Iraq’s unemployment rate declined to 13 percent after the government introduced economic reforms and expanded support for domestic industries. The Ministry of Planning announced the new figures on Sunday, highlighting a noticeable improvement compared with previous years.
Officials said the unemployment rate previously stood at 16.5 percent before falling during 2025. Authorities linked the decline to several government programs designed to create jobs and stimulate industrial growth across different sectors.
The announcement came during Iraq’s first scientific conference focused on unemployment and poverty challenges. As well as, Ministry spokesperson Abdul-Zahra al-Hindawi said support for local industries helped generate thousands of employment opportunities nationwide.
Government officials identified the pharmaceutical, cement, and food sectors as key contributors to job creation. Authorities increased support for domestic production in those industries to strengthen local manufacturing and reduce dependence on imports.
The Iraqi unemployment rate also improved as the government pushed for broader economic diversification. In addition, Officials said Iraq aims to move beyond heavy dependence on oil revenues by building a stronger knowledge-based economy.
The Ministry of Planning emphasized the importance of matching education with labor market demands. Authorities believe educational reforms can help prepare graduates for both public and private sector employment opportunities.
Government agencies also plan to expand partnerships with universities and training institutions. Officials want to improve vocational education and encourage entrepreneurship among young Iraqis entering the labor market.
The reform strategy includes fast-track public works programs aimed at creating immediate jobs for vulnerable groups and unemployed youth. Authorities said infrastructure projects and development initiatives could provide additional employment opportunities across several provinces.
The Iraqi unemployment rate remains closely tied to demographic growth and economic stability. Ministry data showed that 60.4 percent of Iraq’s population now falls within working age categories, increasing pressure on the labor market.
Officials stressed that long-term success depends on maintaining a stable investment climate and supporting private businesses. The government continues encouraging investment projects and expanding financial support for small and medium-sized enterprises.
Economic analysts welcomed the latest figures but noted that Iraq still faces employment challenges in several sectors. Experts believe sustainable job growth will require continued reforms, stronger private sector participation, and improved investment conditions throughout the country.