Foreign Companies to be 'Encouraged' to Hire Locals

The Iraqi government is to provide financial incentives for foreign companies to hire Iraqi workers, according to AKnews.

The parliamentary committee for labor and services decided to reduce taxes and other 'not specified obligations' towards the Iraqi government, as well as to provide facilities to these companies.

"The foreign companies can rely on their skilled workers in the technical and engineering affairs, but it is unacceptable for foreign [conpanies] to bring in foreign workers that do not require skill and can be accomplished by Iraqi workers," Yunadim Kanna, chairman of the committee, said.

It remained unclear if that decision is backed by the majority of the parliament or by the Iraqi government, and therefore it is not clear if it will ever become law.

The unemployment rate in Iraq is 16 percent, meaning four million Iraqis are out out of work, according to the Ministry of Labour.

These figures do not reveal the extent of the problem as they do not record underemployment - where people cannot find enough work to support themselves.

According to this report, Iraq decided in May to deport foreign workers, especially Asians, but the decision has not yet been put into effect.

(Source: AKnews)

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