Iraq companies positive about job growth, report says

• Survey of 5,000 businesses in Iraq
• 32% expect to hire
• Only 6% say they will make job cuts

Almost a third of Iraq-based businesses plan to hire more staff this year to capitalise on opportunities, a survey shows, with the majority of respondents expecting to either grow or maintain their workforces. 

Thirty-two percent of respondents said they expect their companies to increase hiring, up from 30 percent in 2025, while 34 percent were undecided, according to the latest annual employment outlook from Iraqi recruiter Mselect.

Only 6 percent said they anticipate workforce reductions, according to the study, which is in its 14th year. 

The survey used a sample of 5,000 companies based or operating in Iraq, not derived from Mselect’s client base, the company said. It was conducted in the first two weeks of January. 

Almost 70 percent of respondents plan to expand their businesses this year, as Iraq continues to diversify its economy and open up to foreign companies. 

The sectors that most anticipate expansion are industrial, IT and multi-sector groups. Respondents cited currency fluctuations, changing tax requirements, banking restrictions and skills shortages as the primary financial and operational challenges affecting organisations this year. 

The International Monetary Fund projected Iraq’s GDP to grow by 3 percent in 2025 but downgraded its forecast for 2026 to 1.4 percent due to lower oil prices and rising debt. 

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Meanwhile, turmoil in Iran is impacting business sentiment in Iraq and complicating the process of forming a coalition government. 

“[The survey] highlights a labour market balancing growth ambitions with ongoing uncertainty,” Mselect said. 

Respondents in central and southern Iraq, where economic activity and project execution remain strongest, report higher hiring expectations compared with the north, it added. 

There is growing emphasis on developing local talent rather than relying on overseas recruitment, said Fay Jaffar, deputy chief executive of Al Majal Human Resources, part of Basra’s Al Majal Group. 

“Companies across multiple sectors are expanding their operations in Iraq,” she said. “As demand for skilled labour rises this has exposed noticeable skills gaps, creating significant opportunities to invest in long-term capacity building.”