This book focuses on the critical role of employment and creation of decent work in facilitating peace in Iraq. It argues that reducing the high degree of unemployment could contribute to peace and stability in the lives of people, communities and the country. Iraq’s difficult transition process is compounded because of the problematic labour market situation which continues to be a source of grievance and social unrest. Unemployment, especially amongst the young and dislocated workers, feeds the conflict cycle, and in consequence further hampers reconstruction, investment and the creation of jobs. This book is based on an analysis of the labour market situation and outlines a set of policy measures needed – as far as security conditions allow – first to tackle the immediate problem of a very high level of unemployment and then to ensure that economic growth leads to productive, remunerative and decent employment. This requires that the ongoing reconstruction programme create the greatest number of jobs possible. In the medium and long run the goal should be the setting up of a well functioning, efficient, equitable and rights-based labour market which will ensure that the economy moves towards and maintains a high level of employment and creation of decent jobs. The book also argues that careful consideration should be given to the sequencing of reforms and to put in place appropriate safety nets and an affordable system of social protection. The employment consequences of reform need to be considered in the wider context of tackling massive unemployment. In the medium term, the reform process must be developed in a way that leads to more and better employment opportunities in the private sector.