Question

why is pure iron not used for making permanent magnets​

Answer 1

They are not used because the get rusted easily (oxide layer is formed on the iron) so they are not used to make magnets.

Hope You understand the answer

Answer 2

because the retentivity of pure iron, i.e the abillity to retain the magnetic field induced.

an alloy of alluminium and iron is used for making pernmanet magnets

they are used in small motors and some watches.