Shafaq News
Iraq’s labor market is undergoing a quiet transformation—driven not by
government initiatives or corporate investments, but by the individual choices
of women, students, and young professionals.
Across Baghdad and other cities, home-based ventures are multiplying,
while a parallel trend—dubbed “digital migration”—allows skilled workers to
sell their expertise abroad without leaving the country. Together, these shifts
are redefining how Iraqis view work, income, and professional identity, moving
away from rigid, formal employment toward flexible, technology-driven
livelihoods.
The change has been years in the making, but accelerated after the
COVID-19 pandemic forced Iraqis to seek income during lockdowns and economic
uncertainty. By late 2024, internet penetration had risen to nearly 83% of the
population, compared to just 44% in 2019. Expanded connectivity opened doors to
global marketplaces, social media commerce, and remote job platforms—creating a
new layer of economic activity unimaginable a decade ago.
For many, these platforms are more than a convenience—they are a
survival strategy. They bypass the gatekeepers of traditional employment and
allow direct access to customers or employers, offering autonomy in a labor
market where options have long been constrained.
Women and youth, historically sidelined in Iraq’s formal economy, are at
the forefront. Female labor-force participation remains among the lowest
globally—just over 10%—while youth unemployment pushes students and graduates
toward part-time, flexible arrangements they can balance with studies or
caregiving duties.
Farah Ahmed, a 30-year-old lawyer, spent years navigating Baghdad’s
courtrooms for clients, often returning home without work. “I would wait for
long hours… and often return without any work,” she recalled. Frustrated, she
turned to online commerce, launching a small clothing business on TikTok with
her husband’s support. Daily livestream sales now generate a steadier income,
though she still offers legal services to friends and acquaintances. The work
comes with its own hurdles—fraudulent orders, prank buyers, and sudden
cancellations—but it gives her greater control over her time and earnings.
Students are also carving out niches in the informal online economy.
Saja Alwan, 19, a Fine Arts Institute student, began offering fitness coaching
and diet plans on social media after completing online training courses. The
work allows her to finance her studies without disrupting them, though she
faces challenges such as late payments, unrealistic client expectations, and
the constant need for self-promotion.
At the higher end of the skills spectrum, improved broadband and
remote-work platforms have expanded “digital migration,” enabling Iraqis to
work for foreign employers from home. University of Technology graduate Hassan
Farouq left a local telecom job with low pay and poor treatment to join a
foreign software company, earning in dollars and avoiding long commutes.
Engineer Hassan Mustafa had a similar experience, citing higher pay,
professional respect, and better work-life balance from his role with an international
firm that deposits his salary into a local bank.
Read more: Iraq’s internet use surges to 82.9% by end of 2024
Legally, Iraq has had the framework for e-commerce for over a decade.
The 2012 Electronic Signature and Electronic Transactions Law recognizes
digital contracts, while the 2010 Consumer Protection Law outlines rights for
buyers and sellers. But enforcement remains weak—e-signature certification is
inconsistent, dispute resolution is underdeveloped, and existing consumer
protections do not fit the fast-paced, cross-platform nature of livestream
selling.
To address these gaps, the government introduced E-Commerce Regulation
No. 4 in 2025, aiming to license online businesses, mandate clear disclosures,
and create compliance mechanisms. The challenge now lies in fair enforcement
and ensuring that small sellers can register without being buried in
bureaucracy.
Read more: Internet in Iraq: Snail-speed service, high costs, and digital divide
Economists note that these micro-enterprises absorb unemployment and
broaden participation in the economy, especially for women and youth. Yet,
because most remain unregistered, they contribute little to tax revenue.
Policymakers face the task of integrating these businesses into the formal
economy without deterring participation—through simplified registration, tax
exemptions for low turnover, and microcredit linked to formalization.
According to digital business consultant Mohammad Awada, in the
remote-work sector, clearer recognition of freelance contracts and banking
reforms to facilitate foreign currency payments could help turn digital
migration into taxable, sustainable income.
“While the government continues to expand broadband infrastructure,
partnerships with civil society, universities, and business chambers could
provide digital-literacy training in pricing, record-keeping, dispute handling,
and fraud prevention. International bodies like UN Women and the ILO could
bolster this shift with micro-grants and targeted training for women and
youth,” he told Shafaq News.
If embraced, Awada argued that this transformation could yield a more
dynamic small-business sector, higher household incomes, and greater inclusion
in Iraq’s labor market. If neglected, it risks remaining fragile—dependent on
global platforms, vulnerable to fraud, and invisible to policymakers.
As Hassan Mustafa put it, “The virtual world is more real than we
imagine.”
Written and edited by Shafaq News staff.
