Youth unemployment has assumed alarming proportions in Arab countries and with untold consequences. The worrying development has repercussions for the Gulf economies too.

Arab nations look up to the Gulf to provide job opportunities and economic assistance for them. This is a challenge by itself and reflects the rising unemployment among locals in half of the six Gulf states.

Frustrations about the socioeconomic challenges — notably youth unemployment — contributed to the Arab Spring wakening, starting with Tunisia in late 2010 and then sweeping Egypt from January 2011. The uprising had its genesis in sociopolitical reforms but spread over socioeconomic challenges.

Latest stats point to disturbing joblessness trends, something on display during the 42nd meeting of Arab Labor Organisation in Kuwait last week. According to the Director-General of the Arab Labour Organisation, Ahmad Luqman, the number of Arabs without jobs has risen by 2 million since 2011.

The date is notable as it coincides with the emergence of Arab Spring. Ironically, the movement was meant to contribute towards solving rather than further complicating the socioeconomic challenges.

Additional joblessness raises the number of unemployed Arabs to 20 million as of 2014. This puts the jobless rate in all Arab countries at 17 per cent.

These realities uncover other issues related to labour and populations in Arab countries. The figures suggest that the total workforce in Arab countries stands at around 118 million out of a combined population of 368 million.

Accordingly, the labour participation rate is one-third of the total population. Clearly, this reflects the fact that Arab countries have a sizeable youth population. Trouble is that the future looks bleak as many more Arab youths enter the job market looking for employment opportunities that meet their expectations.

It was revealed during the Kuwait summit that the jobless rate stands around 30 per cent among Arab youths, considerably higher than the average.

Still, there is the issue of underemployment in many Arab countries, as some graduates tend to accept employment not commensurate with their qualifications. Some find themselves without choice but to accept relatively inferior job opportunities if only on a temporary basis.

Arabs comprise 5.2 per cent of the total population in the world, currently estimated at 7 billion. One projection has the Arab population reaching as high as 500 million by 2025 reflecting steady growth rates.

Real unemployment

The Arab League comprises 22 members including Palestine, but the above mentioned unemployment stats exclude the Palestinian territories due to lack of reliable information. Hence the real unemployment should be higher.

Undoubtedly, Arab countries face different economic realities, hence the rising jobless numbers. These range between 50 per cent in Djibouti and 0.6 per cent in Qatar. The rates are relatively high in several other Arab countries including Egypt.

Initiatives by UAE-based entities to develop a new administrative capital in Cairo and numerous residential projects throughout Egypt could create 1 million job opportunities in the country. These schemes were unveiled during a special gathering at Sharm Al Shaikh to deal with what the future holds for the Egyptian economy.

Within the GCC, unemployment is a challenge in Oman, Bahrain and Saudi Arabia. A report places jobless rates at 8.1, 7.4 and 5.6 per cent, respectively.

The unemployment situation cannot be overlooked and requires constant attention from officials at all times.

 

The writer is a Member of Parliament in Bahrain.