Analysis of the Effect of Public Spending on the Unemployment Index in Iraq for the Period (2004-2021)

Abstract

The research aims to try to analyze the reality of public spending, in both its consumption and investment parts, and the phenomenon of unemployment in Iraq, and to know its causes during the period (2004-2021), and then to demonstrate the effect of public spending on the unemployment rate in Iraq by relying on the analytical method first, and then following a standard approach for the purpose of measuring the effect of the independent variables, which included (public spending, consumer spending and investment spending) on the dependent variable (unemployment rate).

The research concluded that the average percentage of the consumer contribution and investment spending from public spending in Iraq, in which the control of consumer spending is 80%, while the percentage of investment spending was only 20%, and that the problem of unemployment in Iraq came as a result of the slowness of the economic system and the inability to achieve its goals, especially with regard to advanced economic growth rates, and in the pattern of economic growth based on oil extraction.

The research concluded with a number of recommendations, perhaps the most important of which are: The Iraqi government should follow a policy of correcting the structure of public spending by reducing the level of consumption spending and raising the level of investment spending, which contributes to increasing production and productivity, which is reflected in an increase in the level of job opportunities, and follow the policy of productivity alimony, as well as the Iraqi government enacts laws that support the private sector, as well as providing financial and moral support to investors, which contributes to raising the level of investment in the private sector and provides more job opportunities in it.