The effect of public spending on unemployment rates in Iraq for the period 2003-2017

Abstract

Abstract Unemployment is one of the major problems that most countries suffer from, whether developed or developing, including Iraq, and it is imperative to find ways to eliminate or reduce the negative effects of unemployment and one of the most important of these methods is the spending policy, as the research aims to clarify the relationship between public spending and unemployment rates In Iraq for the period 2003-2017, the research included three topics, the first of which was concerned with the theoretical aspect of public spending, while the second topic dealt with the problem of unemployment in terms of its definition, concept, causes, and proposals for solving this problem. Linear regression model to demonstrate this, and the results showed a significant relationship between public spending and unemployment rates in Iraq, but in spite of that, it was not able to reduce unemployment rates, as well as the high importance of consumer spending in relation to investment spending significantly, as it turned out that the Iraqi economy is suffering From disguised unemployment, as the estimates of the International Labor Organization indicate the unemployment rate in Iraq between a quarter and a third of the population, and other estimates indicate a It is more than half, and among the important recommendations that resulted from this research is to work actively to diversify sources of revenue and not be limited to the oil sector, as well as to encourage domestic and foreign investments to contribute to attracting employment, as well as the need to rationalize public spending and balance between the consumption and investment sides.