Iraq's Planning and Development Cooperation Ministry announced plans on Tuesday to create 4 million jobs over the next four years.
Unemployment rates in Iraq hit 15% in 2010 with some provinces up to 37%, according to statistics released by the ministry.
AKnews reports that oil-rich Iraq also has 30% of its people living in poverty.
Abdul Zahra al-Hindawi, the spokesman of the ministry, told the agency that the Iraqi government "will provide the jobs... by implementing service projects which provide opportunities for unemployed youth"
"The provision of employment opportunities will reduce the poverty rate in Iraq from 30% to 16%."
The announced plans are part of a "strategic Plan" to combat poverty in Iraq which was announced in January 2010 by the Planning Ministry, which will last until 2014.
But the main issue of an economic stability is the security situation in the war-torn country. Insurgents have intensified their attacks on the Iraqi security institutions and civilians.