
Observers point to governance issues as a primary cause. Critics accuse the ruling Kurdistan Democratic Party (KDP) and Patriotic Union of Kurdistan (PUK) of neglecting economic priorities in favor of political disputes.
“The workforce here is talented and willing, but opportunities are scarce, and the authorities seem indifferent,” a local economist said.
As the global economy increasingly depends on skilled youth for innovation and growth, the situation in Kurdistan starkly contrasts with international trends. Without significant policy shifts, experts warn that unemployment will remain a barrier to the region’s development.
Sources indicate that tackling the issue will require addressing systemic challenges, including political reform and improved investment in job creation programs. For now, however, the region’s unemployment crisis continues to overshadow its potential.
For years, the Barzani clan’s KDP and the Talabani family’s PUK have dominated the Iraqi Kurdish region. Both families frequently face allegations of corruption.
Copyright © 2024 The Insight International. All rights reserved
Baghdad won’t fully fund Kurdistan’s salaries, says Iraqi PM
By: TII team
Date: December 5, 2024
By: TII team
Date: December 5, 2024
Iraq’s Prime Minister Mohammed Shia’ al-Sudani addressing the parliament on December 4, 2024. Photo: Iraqi PM’s Press Office
BAGHDAD,—Iraq’s Prime Minister Mohammed Shia’ al-Sudani has informed lawmakers that the Kurdistan Regional Government (KRG) will not receive the full amount needed to pay its civil servants, citing insufficient funds in the Kurdish region’s share of the federal budget.
The announcement has sparked concerns over ongoing financial disputes between Baghdad and Erbil.
According to Kurdish lawmaker Sabah Habib, who spoke to Rudaw TV, Sudani confirmed that only 760 billion dinars (approximately $580 million) will be sent to Erbil for the remainder of the year. The allocation falls short of the over 900 billion dinars (around $687 million) that the KRG says it needs each month to meet its payroll obligations.
Baghdad has already earmarked 761 billion dinars for the KRG’s October salaries, but the Kurdish government has yet to accept the payment. Officials in Erbil remain hopeful that ongoing negotiations will secure the full amount.
During a parliamentary session on Wednesday, held to assess his administration’s performance, Sudani addressed questions about delays in salary payments for KRG employees. Kurdish MP Soran Omar shared on social media that the prime minister reiterated Baghdad’s adherence to a Federal Court ruling from February. The ruling mandated that the federal government assume responsibility for covering KRG salary payments, while requiring Erbil to transfer all oil and non-oil revenues to Baghdad.
The session, closed to the media, revealed a stark reality: the federal budget allocation for the KRG’s civil servants has already been exhausted. A video circulating online shows Sudani explaining that any increase in funds would necessitate reallocating money from other parts of the federal budget.
Iraq’s federal budget law, passed in June 2023, stipulates that the KRG must transfer its non-oil revenues to the federal government in exchange for receiving 12.6% of the national budget. However, Sudani stated that Erbil has not fully complied with this requirement, despite contributing half of its local income to Baghdad.
The prime minister also highlighted the potential role of oil exports in resolving the financial standoff. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023. This suspension followed an arbitration ruling that sided with Baghdad, holding Ankara responsible for permitting Erbil to independently export oil since 2014—a violation of a 1973 agreement. Before the halt, the Kurdistan Region had been exporting approximately 400,000 barrels of oil daily.
Sudani has proposed a bill to the Iraqi parliament aimed at restarting KRG’s oil exports by increasing the cost for production and transportation by nearly $10 per barrel. The bill has passed its first reading. He emphasized that Baghdad’s stance is not politically motivated but hinges on the KRG meeting its financial obligations.
“We might find a solution,” Sudani said, suggesting that resuming oil exports could provide the much-needed revenue to address salary delays and other budgetary challenges.
Copyright © 2024 The Insight International. All rights reserved
BAGHDAD,—Iraq’s Prime Minister Mohammed Shia’ al-Sudani has informed lawmakers that the Kurdistan Regional Government (KRG) will not receive the full amount needed to pay its civil servants, citing insufficient funds in the Kurdish region’s share of the federal budget.
The announcement has sparked concerns over ongoing financial disputes between Baghdad and Erbil.
According to Kurdish lawmaker Sabah Habib, who spoke to Rudaw TV, Sudani confirmed that only 760 billion dinars (approximately $580 million) will be sent to Erbil for the remainder of the year. The allocation falls short of the over 900 billion dinars (around $687 million) that the KRG says it needs each month to meet its payroll obligations.
Baghdad has already earmarked 761 billion dinars for the KRG’s October salaries, but the Kurdish government has yet to accept the payment. Officials in Erbil remain hopeful that ongoing negotiations will secure the full amount.
During a parliamentary session on Wednesday, held to assess his administration’s performance, Sudani addressed questions about delays in salary payments for KRG employees. Kurdish MP Soran Omar shared on social media that the prime minister reiterated Baghdad’s adherence to a Federal Court ruling from February. The ruling mandated that the federal government assume responsibility for covering KRG salary payments, while requiring Erbil to transfer all oil and non-oil revenues to Baghdad.
The session, closed to the media, revealed a stark reality: the federal budget allocation for the KRG’s civil servants has already been exhausted. A video circulating online shows Sudani explaining that any increase in funds would necessitate reallocating money from other parts of the federal budget.
Iraq’s federal budget law, passed in June 2023, stipulates that the KRG must transfer its non-oil revenues to the federal government in exchange for receiving 12.6% of the national budget. However, Sudani stated that Erbil has not fully complied with this requirement, despite contributing half of its local income to Baghdad.
The prime minister also highlighted the potential role of oil exports in resolving the financial standoff. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023. This suspension followed an arbitration ruling that sided with Baghdad, holding Ankara responsible for permitting Erbil to independently export oil since 2014—a violation of a 1973 agreement. Before the halt, the Kurdistan Region had been exporting approximately 400,000 barrels of oil daily.
Sudani has proposed a bill to the Iraqi parliament aimed at restarting KRG’s oil exports by increasing the cost for production and transportation by nearly $10 per barrel. The bill has passed its first reading. He emphasized that Baghdad’s stance is not politically motivated but hinges on the KRG meeting its financial obligations.
“We might find a solution,” Sudani said, suggesting that resuming oil exports could provide the much-needed revenue to address salary delays and other budgetary challenges.
Copyright © 2024 The Insight International. All rights reserved
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