Executive Summary
The economic risks created by years of conflict against Iraq remain, and the continued COVID-19 pandemic and months of political turmoil has had a significant impact on the economic situation especially in Duhok, directly affecting people and the market in both Duhok and Sumel districts.
Family income is irregular and uncertain and people often resort to negative coping mechanisms. Despite a rising unemployment rate, there are still shortages and a high demand for skilled labours in the market in both locations. The key barrier to joining the workforce or starting a business is a lack of skills, combined with weak collaboration between vocational service providers and market actors. The current technical skills training and vocational trainings do not correspond to the true needs of the market. Graduates of vocational training lack knowledge on soft skills in the form of communication and language skills, negotiation skills, or the ability to work effectively in a team environment.
Local businesses enterprises and entrepreneurs have a strong willingness to cooperate with training centres and stakeholders including INGOs to reduce market-training gaps and contribute more towards skills development.
Start-up business enterprises and entrepreneurs’ initiatives are limited by the necessity to obtain large sums of start-up capital, expensive business sites, a general lack of entrepreneurial skills, and access to necessary support services and advice.
Youth, women’s and those with disabilities access to income generation opportunities and services is not adequate. Women are burdened by family responsibilities, tradition, and prevailing social norms. Their engagement typically takes the form of self-employment (e. g. sewing, sweetmeat preparation, beauty parlours), and their ability to contribute to income generation activities is either limited as a result of household responsibilities, or only possible when employers support workplace flexibility to accommodate these responsibilities. This is more visible among refugees and IDPs than the host communities.
The objective of this Labour Market and Entrepreneurship Opportunities Assessment is to understand the opportunities informed by current market trends and analysis in trade, small business, vocational skills, business support and existing capacity/skill sets of youth in Duhok.
The goal of the Labour Market and Entrepreneurship Opportunities Assessment is to identify the most promising business sectors for income generation, and those with high potential for employment or self-employment. The assessment was conducted by MSELECT on behalf of SC to establish the foundations for a proposed livelihoods program. SC plans to implement a program that responds to the key findings and recommendations of this assessment, through provision of evidence-based and market-driven insights into market demand, and exploration of current opportunities that address the key challenges identified in the assessment