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I Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq January 2019 LABOUR MARKET ASSESSMENT IN SALAH AD DIN AND ANBAR GOVERNORATES, IRAQ JANUARY - 2019 Labour Market Assessment in Salah ad Din and Anbar Governorates Iraq – February 2019

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Page 1: Labour Market Assessment L Labour Market Assessment in M A ... · II Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019 Acknowledgements Forcier

I Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Labour Market Assessment in

Salah ad Din and Anbar

Governorates, Iraq

January 2019

LABOUR MARKET ASSESSMENT

IN SALAH AD DIN AND ANBAR

GOVERNORATES, IRAQ

JANUARY - 2019

Labour Market Assessment

in Salah ad Din and Anbar

Governorates

Iraq – February 2019

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I Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Disclaimer: This report is not a legally binding document. It is a collaborative informational and assessment document and does not necessarily reflect the views of any of the contributing partners in all of its contents. Any errors are the sole responsibility of the authors. Copyright © 2019 Forcier Consulting. All rights reserved.

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II Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Acknowledgements Forcier Consulting thanks our colleagues at Oxfam for their cooperation and support with this research project in Salah ad Din and Anbar governorates, Iraq. In particular, we would like to recognize: Oxfam

Tauqeer Ahmad EFSVL & Cash Coordinator Saif Yassin EFSVL Officer, Anbar Fouad Ahmed EFSVL Officer, Salah ad Din Mohammed Hussein Security Officer Asaad Mahmoud CLC, Iraq Mireia Termes Cash Operations Coordinator

Field research would not have been possible without the assistance of stakeholders and local residents from Salah ad Din and Anbar who took part in the research as participants and enumerators. The following individuals contributed to the field research and analysis undertaken for this research: Forcier Consulting

Sarah Nijholt Director, Middle East and North Africa Abdullah Hammad Mezaal Team Leader, Anbar Watban Faisal Farhan Team Leader, Salah ad Din

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III Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Table of Contents Acknowledgements ........................................................................................................................................................................... II

List of Figures ...................................................................................................................................................................................... IV

List of Tables ........................................................................................................................................................................................ IV

Acronyms ............................................................................................................................................................................................... V

Studied Location Map ...................................................................................................................................................................... VI

Executive Summary ........................................................................................................................................................ 1

1. Introduction ................................................................................................................................................................. 3

2. Context ........................................................................................................................................................................... 4

3. Demographics .............................................................................................................................................................. 6

4. Labour Market Assessment .................................................................................................................................... 8

Unemployment................................................................................................................................................................................ 8

Employment .................................................................................................................................................................................. 16

Household Income ...................................................................................................................................................................... 18

Skills and Vocational Training ............................................................................................................................................... 20

Businesses ...................................................................................................................................................................................... 27

5. Recommendations .................................................................................................................................................. 36

Annex 1: Methodology ................................................................................................................................................ 39

Research Design .......................................................................................................................................................................... 39

Research Methods ...................................................................................................................................................................... 39

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IV Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

List of Figures Figure 1. Map of Anbar (left) and Salah ad Din (right) ........................................................................................................ 5 Figure 2. How well can you read and write, by governorate (n=252) .......................................................................... 6 Figure 3. What is the highest level of education you have attained, by governorate (n=250)........................... 7 Figure 4. Are you currently employed, by governorate (n=246) .................................................................................... 8 Figure 5. Are you currently employed, by gender (n=246) ............................................................................................... 8 Figure 6. Why are you unemployed, by governorate (n=119) ......................................................................................... 9 Figure 7. Why are you unemployed, by gender (n=119) ................................................................................................. 10 Figure 8. What trade would you most like to work in (in Anbar) (n=127) ............................................................. 11 Figure 9. What trade would you most like to work in (in Salah ad Din) (n=111) ................................................ 12 Figure 10. Why do you want to work in this trade, by governorate (n=234) ........................................................ 13 Figure 11. What is preventing you from working in this trade, by governorate (n=238) ................................ 13 Figure 12. What type of employment are you currently seeking (in Anbar) (n=75) .......................................... 14 Figure 13. What type of employment are you currently seeking (in Salah ad Din) (n=57) ............................. 15 Figure 14. What trade are you in (in Anbar) (n=75) ......................................................................................................... 16 Figure 15. What trade are you in (in Salah ad Din) (n=40) ............................................................................................ 17 Figure 16. How are you paid, by governorate (n=124) .................................................................................................... 18 Figure 17. What are the three items you spend most of your income on, by governorate (n=252) ............ 19 Figure 18. Are you able to acquire 100,000 Iraqi Dinar in two weeks, by governorate (n=247) .................. 20 Figure 19. Are you able to acquire 100,000 Iraqi Dinar in two weeks (n=247) .................................................... 20 Figure 20. What type of training did you receive, by governorate (n=35) .............................................................. 21 Figure 21. Where can one receive skills training (not formal institutions), by governorate (n=252) ........ 22 Figure 22. Why did you not find a job one month after the training, by governorate (n=15)......................... 23 Figure 23. Why did you not find a job three months after the training, by governorate (n=13) ................... 24 Figure 24. What prevented you from participating in vocational training, by governorate (n=212) ........ 26 Figure 25. What prevented you from participating in vocational training, by gender (n=193) .................... 26 Figure 26. Sectors with opportunities for growth in Salah ad Din .............................................................................. 28 Figure 27. Sectors with opportunities for growth in Anbar ........................................................................................... 29 Figure 28. What entities provide loans to start a business, by governorate (n=252) ....................................... 31 Figure 29. How do most people acquire money to start new businesses, by governorate (n=252) ........... 32 Figure 30. How easy is it to obtain capital to start a business, by gender (n=232) ............................................. 32 Figure 31. What entities provide loans to maintain a business, by governorate (n=252)............................... 33 Figure 32. How do most people acquire money to maintain a businesses, by governorate (n=252) ......... 33 Figure 33. What makes a business successful in your community, by governorate (n=120) ........................ 34 Figure 34. What skills do you think are most important for a business, by governorate (n=252) .............. 34 Figure 35. What skills do you think are most important for a business, by gender (n=252) .......................... 35 Figure 36. What kind of support are trade associations providing, by governorate (n=35) .......................... 35

List of Tables Table 1. Methodology ..................................................................................................................................................................... 39

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V Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Acronyms EFSVL Emergency Food Security and Vulnerable Livelihoods FGD Focus Group Discussion IDP Internally Displaced Person ISIL Islamic State of Iraq and the Levant KII Key Informant Interview SES Skills and Employment Survey VSLA Village Savings and Loan Association WASH Water, Sanitation and Hygiene

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VI Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Studied Location Map

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1 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Executive Summary Oxfam is an international confederation of 19 organizations working together with partners and local communities in more than 90 countries globally. Oxfam’s vision is a just world without poverty where people are valued and treated equally, enjoy their rights as full citizen, and can influence decisions affecting their lives. In line with this, Oxfam works to find practical, innovative ways for people to lift themselves out of poverty and thrive Forcier was commissioned to conduct a labour market assessment in Anbar and Salah ad Din governorates, Iraq. The aim of the labour market assessment is to allow Oxfam to gain a deeper understanding of the local labour markets and explore the economic opportunities that can built resilient and economically empowered communities in the medium to long term. In December 2018, Forcier Consulting collected the data for this labour market assessment. Data collection included a thorough desk review, key informant interviews, focus group discussions, and a skills and employment survey. Employment and Income Based on the skills and employment survey, unemployment was much higher in Salah ad Din (42%) compared to Anbar (18%). In Salah ad Din, moreover, the Ministry of Labour states that the unemployment rate is 75%. In Anbar, the Ministry of Labour states that the unemployment rate is 60%. The difference between these statistics and the findings from the skills and employment survey are likely the result of the fact that the skills and employment survey primarily targeted heads of households, whom are most likely to be employed. Lastly, among those who are employed, there is a high reliance on public sector jobs, which is unfortunate as this is not contributing to private sector development. The main reason for unemployment, which is higher among females compared to males, is that there are no jobs available. Moreover, about a quarter of the unemployed respondents, primarily males, state that they do not have the capital in order to start a business, indicating that a significant proportion of the population is interested in starting a business. A lack of suitable skills is furthermore mentioned by approximately 10% of the respondents. In this regard, it should be noted that there is a mismatch between the available skills and the skills that are in demand. University graduates, for example, experience as much difficulty, if not more, finding employment compared to those who did not complete university, suggesting that university degrees do not suit the needs of the labour market in these governorates The average household income in the 30 days before data collection is almost double in Anbar (619,447 Iraqi Dinar) compared to Salah ad Din (331,119 Iraqi Dinar) governorate. This amounts to 3,441 Iraqi Dinar per household member per day in Anbar and 1,839 Iraqi Dinar in Salah ad Din, both which are above the poverty line, but still very low. As such, it is difficult for households to cover their basic needs and capital to start a business, for example, is often not available. Vocational Training Only 15% of the respondents in Anbar and 14% of the respondents in Salah ad Din had ever received vocational training, with minimal differences between gender. Low attendance of vocational training is due to the distance to the training centres, the cost of enrolling in the training programmes, and the general lack of or awareness of available training programmes/centres. On the other hand, amongst those who did participate in a training programme, 100% completed the vocational training programme. Among those, only 37% of respondents in Anbar and 57% in Salah ad Din had not found a job or started a business one month after completing the vocational training programme. This suggests that vocational training programmes are effective in ensuring employment.

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2 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Businesses In Salah ad Din and Anbar, a lot of sectors decreased in size due to the conflict. Infrastructure was destroyed as well as businesses. Now, some of these sectors are slowly recovering, but without significant investment in some of those sectors, it is unlikely that the private sector will grow significantly. In Salah ad Din, construction and the services sector (air-conditioning repair, mobile phone repair, electricity, plumber, etc.) are of potential interest for future growth. In Anbar, on the other hand, sector of interest include agriculture, the industrial sector, and the services sector (air-conditioning repair, mobile phone repair, electricity, plumber, etc.). Nevertheless, the government is not making any investments in the private sector in this governorate either and there are almost no opportunities for those who want to start a business to gain access to loans. Once a business is started, business owners may again face challenges related to capital since most of them do not have access to an ongoing stream of capital. Moreover, there is little support for businesses in the form of trade associations. In Anbar, 23% of respondents are aware of formal or informal trade associations or cooperatives. In Salah ad Din, on the other hand, only 8% of respondents are aware of such trade associations or cooperatives. Recommendations Based on this labour market assessment, the following recommendations are made: • Establish relationships with universities and the private sector to help them develop apprenticeship

programmes for fresh graduates. Those programmes should be at least 12 months in length and provide graduates with hands-on practical experience that they can leverage during job interviews.

• It is recommended to look into the development of village savings and loan associations, especially in Salah ad Din. A village savings and loan association is a group of people who save as a group and take small loans from those savings. After one year, the accumulated savings and the loan profits are distributed back to members. Savings are maintained in a loan fund from which members can borrow in small amounts, only up to three times their individual savings, to invest in a new business, for example.

• Vocational training programmes should be developed. These programmes should either be focused on starting a business or partnerships should be established with the private sector to ensure that those who participate in the training have opportunities to find employment or do internships to gain experience. If the aim of the vocational training is to ensure participants can start their own business, it should be considered to only provide trainings for which minimal starting capital is needed or to provide starting kits. When providing starting kit, however, it is important to take measures to ensure those kits are not being sold or left unused. For example, one can provide the starting kit against payment to increase ownership among the beneficiaries. Secondly, and this might be the more preferred option, one can opt to give larger starting kits to groups of participants. The participants can then work together in a larger business and control mechanisms can be put in place to ensure each one of the participants fulfills his duties in the business. A couple of potential training topics that could be considered are:

o Air-conditioning repair o Mobile phone repair o Barber/hairdresser o Electrician o Motorbike/car repair o Restaurant o Agriculture o Other service providing businesses

• Vocational trainings should always include lessons geared at general business skills in order to ensure participants are fully prepared to start their own business. In addition, one could consider providing business coaching to people who just started their business in order to ensure they receive sufficient guidance to make their business successful.

• Establish business associations that provide technical support to business owners as well as support for accessing loans.

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3 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

1. Introduction

Oxfam is an international confederation of 19 organizations working together with partners and local communities in more than 90 countries globally. Oxfam’s vision is a just world without poverty where people are valued and treated equally, enjoy their rights as full citizen, and can influence decisions affecting their lives. In line with this, Oxfam works to find practical, innovative ways for people to lift themselves out of poverty and thrive. In Iraq, Oxfam aims to build resilience in conflict-affected areas of the country by rehabilitating existing basic services and providing long-term interventions in the areas of water, sanitation and hygiene (WASH) and emergency food security and vulnerable livelihoods (EFSVL). Since the ousting of Saddam Hussein in 2003, the Iraqi population of around 33 million has only been subject to short periods of relative peace as competing interests struggle for control. Years of fighting in central and northern Iraq forced millions of Iraqis to flee their homes. Today, 3,8 million people have already returned home but there is an urgent need for humanitarian assistance, as many areas have completely been destroyed. Due to the rise of Islamic State of Iraq and the Levant (ISIl) in Iraq, moreover, additional displacement has taken place. Two of the affected governorates are Anbar and Salah ad Din. The protracted crisis in these governorates has strained local economies, leaving host community members, refugees, and returnees vulnerable to shocks and crises. In response to this situation, Oxfam is planning to implement EFSVL programmes in Anbar and Salah ad Din governorates in order to improve resilience and improve economic opportunities over the next three years. For this reasons, Forcier Consulting was contracted to conduct a labour market assessment in Anbar and Salah ad Din governorates. The aim of the labour market assessment is to allow Oxfam to gain a deeper understanding of the local labour markets and explore economic opportunities that can built resilient and economically empowered communities in the medium to long term. In particular, the objectives of this labour market assessment are to:

• Conduct a comparative analysis of the pre- and post-crisis situation of the labour markets; • Identify growth sectors and new opportunities in the labour market; • Identify challenges of access to resources, and means of increasing existing production and

incomes; • Identify skills demands, skill supplies, and gaps that act as barriers to labour; • Conduct analysis of principle market systems and identify key value chains in each selected

assessment site which can be seen as most prominent contributor to household economic growth;

• Provide a detailed mapping and analysis of four to five key value chains identified through market and business sector assessment which have potential to accommodate labour force;

• Provide concrete recommendations to strengthen and diversify strategies which can contribute toward increased employment and self-employment opportunities; and

• Identify key markets which are secure and profitable for the conflicted people to engage in. In December 2018, Forcier Consulting collected the data for this labour market assessment in Salah ad Din and Anbar governorates, Iraq. Data collection included a thorough desk review, Key Informant Interviews (KIIs), Focus Group Discussions (FGDs), and a Skill and Employment Survey (SES). This report provides an overview of the main findings.

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4 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

2. Context During the 80s, Iraq was among the Arab world’s most advanced economies.1 As an upper middle-income country, the Iraqi people enjoyed higher standards of education and healthcare compared to most of their Middle Eastern counterparts.2 However, due to conflict, and the financial and trade embargo imposed by the UN Sanctions Council in 1990, Iraq’s once thriving economy began to decline. In 2003, the situation escalated after an Unites States-organized coalition invaded Iraq and toppled the government. The following years were characterized by violent conflict between different groups competing for power. In 2008, a period of relative stability began after the parliament approved a security pact with the United States. Under the pact, all United States troops were due to leave the country by the end of 2011. Despite this progress, in January 2014, the situation quickly deteriorated after ISIL managed to seize the cities of Falluja and Ramadi. Later that year, ISIL also seized Iraq’s second largest city, Mosul. Government forces together with Shia and Kurdish allies fought back and managed to regain control over seized areas. In December 2017, the Iraqi government declared that its war against ISIL was over. Decades of conflict and instability have resulted in one of the largest and most volatile humanitarian crisis in the world.3 Approximately 4.2 million people are currently displaced, over 10 million people are in need of humanitarian assistance4 and there is a constant influx of refugees due to the ongoing war in Syria. Development and economic growth are further hampered due to ongoing political and social tension, violence, and terrorism. Sustainable employment opportunities, moreover, are scarce and this hinders people’s access to basic services, such as food, health, and education. Internally Displaced Persons (IDPs) and Syrian refugees in particular, often have no or limited opportunities to find sustainable employment due to the absence of a clear policy addressing the integration of refugees and IDPs into the labor market.5 Host communities, however, also experience economic and social hardship, and this threatens social cohesion in communities, as evidenced by increased social tension, ethnic conflicts and negative attitudes and intolerance towards crisis-affected groups. 6 Consequently, employment and livelihood opportunities are the second highest priority need throughout Iraq and the highest priority need among IDPs.7 Anbar governorate, specifically, is located in Western Iraq. It’s the largest governorate in the country and hosts 4.8% of the Iraqi population (1,723,153 individuals).8 As a result of the 2014 conflict, which originated in Anbar, large-scale displacement took place, the infrastructure was destroyed, and the labour market was crippled. While limited employment opportunities exists for almost everyone, IDPs and returnees appear to face even more challenges than host communities. In less than 5% of the locations in Anbar, for example, most IDPs are employed.9 Moreover, in nearly 70% of the locations,

1 Jonathan E. Sanford, “Iraq’s Economy: Past, Present, Future,” CRS Report for Congress, RL31944, June 3, 2003, p. 5, http://www.export.gov/iraq/pdf/crs_iraq_economy.pdf 2 Ibid. 3 UN Office for the Coordination of Humanitarian Affairs (2018). “Iraq: 2018 Humanitarian Response Plan,” https://reliefweb.int/sites/reliefweb.int/files/resources/English_2018_HRP_ExecutiveSummary_IRQ_Final.pdf 4 UNOCHA (2017). “Humanitarian Assistance Overview: Iraq,” http://www.earlyrecovery.global/sites/default/files/irq_2017_hno_0.pdf 5 Danish Refugee Council, UNDP, UNHCR, Japan ODA (2014). “Market Mapping and Analysis-Construction and Service-sector Labour Market Systems: A study of the opportunities in employment for Iraqi IDPs and Syrian Refugees - Kurdistan Region of Iraq.” https://reliefweb.int/sites/reliefweb.int/files/resources/EMMA%20KRI%20DRC%20Dec14%20Final%20Report%20%281%29.pdf 6 UNOCHA (2016). “Humanitarian Needs Overview 2016: Iraq,” https://reliefweb.int/sites/reliefweb.int/files/resources/final_iraq_2016_hno.pdf 7 Ibid. 8 IOM DTM figures (Master Lists Round 60 – December 2016) 9 IOM Iraq. „Integrated Location Assessment”. Part II. Governorates Profiles. March 2017. http://iraqdtm.iom.int/Downloads/DTM%20Special%20Reports/DTM%20Integrated%20Location%20Assessment/DTM%20Integrated%20Location%20Assessment_Part%20II_Governorate%20Profiles_March%202017.pdf

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5 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

IDPs reported the unavailability of jobs as their most pressing concern. The situation is not much better for returnees, as they reported the unavailability of jobs as the most pressing issue in 82% of the locations.10 Host communities, IDPs and returnees are also highly dependent on public-sector jobs. Private sector and agriculture-based jobs only take up a small proportion of the labour market.

Figure 1. Map of Anbar (left) and Salah ad Din (right)11

Salah ad Din governorate, moreover, is located north from Baghdad and is one of the most rural governorates of Iraq.12 The governorate accounts for 3.6% of the Iraqi population (1,276,677) and hosts a large number of IDPs and returnees.13 Even though unemployment among IDPs in this governorate is generally lower than in most parts of the country, the majority of IDPs are still unemployed in 35% of the locations. In addition, the majority of IDPs also reported unavailability of jobs as their most pressing issue. As for Anbar, most host communities, IDPs and returnees are primarily involved in the public sector and there is limited private sector development.14

10 Ibid. 11 Ibid. 12 Ibid. 13 IOM Iraq. „Integrated Location Assessment”. Part II. Governorates Profiles. March 2017. http://iraqdtm.iom.int/Downloads/DTM%20Special%20Reports/DTM%20Integrated%20Location%20Assessment/DTM%20Integrated%20Location%20Assessment_Part%20II_Governorate%20Profiles_March%202017.pdf 14 Ibid

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6 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

3. Demographics In total, 252 SESs were collected, 132 in Anbar and 120 in Salah ad Din. The majority of those being interviewed were male (83%, n=209), which is likely the result of the fact that the researchers asked to speak with the head of the household. Only if the head of the household refused or was not available, his or her spouse or another adult in the household would be asked to participate in the interview. Slightly more females were interviewed in Salah ad Din (24%, n=29) compared to Anbar (11%, n=14). The average age of the respondents was 38 years, with small differences between the two governorates. In both governorates, moreover, the majority of respondents interviewed belonged to the host community (84% in Anbar and 91% in Salah ad Din) and a small percentage of respondents identified as Internally Displaced Persons (IDPs) (16% in Anbar and 9% in Salah ad Din). None of the interviewed respondents identified themselves as returnees or refugees. The majority of respondents in both governorates can read and write very well, as can be seen in figure 2. Males, moreover, are more often literate (87%, n=181) compared to females (74%, n=32), which is in line with expectations. Similarly, members of the host community are more often literate (86%, n=189) compared to IDPs (72%, n=23). For those who cannot read and write, access to the labour market is likely even more limited than for others and it is recommended to develop a specific strategy on how to deal with this particular group. Figure 2. How well can you read and write, by governorate (n=252)

Next, respondents were asked what the highest level of education is they had attained. More than half of the respondents had either completed secondary school or university, as can be seen in figure 3. This is encouraging from a labour market development perspective as the availability of skilled workers can be a major push factor for the local economy. However, and this will be discussed in more detail in the next chapter, university graduates do not always have better economic opportunities compared to non-graduates and due to a mismatch between their skills and skills that are in demand in the labour market, they are often unemployed. Slightly more people in Anbar either attended some university or completed university, but more people in this governorate also attended religious education or a technical/trade school. When the data is divided between males and females, a clear gender-gap is visible. Females are double as likely to not have attained any education (female: 7%, male: 3%) and are less likely to have completed university (female: 24%, male: 36%). As such, it can be concluded that females have less access to educational opportunities. Consequently, this may influence their economic opportunities. Similar differences are

4%

15%

81%

3%

8%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Not at all

Somewhat

Very well

Salah ad Din Anbar

“There are a lot graduates in this community, but they cannot find jobs that fit their

qualifications. Especially people who have just graduated have no opportunities because they

do not have experiences in their field yet”

Host Community Member – Anbar

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7 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

found between members from the host community and IDPs. IDPS are about 3 times more likely (9%, n=3) to not have attained any education compared to members of the host community (3%, n=7). In addition, members of the host community are far more likely to have graduated from university (36%, n=78) compared to IDPs (19%, n=6). This leads to the conclusion that IDPs have less access to education compared to members of the host community. As for females, this is likely to influence their economic opportunities. Female IDPs, consequently, should be a group of particular interest when aiming to build resilient and economically empowered communities. Figure 3. What is the highest level of education you have attained, by governorate (n=250)

4%

3%

5%

9%

5%

10%

21%

7%

37%

4%

0%

4%

8%

13%

13%

23%

4%

30%

0% 5% 10% 15% 20% 25% 30% 35% 40%

None

Religious education

Technical or trade school

Some primary school

Completed primary school

Some secondary school

Completed secondary school

Some university

Completed university

Salah ad Din Anbar

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8 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

4. Labour Market Assessment

Unemployment To better understand the situation in both governorates with regards to employment, respondents were first asked whether they are currently employed, the results of which can be found in figure 4. Unemployment is much higher in Salah ad Din (42%) compared to Anbar (18%), but is high in both governorates. Moreover, only 20% (n=203) of males were unemployed compared to 72% (n=43) of females, suggesting limited employment opportunities among the latter group (See: Figure 5). When speaking with the Ministry of Labour in both governorates, however, an even more concerning picture emerges. In Salah ad Din, the Ministry of Labour states that the unemployment rate is 75%. In Anbar, the Ministry of Labour states that the unemployment rate is 60%. The difference between these statistics and the findings from the SES are likely the result of the fact that the SES primarily targeted heads of households, whom are most likely to be employed. Moreover, a large proportion of people in both governorates are employed in the public sector, thus not adding to private sector development. Figure 4. Are you currently employed, by governorate (n=246)

Figure 5. Are you currently employed, by gender (n=246)

18%

47%

11%

24%

42%

37%

6%

15%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

No

Casual labour

Part-time permanent labour

Full-time permanent labour

Salah ad Din Anbar

72%

7%

5%

16%

20%

50%

10%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No

Casual labour

Part-time permanent labour

Full-time permanent labour

Males Females

“I think that youth belong to the most vulnerable group in this community. They often have to go to school and therefore have no time

to have full-time jobs. After they graduates, they will find that there are only poorly paid

jobs and no jobs that fit their skills.”

Host Community Member – Anbar

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9 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Qualitative interviews reveal that unemployment was already high before the crisis, but has increased significantly since. Not only have some businesses been destroyed or looted, the entire infrastructure in both governorates has been severely damaged, thus limiting business opportunities. As such, some businesses were closed and only a few have restarted after the crisis ended. Among those who did not re-open their business after the crisis, a large proportion is said to have left the governorate is search of a more stable area to continue their business activities. The availability of jobs has thus decreased and there is an even stronger reliance on public sector jobs compared to before the crisis. Figure 6. Why are you unemployed, by governorate (n=119)

Among respondents who are currently unemployed, the question was posed why they are not employed. The results of this can be found in figure 6 and 7. In line with the findings above, the main reason for unemployment, irrespective of gender and location, is that there are no jobs available. Qualitative interviews confirm that while there were not enough jobs either before the crisis, the lack of jobs has significantly increased since. The fact that a significant proportion of the population is employed in the public sector is problematic in this sense as the public sector cannot absorb much more employees. To create new employment opportunities, private sector development is thus necessary. While some development has taken place in the last two years, government officials as well as employees from the Chamber of Commerce highlight that the private sector is not developing quickly enough because of multiple reasons. First, a lot of investors who ran businesses in both governorates left Iraq during the crisis. Secondly, the government is not investing sufficient funds in private sector development. Thirdly, most people who are willing to start a business do not have access to funds in order to start or maintain a business. Indeed, almost 30% of male respondents state that they do not have the capital in order to start a business. This indicates that a significant proportion of the male population is interested in starting a

7%

4%

0%

73%

7%

24%

11%

27%

5%

9%

57%

3%

26%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Don't know how to start a business

Have not tried

No jobs available

Wages too low

No starting capital

No suitable skills

Salah ad Din Anbar

“Whether you are employed all depends on your skills and whether you have capital. When you

lack both, you will be unemployed.”

Returnee – Salah ad Din

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10 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

business and with sufficient (financial) support they might be able to. Among females, only 13% said that their lack of starting capital was the reason of their unemployment. This indicates that females are less motivated to start their own business. Unfortunately, it is unknown how many of the respondents who want to start a business may have had a business before the crisis started. However, it is safe to assume that at least a small proportion may have owned a business before the crisis. Figure 7. Why are you unemployed, by gender (n=119)

Qualitative interviews with stakeholders from both Anbar and Salah ad Din, moreover, confirm that most people do not have starting capital in order to start a business. One respondent says about this: “I do not have the capital to start my own business. However, I could maybe start a very small business and try to save money to slowly expand this business.” As such, starting capital is a significant deterrent for people to start a business, but activities aimed to encourage people to start businesses that do not need a lot of upfront investment are recommended. A lack of suitable skills, moreover, is mentioned by approximately 10% of the respondents as a main reason for unemployment. Indeed, multiple stakeholders report that there is a mismatch between the available skills of those who are unemployed and the skills that are in demand by the labour market. For example, it appears that university graduates experience severe challenges trying to gain access to the labour market. This is because they do not have actual work experience when they graduate from university and the skills and knowledge they have does not align with the needs of the labour market. More specifically, a lot of the jobs that are available do not require university degrees but do require 1 to 3 years of work experience. Because of this, it is recommended to start working together with universities and businesses to develop apprenticeships through which graduates can gain significant work experience.

23%

3%

10%

60%

3%

13%

7%

18%

6%

4%

64%

4%

29%

11%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Don't know how to start a business

Have not tried

No jobs available

Wages too low

No starting capital

No suitable skills

Males Females

“All the available jobs that are currently present are in construction. These jobs are so

poorly paid that is almost forces the employees to resign and search for something better.”

Returnee – Salah ad Din

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11 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Lastly, both host community, returnee and IDP respondents also reported low wages as a deterrent to finding employment. This suggests that some people do not accept employment opportunities that are available due to the low compensation these jobs offer. Figure 8. What trade would you most like to work in (in Anbar) (n=127)

2%

0%

4%

7%

0%

1%

1%

1%

1%

1%

1%

1%

0%

0%

3%

1%

0%

3%

1%

0%

3%

2%

0%

2%

5%

1%

13%

6%

6%

4%

2%

1%

5%

1%

3%

25%

0% 5% 10% 15% 20% 25% 30%

Vegetable/food seller

Teaching

Tailoring

Shop owner/retailer/trader

Restaurant

Poultry

Police

Oil processing

Mobile charging service (generator)

Mobile charging service (solar)

Metal work

Masonry

Livestock fattening

Livestock herding/selling

Language skills - English

Home economics (food processing)

Health care - doctor/nurse

Government (not teaching or police)

Fishing

Electronic device maintainance - other devices

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

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12 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 9. What trade would you most like to work in (in Salah ad Din) (n=111)

0%

1%

10%

1%

1%

0%

3%

0%

0%

0%

0%

0%

2%

1%

2%

3%

2%

3%

1%

1%

3%

1%

3%

0%

3%

2%

6%

3%

7%

5%

8%

2%

5%

1%

2%

22%

0% 5% 10% 15% 20% 25%

Vegetable/food seller

Teaching

Tailoring

Shop owner/retailer/trader

Restaurant

Poultry

Police

Oil processing

Mobile charging service (generator)

Mobile charging service (solar)

Metal work

Masonry

Livestock fattening

Livestock herding/selling

Language skills - English

Home economics (food processing)

Health care - doctor/nurse

Government (not teaching or police)

Fishing

Electronic device maintainance - other devices

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

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13 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Next, respondents were asked in which trade they would most like to work in (See: Figure 8 and 9). In Anbar, the most popular employment opportunities include administrative work, business work (marketing), and work as a shop owner/trader/retailer. In Salah ad Din, the three most preferred employment opportunities include administrative work, work as a tailor, and working in a beauty salon. The three trades males are most interested in include, administrative/office work (23%), business-marketing (11%), and business-entrepreneurship/management. The majority of women, on the other hand, would either like to work in tailoring (39%) or administrative/office work (21%). While administrative work is not operationalized in the quantitative survey and enumerators are not allowed to give additional information about what the term “administrative work” means, from qualitative interviews it can be obtained that this involves lower-level jobs within businesses. The reason why these jobs are popular, according to stakeholders interviewed in qualitative interviews, is that they do not require hard physical labour, pay relatively well, and are enjoyable. Figure 10. Why do you want to work in this trade, by governorate (n=234)

Figure 11. What is preventing you from working in this trade, by governorate (n=238)

The main reason why respondents want to work in those trades can be found in figure 10. In both governorates, the main reason for wanting to work in those trades are that the respondent enjoys the work and that the work pays well. As such, it can be concluded that work enjoyment is a primary need

29%

45%

7%

3%

10%

0%

6%

31%

38%

12%

6%

2%

0%

12%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Pays well

Enjoy the work

The work is easy to do

Many jobs available

Everyone does this trade

No one does this trade

Already have some knowledge

Salah ad Din Anbar

12%

9%

48%

9%

2%

2%

1%

22%

16%

5%

38%

14%

1%

4%

0%

32%

0% 10% 20% 30% 40% 50% 60%

Other

Does not pay enough

No jobs available

The work is difficult

Gender issues

Little or no childcare available

Don’t have transportation

Nothing, I already work in that trade

Salah ad Din Anbar

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14 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

for most respondents and high salaries alone do not necessarily fulfill their employment desires. Salaries, however, appears to be a more important factor for males and enjoyment for females. 58% of women are interested in a particular trade because they enjoy the work compared to 38% of males and 17% of females are interested in a trade for the pay compared to 32% of males. Lastly, the main reason for not working in the respondents’ desired trade is that there are not jobs available in that trade, which is in line with earlier findings related to the lack of available jobs (See: Figure 11). Figure 12. What type of employment are you currently seeking (in Anbar) (n=75)

3%

1%

0%

0%

3%

1%

1%

1%

1%

0%

1%

0%

0%

0%

4%

1%

3%

1%

8%

1%

4%

1%

7%

1%

15%

12%

8%

0%

1%

1%

4%

1%

0%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Welding

Vegetable/food seller

Teaching

Tailoring

Shop owner/retailer/trader

Restaurant

Poultry

Police

Mobile charging service (generator)

Livestock fattening

Livestock herding/selling

Language skills - English

Home economics (food processing)

Health care - doctor/nurse

Government (not teaching or police)

Friut/forest seedling production

Electronic device maintainance - other devices

Electronic device maintainance - airconditioning

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

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15 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 13. What type of employment are you currently seeking (in Salah ad Din) (n=57)

0%

2%

2%

5%

2%

5%

4%

2%

0%

2%

4%

2%

5%

2%

5%

0%

0%

0%

5%

2%

7%

0%

4%

0%

12%

4%

12%

5%

7%

0%

4%

0%

4%

28%

0% 5% 10% 15% 20% 25% 30%

Welding

Vegetable/food seller

Teaching

Tailoring

Shop owner/retailer/trader

Restaurant

Poultry

Police

Mobile charging service (generator)

Livestock fattening

Livestock herding/selling

Language skills - English

Home economics (food processing)

Health care - doctor/nurse

Government (not teaching or police)

Friut/forest seedling production

Electronic device maintainance - other devices

Electronic device maintainance - airconditioning

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

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16 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Lastly, respondents were asked what type of employment they are currently seeking, the result of which can be found in figures 12 and 13. In both governorates, it is clear that the majority of respondents is looking either for administrative work or business work, especially management and entrepreneurship. Among females, moreover, 38% (n=117) were seeking administration work and 20% (n=3) were looking for work as tailors.

Employment Figure 14. What trade are you in (in Anbar) (n=75)

0%

0%

1%

3%

0%

1%

4%

15%

3%

4%

11%

0%

1%

1%

16%

1%

3%

1%

3%

1%

1%

3%

3%

23%

0% 5% 10% 15% 20% 25%

Welding

Vegetable/food seller

Teaching

Shop owner/retailer/trader

Police

Mechanic - auto

Healthcare (doctor/nurse)

Government (not teaching or police)

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

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17 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 15. What trade are you in (in Salah ad Din) (n=40)

Among respondents who currently are employed (See: Figure 14 and 15 for the specific sectors), clear gender differences are visible. Females are mostly employed as administrative workers (42%, n=5) and in the government (17%, n=2). Males, one the other hand, are mostly employed as administrative workers (26%, n=30), in businesses (marketing)

3%

3%

0%

0%

3%

0%

3%

3%

3%

3%

8%

3%

3%

0%

5%

0%

3%

8%

5%

0%

0%

0%

5%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Welding

Vegetable/food seller

Teaching

Shop owner/retailer/trader

Police

Mechanic - auto

Healthcare (doctor/nurse)

Government (not teaching or police)

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Computer/ITC

Carpentry

Business - marketing

Business - finance/accounting

Business - entrepreneurship/management

Blacksmith

Beauty salon

Barber/hairdresser

Arts and crafts

Animal healthcare

Agriculture

Administrative work

Salah ad Din

“There are almost no jobs in this community. For IDPs and returnees, it is even harder to get a job. But the group that is most advantaged when it comes to finding a job are women.”

Ministry of Labour – Anbar

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18 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

(11%, n=13), and through day labour (10%, n=11). Respondents were then asked a set of questions was asked to gain insights on their working conditions. First, they were asked how many days a week they usually work. On average, respondents in Anbar work 5.8 days a week and respondents in Salah ad Din work 5.5 days a week. Men work 5.7 days a week on average compared 5.3 days a week for women. The number of hours respondents work in a day ranges between 3 to 16, with an average of 8.8 in Anbar and 8.0 in Salah ad Din. On average, men work 8.6 hours a day and women work 7.6 hours a day. Most respondents are paid based on a monthly salary, as can be seen in figure 16 below. Figure 16. How are you paid, by governorate (n=124)

Contrary to expectations, 51% (n=42) of (employed) respondents in Anbar stated that they saved some money each month and 20% (n=8) of respondents in Salah ad Din reported to save money each month. Interestingly, females (58%, n=7) are more likely to save money each month compared to males (39%, n=43). From qualitative interviews, however, it is clear that although some people are able to save money, they often have to spend this money at once when a crisis or shock occurs in their household. 90% (n=43) of those who save money each month keep their money at home and the other 10% (n=5) keeps their money in an informal savings group (all types included). Based on the low percentage of people in Salah ad Din who currently save money, it is recommended to look into the development of informal savings groups. More specifically, the people in Salah ad Din would benefit from participation in Village and Saving Loan Associations. “A Village Savings and Loan Association (VSLA) is a group of people who save together and take small loans from those savings. The activities of the group run in cycles of one year, after which the accumulated savings and the loan profits are distributed back to members. The purpose of a VSLA is to provide simple savings and loan facilities in a community that does not have easy access to formal financial services. […] Savings are maintained in a loan fund from which members can borrow in small amounts, up to three times their individual savings. Loans are for a maximum period of three months in the first year and loans may be repaid in flexible instalments at a monthly service charge determined by the group. Each group may also have a social fund, which provides members a basic form of insurance. The social fund serves as a community safety net and may serve a number of purposes – such as emergency assistance, festivals and funeral expenses – for the entire community, including group members and non-members.”15

Household Income The average household income in the 30 days before data collection is almost double in Anbar (619,447 Iraqi Dinar) compared to Salah ad Din (331,119 Iraqi Dinar) governorate. This is likely in part due to the higher employment rate within Anbar governorate. Moreover, while men reported an average monthly income of 502,657 Iraqi Dinar in the month prior to data collection, women reported an average monthly income of only 380,907 Iraqi Dinars for the same period. The majority of respondents

15 http://www.vsla.net/aboutus/vslmodel

14%

9%

11%

66%

11%

5%

14%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Self-employed

Piece rate

Day labour

Salary

Salah ad Din Anbar

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19 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

also confirmed that this amount of money represents what they usually make in a month. Divided by 30, that means that most households in Anbar have around 20,648 Iraqi Dinar per day to spend for their entire family. For households in Salah ad Din, this amounts to 11,037 Iraqi Dinar. If we assume the average household size to be 6 as reported in the ‘Gender in Brief’ report by CARE International and Oxfam16, that would amount to 3,441 Iraqi Dinar per household member per day in Anbar and 1,839 Iraqi Dinar in Salah ad Din, both which are above the poverty line, but still very low. Figure 17. What are the three items you spend most of your income on, by governorate (n=252)

16 CARE International and Oxfam. Iraq: Gender in Brief: Retrieved from: https://reliefweb.int/sites/reliefweb.int/files/resources/GiB-Iraq-CARE-Oxfam-1_0.pdf

0%

5%

7%

1%

1%

1%

1%

12%

11%

3%

17%

60%

88%

39%

3%

2%

4%

5%

28%

1%

1%

6%

2%

0%

3%

1%

8%

9%

1%

21%

47%

95%

50%

1%

0%

20%

4%

17%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Transportation - bus

Transportation - car

Transportation - bicycle

Tools (agricultural, home repair, etc.)

Soap and washing powder

Seeds (for planting)

School fees and supplies

Mobile phone

House repair (plumber, carpenter, electrician, etc.)

Household items (bedding, kitchenware, etc.)

Health care/Medicine

Food

Clothes and footwear

Cloth and sewing items

Charcoal

Books and stationary

Beverages

Accommodation

Salah ad Din Anbar

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20 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Qualitative interviews indeed confirm that purchasing power is low in both governorates. One business owner states: “people in this community cannot buy anything they need because they do not earn enough money and the prices of products and services are often high”. This leads to a vicious circle: businesses do not grow because they do not have enough customers who can purchase their goods, unemployment remains high as businesses do not expand, purchasing power remains low because there are not enough employment opportunities. When asked to community members (host community, IDPs, and returnees) it becomes apparent that most households only have sufficient income to fulfill their basic needs. Indeed, as can be seen in figure 17, the majority of households in both governorates spend most of their money on food, clothes and medical needs, irrespective of gender. Healthcare costs, moreover, can already be problematic. IDPs in Salah ad Din, for example, explain that their salaries only allow them to buy food, clothes, and sometimes some needed services. Returnees, moreover, state that they only spend their money on food and healthcare. In Anbar, a member of the host community explains: “salaries are average here. Some people make quite some money and others are very poor. However, most households will spend all of their money on food, households needs, educational costs and transportation. This is primarily because a lot of households depend on only one source of income and this is mostly from the head of the household.” Figure 18. Are you able to acquire 100,000 Iraqi Dinar in two weeks, by governorate (n=247)

Figure 19. Are you able to acquire 100,000 Iraqi Dinar in two weeks (n=247)

Next, respondents were asked whether they would be able to acquire 100,000 Iraqi Dinar in two weeks in case of an emergency. This question measures resilience in households against shocks and crises. The majority of respondents are very likely or somewhat likely to acquire this money, as can be seen in

11%

54%

35%

18%

46%

36%

0% 10% 20% 30% 40% 50% 60%

Not at all likely

Somewhat likely

Very likely

Salah ad Din Anbar

22%

41%

37%

13%

52%

35%

0% 10% 20% 30% 40% 50% 60%

Not at all likely

Somewhat likely

Very likely

Males Females

“Before the crisis started, purchasing power was better in this community. Now, people do not have a lot of money to spend anymore. All their money essentially goes to food

and other basic needs”

Business Owner – Salah ad Din

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21 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

figure 18. While 35% of men and 37% of women report to be very likely to be able to acquire the emergency money, 22% of women reported to be not at likely to be able to gather emergency funds compared to 13% (n=41) of their male counterparts (See: Figure 19). The majority of both men and women, nevertheless, reported that they would acquire the funds from income from work. The sources that would be used to acquire this money do differ between the two governorates. In Anbar, 92% (n=108) would use income from work to acquire this money while this is only 55% (n=52) in Salah ad Din. In Salah ad Din, furthermore, 17% (n=16) would use loans from extended family, 9% (n=9) would use loans from the community and 8% (n=8) would use support from extended family. As such, it can be concluded that respondents in Salah ad Din rely more heavily on their family and community in times of crisis.

Skills and Vocational Training Figure 20. What type of training did you receive, by governorate (n=35)

5%

5%

5%

5%

5%

5%

5%

5%

5%

11%

0%

0%

11%

0%

0%

5%

26%

6%

6%

6%

0%

0%

0%

13%

0%

0%

0%

6%

6%

0%

13%

6%

6%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Welding

Tailoring

Mechanic - auto

Mobile charging services

Masonry

Healthcare (doctor/nurse)

Government (not teaching or police)

Electronic device maintainance - mobile phones

Electrician

Day labour

Construction site labourer

Business - marketing

Business - finance/accounting

Barber/hairdresser

Arts and crafts

Administrative work

Salah ad Din Anbar

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22 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

One of the underlying reasons that people do not find jobs or start a business is that they lack the right vocational skills, something that was reported by multiple stakeholders during qualitative interviews in both governorates. To further analyze this, respondents were asked whether they had ever received vocational training. Only 15% (n=19) of the respondents in Anbar and 14% (n=16) of the respondents in Salah ad Din had ever received such training. Moreover, an equal percentage of males and females had received vocational training (14%). Figure 20 lists the topics of the trainings that have been provided. In both governorates, the most common training is about administrative work, which is in line with the finding that the most common job among respondents is to be an administrative worker. Figure 21. Where can one receive skills training (not formal institutions), by governorate (n=252)

More than half of the respondents who had received vocational training had received this through a government training institute. When speaking with a vocational training center staff in Anbar, moreover, it becomes clear that the programmes offered at this center include trainings in computer skills, car repair, English language, mobile phone maintenance, and life skills. Which training will be provided to which participant depends on the background and educational qualifications as well as the participants’ desire. However, the training center will not just offer any training the participant wants. “Sometimes we have someone who has not finished elementary school who wants to participate in a computer training. We cannot do this but we will offer another training for this person that is more suitable for his or her level. However, sometimes they will then refuse to participate in the training.” The vocational training staff further explains that training is offered to the unemployed, students (during the summer holiday) and government officials who want to gain experience.

However, that less than 20% of respondents have received vocational training in each governorate suggests that that training programmes are not widely available or that usage of training opportunities is low. When asked to respondents in the quantitative survey, it

3%

71%

29%

31%

3%

62%

14%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

From family, relatives, friends

From local business associations or cooperatives

From individual traders, producers or serviceproviders (mentorship)

Salah ad Din Anbar

“I cannot find a job because I do not have the right skills. Similarly, I cannot start a business because I

do not know how to do that.”

IDP – Anbar

“We need to encourage youth in particular to start their own businesses. At the moment, the private sector is weak and there are opportunities for growth. However, youth

lack skills and capital to start their own business.”

Vocational Training Centre – Anbar

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23 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

becomes clear that most respondents in both governorates are more familiar with the idea to get skills training through informal channels (family, relatives, friends) than through formal channels. Indeed, IDPs in Salah ad Din report that they do not know any place where they can participate in a vocational training programme. Returnees in this governorate, however, report that a NGO offered vocational training programmes in the past. They did not know, however, which NGO this was or what they should have done in order to participate in this training. In Anbar, on the other hand, respondents reported being aware of centers offering vocational training programmes. However, access to such training programmes was low due to the high costs of participating, especially for trainings provided by private institutions. Lastly, some respondents mention that training facilities are far away and that results in a situation in which they do not only need to pay for enrollment in the training programme, but also for transportation. This makes participation in a vocational programme not always a cost worthy investment according to some. A vocational training center staff in Anbar confirms that transportation is a deterrent for potential participants. This staff member suggests to provide participants with a small transportation stipend in order to encourage then to participate. Figure 22. Why did you not find a job one month after the training, by governorate (n=15)

To know whether the provision of vocational training programmes are an effective method to stimulate the economy and build resilience amongst community members, a series of questions was asked about the results of the training for the participant. First, respondents were asked whether they had completed the programme from the start till the end. All respondents had completed the vocational training programme. This suggests that those who participated were highly motivated. How the vocational training programme impacted employment, however, was different in the two governorates. In Anbar, 37% (n=7) of the participants had not found a job one month after completing the training. 37% (n=7) found a job, 21% (n=4) started a business, and 5% (n=1) found a job and started a business. The vocational staff member in this governorate, moreover, reports that most participants in the training programme find employment or start a business of their own after completing the programme. In Salah ad Din, the numbers look less promising: 57% (n=8) did not found a job, 36%

43%

14%

15%

29%

0%

14%

0%

0%

0%

13%

88%

0%

25%

0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Don't know how to start a business

Have not tried

No jobs available

Wages too low

No starting capital

No suitable skills

Salah ad Din Anbar

“There are centres that offer vocational training, but the

costs of these trainings is high and the centres are located far

away .”

Business Owner – Anbar

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24 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

(n=5) found a job and 7% (n=1) started a business. There are some differences when the data is split by gender. 43% (n=12) of males had not found a job, 36% (n=10) found a job, 18% (n=5) started their own business, and 4% (n=1) found a job and started their own small business. In comparison, 60% (n=3) of women reported that they had not found a job one month after completing the training while 40% (n=2) found a job. This suggests that vocational training more often leads to employment among males. Overall, however, these numbers are encouraging as it cannot be expected that training programmes lead to employment for all the participants. If a vocational training programme can achieve some sort of employment for almost half of its participants, this should be considered high successful. It is nevertheless interesting to know why some participants did not find a job within one month after completion of the vocational training programme (See: Figure 22). In Salah ad Din, the main reason for this is that there are no jobs available. A smaller but still significant proportion of the training participants furthermore reported that they lacked starting capital in order to start a business. In Anbar, the lack of available jobs is also the main reason for not finding employment after completing the programme, but respondents also cited that they did not try and that they lacked starting capital as significant factors. Similarly, the unavailability of jobs was reported as the main reason for not being able to find a job within one month of completing the vocational training programme by males (58%, n=7) and females (66%, n=2). Figure 23. Why did you not find a job three months after the training, by governorate (n=13)

When interpreting the results above, two things should be kept in mind. First, respondents may have been able to find a job one month after completing the vocational training programme, this does not necessarily translate into long-term, sustainable employment. Secondly, finding employment within one month after completing the vocational training programme may have been too short of a timeframe for some. As such, respondents were also asked if they had been able to find a job or start a business three months after completing their vocational training. The numbers looked slightly more positive in Salah ad Din, which indicates two things. First it indicates that it takes longer than one month for respondents

43%

14%

0%

14%

14%

14%

0%

33%

0%

0%

50%

17%

33%

0%

0% 10% 20% 30% 40% 50% 60%

Other

Don't know how to start a business

Have not tried

No jobs available

Wages too low

No starting capital

No suitable skills

Salah ad Din Anbar

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25 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

to find a job or start a business after receiving training. Secondly, it indicates that those who found a job one month after completing the training were still employed two months later. Instead of the 57% (n=8) who did not find a job after one month, after three months only 40% (n=6) had not yet found a job or started a business. Moreover, 47% (n=7) had found a job, 7% (n=1) had started a business, and 7% (n=1) had found a job and started a business. In Anbar, on the other hand, the same percentage of respondents had not found a job or started a business (37%, n=7). However, more respondents now had started their own business (32%, n=6). As for the reasons why some respondents did not find a job three months after completing the vocational training, those can be found in figure 23. Interestingly, while some respondents did not try to find a job one month after completing the vocational training programme, none of the respondents had not tried three months after the training had ended. This suggests that those who participate in vocational training programmes are highly motivated to either find a job or start a business. When divided by gender, the data shows that the employment status of males did change between 1 and 3 months after completing the vocational training. 34% (n=10) of men reported that they found a job, 34% (n=10) did not find a job, 24% (n=7) started their own business, and 7% (n=2) found a job and started their own business. In other words, some males were able to find a job or start a business after one to three months after completing the training. For females, on the other hand, the numbers are the same as after one month. To assess the usefulness of vocational training, respondents were asked how useful the vocational skills they gained were for their current job. In Anbar, 87% (n=13) say that the training was very useful for their current job and 13% (n=2) found this to be somewhat useful. In Salah ad Din, one the other hand, 43% (n=3) found the training very useful, 43% (n=3) found the training somewhat useful and 14% (n=1 found the training not at all useful. It should be kept in mind here, though, that the number of respondents who have received training is rather low. Qualitative interviews, nevertheless, confirm that trainings are very useful. One returnee in Salah ad Din stated: “I think that the trainings are very helpful. Especially when the training centre also provides participants with starting kits so that they can start their own business.” A business man in the same governorate, moreover, states: “I have received training in the past and this training has helped me a lot within the business that I am currently running.” As such, it appears that the training programmes are clearly beneficial for its participants. However, there might also be an advantage for the entire community when training programmes are being offered. A staff from the Ministry of Labour in Salah ad Din states: “if we can provide more vocational training opportunities for the people in this governorate, I am sure this would have a positive impact on the economy and unemployment.” Then, respondents were asked what has prevented them from participating in a vocational training programme. This question was only asked to respondents who had not participated in vocational training in the past. The most given answer to this question is that the respondent is not interested in Anbar and that there is not training available in Salah ad Din, as can be seen in figure 24. When divided by gender, almost half of the females were not interested in participating in vocational training and the majority of men reported that there was no training available (See: Figure 25). In Anbar, 41% (n=38) of men were not interested in vocational training compared to 14% (n=10) of men in Salah ad Din. 70% of men (n=49) in Salah ad Din also reported that there was no vocational training available in comparison to 27% (n=25) of men in Anbar.

“I do not hire trained staff. Instead, I will provide staff with on the job

training so they know how to work with our machines.”

Business Owner – Salah ad Din

“I would like to participate in a vocational training programme, but it would be very helpful if the programme also helps with

stating kits or starting capital.”

Returnees – Salah ad Din

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26 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Women in both Anbar and Salah ad Din were not interested in receiving vocational training, 45% (n=5) and 50% (n=10) reported this response, respectively. Figure 24. What prevented you from participating in vocational training, by governorate (n=212)

Figure 25. What prevented you from participating in vocational training, by gender (n=193)

Nevertheless, 54% (n=133) of respondents would like to receive vocational training in the future, a percentage that is relatively similar in both states. Men are more interested in receiving more vocational and/or skills training than women, with 57% (n=118) of men expressing such interest in comparison to 36% (n=15) of females. The main reasons for wanting vocational training are to get a job (43%, n=56), to improve existing skills (28%, n=37), or to increase income (24%, n=31). There are again only few differences between the two governorates in the motivation of respondents to want to participate in a vocational training programme.

42%

28%

21%

7%

2%

22%

63%

12%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70%

Not interested

No training available

Can't afford training

Training too far away

No space in training program

Salah ad Din Anbar

48%

39%

3%

6%

3%

30%

46%

20%

4%

1%

0% 10% 20% 30% 40% 50% 60%

Not interested

No training available

Can't afford training

Training too far away

No space in training program

Males Females

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27 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

As such, it can be concluded that the provision of vocational training programmes would likely result in beneficial results. It should, however, be kept in mind that there a few job available at the moment and that the vocational training programmes should either be focused on starting a business or partnerships should be established with the private sector to ensure that those who participate in the training have opportunities to find employment or do internships/apprenticeships to gain experience. If the aim of the vocational training is to ensure participants can start their own business, it should be considered to only provide trainings for which minimal starting capital is needed. While starting kits are often handed out after vocational training programmes have been completed, this has not always led to the desired effect. For example, stories were told about women receiving a sewing machines. After a few months, a lot of these women had sold their machine or were no longer making use of the machine as they were unable to really generate sufficient revenue or the women were unmotivated/unskilled to start a business. Similar stories were heard about other types of vocational training after which participants received starting-kits. In essence, there are two ways to deal with this. Firstly. One can provide the starting kit against a payment (for example: 25% of the starting kit value) to increase ownership among the beneficiaries. Secondly, and this might be the more preferred option, one can opt to give larger starting kits to groups of participants. The participants can then work together in a larger business and control mechanisms can be put in place to ensure each one of the participants fulfills his duties in the business. A couple of sectors in which people can start businesses with minimal starting capital, which are desired by some respondents, and that have the potential for growth based on the qualitative and quantitative data are:

- Air-conditioning repair - Mobile phone repair - Barber/hairdresser - Electrician - Motorbike/car repair - Restaurant - Construction - Other service providing businesses

Businesses

According to the Chamber of Commerce as well as the Ministry of Labour in Salah ad Din, mechanics, tailors, and barbers form the main population of employed people. These sectors were not as much impacted by the crisis as other sectors and therefore continue to exist at a similar level. An official from the Ministry of Labour in this governorate, moreover, still thinks that this sector is not oversaturated and that there is strong potential for growth, especially since training courses for tailors and barbers are widely being offered. Moreover, markets employ a significant number of people in this governorate.

“We produce mineral water. For this business, we only need the water and bottles to put the water in. Those bottles we mostly get from Kirkuk governorate. However, it is quite expensive for us to transport the bottles from Kirkuk to Salah ad Din, not only do we pay for transportation, we also pay duties. Once we have received the bottles, we arrange and purify them. Then we fill them with water and sell them at the local market. Unfortunately, our factory is quite far away from the local market and therefore

we have to spend additional money on the transportation costs.

The company is not very profitable. Due to the cost of transportation and duties, our profit margins are under pressure. However, we cannot raise the price of water because most households would not buy

our water anymore if we did.”

Business Owner – Salah ad Din

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28 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

These markets were impacted by the crisis but are slowly recovering now. As such, there is a potential for growth here. Construction, moreover, is one of the sectors that is currently growing because there are many projects aimed at rehabilitating the old infrastructure. Another sector that has a potential for growth is the services sector (air-conditioning repair, mobile phone repairs, electricity, plumbers, etc.). This sector was severely impacted by the crisis but has not really recovered at all. Overall, the private sector remains underdeveloped and the government is not making any investments in the private sector. As such, it is not likely that the private sector will grow much in the coming years unless the government changes its priorities or if the international community makes significant investments. Figure 26. Sectors with opportunities for growth in Salah ad Din

In Anbar, the situation is quite different, as explained by the Chamber of Commerce and the Ministry of Labour. The largest sectors (those that employ the most people) are the industrial, health and education sectors. However, the educational sector is probably oversaturated as it employs a lot of people who do not even receive a wage for their work. In addition, the industrial sector is still large, but has been impacted a lot because of the crisis. There used to be a glass factory, which was completely destroyed. The phosphor plant also has been severely impacted by the crisis. There are also opportunities in this governorate, especially when it comes to agriculture. At the moment, there are large parts of agricultural land that can be used for production, but are not being used at the moment. The industrial sector also has potential. However, both these sectors often require significant investments before one can reap the

1: Construction: Construction work has not yet recovered since the crisis. However, there is a lot of opportunity for construction work due to the destruction that took place during the crisis. Inputs for constrcution are reported to be low in price and thus there is an opportunity for good profits. However, there are some issues in the supply chain that lead to delays in the provision of inputs and consequently cost money. As such there are opportunities for construction companies, but also for companies providing inputs for constrcution.

2. Service sector: The service sector used to be large, but has never really recovered from the crisis. However, to start working in the service sector only requires a small investment and the demand for high quality services is high. Some services that are reported to be in high demand include air-conditioning repair, mobile phone repairs, electricity, plumbers, etc. These sectors can be further developed by providing vocational training and starting kits.

3: Markets: Markets are another sector that was highly impacted during the crisis but now has started to recover. However, people complain about the high pricies of food as well as high quality non-food products. A specific consumer demand survey will need to be conducted in order to analyze which food and non-food products have the highest potential for profit.

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29 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

benefits. This is different for the services sector, in which people can make a quick profit without having to wait. Figure 27. Sectors with opportunities for growth in Anbar

The Chamber of Commerce staff in Anbar explains that “there is a lack of funding for projects because the banking system is very underdeveloped. If a banking system would be developed, there would be more opportunities to develop the private sector. However, there is also an issue because a lot of people from the local community reject loans because of the interest, which is against religious teachings.” Due to the crisis, moreover, a lot of business people have started to invest their money in other countries and this has resulted in a situation in which a lot of money has left the governorate. Lastly, the Chamber of Commerce staff explains that “the government does not support the development of the private sector enough to really develop the sector. Moreover, displacement due to the war has caused a lot of entrepreneurs to leave the governorate.” When speaking with host communities, IDPs and refugees, more information about potential growth sectors is revealed. During these interviews, the respondents were asked what kind of products they would like to buy which are not available at the moment. Respondents from Anbar explain that western

1: Agriculture: In Anbar, there is a lot of fertile land that is currently not being used for agriculture. In addition, water is widely available. As such, there exist a lot of opportunities to develop the agricultural sector. Since a lot of agriculture is still being done with traditional techniques, trainings focused on modern agricultural techniques have the potential to increase profits and ensure that the highest yields are gained from farming.

2. Industrial sector: The industrial sector has been destroyed severely, especially the glass factory and the phosphor plant. While this sector has a large opportunity for growth, it would require significant investment to develop this sector.

3. Service sector: To start working in the service sector only requires a small investment and the demand for high quality services is high. Some services that are reported to be in high demand include air-conditioning repair, mobile phone repairs, electricity, plumbers, etc. These sectors can be further developed by providing vocational training and starting kits.

4: Markets: Satisfaction with food and non-ffod products is low in this governorate. in addition, people complain about the unavailability of ceertain food and non-food products. A specific consumer demand survey will need to be conducted in order to analyze which food and non-food products have the highest potential for profit.

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30 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

food products are often unavailable as well as frozen foods and seafood. To get access to these types of food, they need to travel to larger cities and this is expensive for them due to the transportation costs. For non-food items, especially electronic goods of high quality are often unavailable. This is due to the high prices of those goods. In addition, community members complained that when imported goods are available, they are often sold at a price far above their market value because they are often not widely available thus giving the few shops that do offer these goods a monopoly. Lastly, some essential services are also missing in the targeted areas. For example, health care insurance is not available. In Salah ad Din, on the other hand, community members report that most food and non-food products are available, but often at prices that are too high. As such, they do not always have the purchasing power to buy these foods. For services, these are often at affordable prices, but lack quality. Moreover, affordable medical services appear to be unavailable in Salah ad Din.

Satisfaction with food products, non-food products and services is low in both governorates and this provides opportunities for market development. For food products, community members complain about the high prices as well as the fact that they sometimes get sick because of the bad quality of the available foods. For non-food products, a similar sentiment is held. However, for non-food products complaints mostly relate to the fact that a lot of counterfeited products are available at the market. These products are cheap in price but do not fulfill the quality demands of consumers. Finally, services also receive a lot of complaints. Respondents pointed out that services are often of low quality and because there is limited competition, people have to accept the quality of the services being offered. As such, the service sector provides good opportunities for growth. Specific trades that appear high in potential are air-conditioning repair, mobile phone repair, barber/hairdresser, electrician, and motorbike/car repair. 22% (n=53) of respondents own their own business. In Anbar, however, 27% (n=34) of respondents own a business while this percentage is much lower in Salah ad Din (16%, n=19). Moreover, 24% (n=49) of male respondents owned a business in comparison to 9% (n=4) of their female counterparts. Among those who do not own a business, 73% (n=140) would like to own their own business with small differences between the two governorates. The majority of both male (77%, n=118) and female (56%, n=22) respondents who did not own a business, were interested in starting one. As such, it should be concluded that there are barriers that prevent people who want to start a business from actually starting a business.

One of the potential barriers relates to the registration of the company, as this takes time and cost money for business owners. As reported by a staff member from the Chamber of Commerce in Salah ad Din, businesses are obliged to register based on the law. Before the crisis, however, a lot of businesses were not registered. Currently, there are still some businesses that are not registered, but the situation has improved a lot. Based on the interview with

the Chamber of Commerce staff in Salah ad Din, moreover, it only takes 24 hours to register a business

“I started a construction company right after the crisis. I get contracted to build houses, schools and restaurants. In order to get my work done I buy construction materials from local companies. The

prices of these materials are very reasonable in my opinion. Once we buy these inputs, we bring them to a private yard until we need them for the construction of the building. Storing these materials is very

expensive, however. On top of that, there are sometimes delays in the delivery of the materials or delays in the execution of a contract. Because of this, we lose a lot of money. Nevertheless, I am able to make a

good profit. ”

Business Owner – Anbar

“The main barrier I am experiencing that withholds me from starting a business is that I

cannot access capital.”

Returnees – Salah ad Din

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31 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

and the cost are, according to this respondent, 250,000 Iraqi Dinar for the trademark membership and 95,000 Iraqi Dinar per year. “The Chamber of Commerce does everything in their power to facilitate the easy registration of businesses. Despite this, the private sector is not well developed.” Indeed, from qualitative interviews it appears that the registration of businesses is not a major deterrent for aspiring business owners. Figure 28. What entities provide loans to start a business, by governorate (n=252)

A second potential barrier to starting a business is a lack of capital, something that was reported by multiple stakeholders in both governorates. To further analyze this, respondents were asked what types of groups, organizations or banks are offering loans to people who want to start their own business (See: Figure 28 and Figure 29). There is a clear difference between the two governorates. In Anbar, informal means to get loans are more common while formal means to access loans are more common in Salah ad Din. It is interesting, moreover, that a large proportion of respondents in Salah ad Din states that banks are the main source of loans. As such, religious teachings against interest may not play a role for all business owners.

15%

0%

23%

10%

72%

52%

8%

5%

8%

1%

69%

6%

30%

38%

5%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None

Other

Banks

Micro Finance Programmes

From family members

From other community members

VSLAs

NGOs

Salah ad Din Anbar

“If I wanted to start a business, I would need to start with a very small business. This would not require a lot of starting

capital and can help me to generate some money to slowly expand”

Host Community Member – Anbar

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32 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 29. How do most people acquire money to start new businesses, by governorate (n=252)

However, even though there might be options to get loans, it is not easy to access these loans in reality. Only 2% (n=2) of respondents in Anbar and 3% (n=3) in Salah ad Din state that it is very easy to obtain capital to start a business. Moreover, 50% (n=63) of respondents in Anbar and 69% (n=74) of respondents in Salah ad Din state that it is very difficult to obtain capital. Females, moreover, report it to be more difficult for them to obtain capital to start a business, as can be seen in figure 30. Figure 30. How easy is it to obtain capital to start a business, by gender (n=232)

Qualitative interviews confirm these findings. One business owner in Anbar states: “I have no access to loans but I did get a loan from my family in order to start this business.” A business owner in Salah ad Din, moreover, explains: “there is an opportunity to get loans here, but not from banks. You can get them from the community, but it is not at all easy to get these loans.” As previously mentioned, the establishment of Village Saving and Loan Associations could be an effective mechanism to provide those who want to start a business with starting capital for those businesses.

1%

2%

19%

15%

70%

62%

13%

6%

3%

0%

68%

8%

36%

39%

7%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None

Other

Banks

Micro Finance Programmes

From family members

From other community members

VSLAs

NGOs

Salah ad Din Anbar

6%

21%

73%

2%

42%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Very easy

Somewhat easy

Not at all easy

Males Females

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33 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 31. What entities provide loans to maintain a business, by governorate (n=252)

Respondents were also asked what types of groups, organizations or banks are offering loans to people who want to maintain their current business (See: Figure 31 and Figure 32). As for entities providing loans to start a business, there is a clear difference between the two governorates. In Anbar, informal means to get loans are more common while formal means to access loans are more common in Salah ad Din. However, even though there might be options to get loans, it is not easy to access these loans in reality. Only 2% (n=2) of respondents in Anbar and 4% (n=4) in Salah ad Din state that it is very easy to obtain capital to maintain a business. Moreover, 46% (n=52) of respondents in Anbar and 70% (n=73) of respondents in Salah ad Din state that it is very difficult to obtain capital. For the majority of respondents, irrespective of gender, it is just as difficult to obtain capital to maintain a business, as it is to obtain capital to start a business. Despite this, 43% (n=79) of men reported that it was somewhat easy to do so compared to 21% (n=7) of women. Figure 32. How do most people acquire money to maintain a businesses, by governorate (n=252)

14%

0%

22%

11%

72%

53%

5%

4%

5%

0%

68%

3%

34%

40%

3%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None

Other

Banks

Micro Finance Programmes

From family members

From other community members

VSLAs

NGOs

Salah ad Din Anbar

1%

2%

19%

15%

70%

62%

13%

6%

3%

0%

68%

8%

36%

39%

7%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None

Other

Banks

Micro Finance Programmes

From family members

From other community members

VSLAs

NGOs

Salah ad Din Anbar

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34 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 33. What makes a business successful in your community, by governorate (n=120)

Once a business is started, one needs to ensure the business becomes successful. According to respondents, access to capital is the most important factor that makes a business successful in both governorates (See: Figure 33). No differences were found between gender in this regard. This indicates that access to starting capital may not be sufficient, but that new business owners need to have access to capital the entire time, which might be problematic for a large proportion of the aspiring business owners. The second factor that respondents from both governorates consider most important is skilled workers, and this finding is again irrespective of gender. When it comes to the skills needed in a business, the respondents were in agreement that business skills are most important followed by good connections (wasta) (See: Figure 34 and Figure 35). Based on this, it is recommended to ensure all vocational trainings also have lessons that deal with general business skills in order to fully prepare the participants for starting their own business. Figure 34. What skills do you think are most important for a business, by governorate (n=252)

2%

86%

36%

67%

14%

5%

92%

23%

54%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Access to capital

In-demand products or services

Skilled workers

Good transport networks

Salah ad Din Anbar

85%

20%

28%

8%

34%

48%

89%

9%

13%

0%

19%

33%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Business Skills

Language skills

Literacy

Numeracy

Trade skills in my profession

Connections

Salah ad Din Anbar

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35 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

Figure 35. What skills do you think are most important for a business, by gender (n=252)

Then respondents were asked whether there are any trade associations in their community. In Anbar, 23% (n=26) of respondents are aware of formal or informal trade associations or cooperatives. In Salah ad Din, on the other hand, only 8% (n=9) of respondents are aware of such trade associations or cooperatives. Next, respondents were asked what kind of services those associations offer, the result of which can be found in the figure 34 below. In Anbar, the associations seem to be mostly focused on providing facilitation support as well as technical support. In Salah ad Din, on the other hand, the associations are much more well-known for providing financial support. For future activities, it is recommended to explore options to further develop business associations at the governorate level to ensure that starting businesses are provided with sufficient support to ensure their business becomes successful

Figure 36. What kind of support are trade associations providing, by governorate (n=35)

81%

12%

14%

5%

12%

30%

88%

16%

22%

4%

30%

43%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Business Skills

Language skills

Literacy

Numeracy

Trade skills in my profession

Connections

Males Females

4%

18%

58%

46%

0%

78%

0%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

No services

Financial assistance

Technical assistance

Facilitation (permissions, licenses, etc.)

Salah ad Din Anbar

“My company provides services to households. These services include internet installation, camera installation and computer maintenance and repair. Before I started this business, I worked in a number of private companies and received a lot of training. These trainings have helped me a lot in my current business but I know that they were very expensive. I buy my inputs from other companies and usually I find the prices to be very high. I display the devices I buy in my store so that customers can buy them.

Then I help them with the installation of the device. It is difficult for me to run this business because my customers do not have a lot of money and therefore want to buy very cheap devices. However, some of

the very cheap devices they buy are not suitable for installation and this is hard to explain them. ”

Business Owner – Anbar

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36 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

“I own a company that sells a variety of different products, including air coolers, tanks, and baking equipment. In order to develop these products, I buy inputs, including iron, from Baghdad. These inputs are exported from other countries. However, they are expensive and the quality is low. Nevertheless, we are able to develop a high quality end-product and sells this for a cheap price. As such, we are selling a

lot. In the future, I would like to see the Ministry of Industry and Minerals help us get access to good quality inputs from Baghdad or elsewhere. ”

Business Owner – Salah ad Din

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37 Labour Market Assessment in Salah ad Din and Anbar Governorates, Iraq – February 2019

5. Recommendations Based on this labour market assessment, the following recommendations are made: • Establish relationships with universities and the private sector to help them develop apprenticeship

programmes for fresh graduates. Those programmes should be at least 12 months in length and provide graduates with hands-on practical experience that they can leverage during job interviews.

• It is recommended to look into the development of informal savings groups, especially in Salah ad Din. A VSLA is a group of people who save as a group and take small loans from those savings. After one year, the accumulated savings and the loan profits are distributed back to members. Savings are maintained in a loan fund from which members can borrow in small amounts, only up to three times their individual savings.

• Vocational training programmes should be developed. These programmes should either be focused on starting a business or partnerships should be established with the private sector to ensure that those who participate in the training have opportunities to find employment or do internships to gain experience. If the aim of the vocational training is to ensure participants can start their own business, it should be considered to only provide trainings for which minimal starting capital is needed or to provide starting kits. When providing starting kit, however, it is important to take measures to ensure those kits are not being sold or left unused. For example, one can provide the starting kit against payment to increase ownership among the beneficiaries. Secondly, and this might be the more preferred option, one can opt to give larger starting kits to groups of participants. The participants can then work together in a larger business and control mechanisms can be put in place to ensure each one of the participants fulfills his duties in the business. A couple of potential training topics that could be considered are:

o Air-conditioning repair o Mobile phone repair o Barber/hairdresser o Electrician o Motorbike/car repair o Restaurant o Agriculture o Construction o Other service providing businesses

• Vocational trainings should always include lessons geared at general business skills in order to ensure participants are fully prepared to start their own business. In addition, one could consider providing business coaching to people who just started their business in order to ensure they receive sufficient guidance to make their business successful.

• Establish business associations that provide technical support to business owners as well as support for accessing loans.

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Annex 1: Methodology

Research Design In order to best address the objectives of the assessments, Forcier conducted the following mixed methodological approach: a thorough desk review of available secondary literature and project documents; quantitative survey and; qualitative interviews. By means of such a mixed-methods approach, Forcier was able to provide a deep understanding of the communities’ context and detail recommendations for the design and implementation of the project. The table below provides an overview of which data collection tools was used for this research. Table 1. Methodology

Method Source/Respondents Quantity Quantitative Survey Anbar & Salah ad Din

• 132 Anbar • 120 Salah ad Din

252

Key Informant Interviews (KIIs)

Anbar & Salah ad Din • Local chambers of commerce • Local government officials • Financial institutions • VT Centre staff • Representatives of companies in identified industries

10 KIIs

Focus Group Discussions (FGDs)

Anbar & Salah ad Din • Refugees, returnees, and host community members

4 FGDs

Research Methods Desk Review Forcier’s Project Manager conducted a comprehensive desk review prior to data collection as a means to develop context for the project. Information gathered from the relevant secondary literature and project documents informed the drafting of the interview questionnaires, data analysis, and the writing of the final report. Quantitative Data Collection For this study quantitative data was collected using the SES. The surveys were collection by two teams comprising of a Team Supervisor and six Enumerators. The surveys provided comprehensive data on the available livelihood opportunities and the demand for and availability of skills in the communities. All enumerators received comprehensive training from the Team Supervisors prior to data collection. Before data was collected, all quantitative survey questionnaires were programmed by the Lead Evaluator into an online server, from where it was transferred to mobile devices using wireless connection through data-collection software (ONA). These mobile devices were then given to each team of enumerators for fieldwork. Data was processed and cleaned by the Lead Evaluator, and was stored in a secure Forcier database. Qualitative Data Collection To supplement the quantitative data, Forcier conducted two different types of qualitative interviews: interviews with key informants (Chamber of Commerce, Ministry representatives and vocational training center managers) and focus groups discussions (female, male and disabled youth).

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Forcier Consulting Forcier is a development research firm that operates in challenging post-conflict environments. Established in 2011 in South Sudan, Forcier has invested in developing methodologies and approaches to research that are contextually appropriate and feasible, whilst adhering to international standards for social science research and utilizing the latest data collection technology available. Our core services include population and social science research, project evaluations, market assessments for livelihoods and vocational trainings, private sector and market research for feasibility studies, strategic planning and representation, and training and capacity building workshops. For further information, please visit www.forcierconsulting.com.