Much to their credit, Saudi authorities are exploring fresh ideas to address the unemployment challenge. Undoubtedly, Saudi officials could not overlook the fact that unemployed nationals are playing a role in on-going protests in both Bahrain and Oman.
The latest move calls for enhancing employment of nationals in the retail sector, a key source of employment in the economy. Saudi nationals occupied 270,000 positions in the retail sector in 2010. It is projected that the number of available jobs in the sector could double to 2 million by 2020.
Suggested ideas to augmentg employment of Saudis in the sector are realistic by virtue of focusing on training jobseekers and increasing the cost of employing foreign workers. This approach basically resembles what is now in place in Bahrain, namely raising fees on firms employing foreign workers and using the proceeds to train and rehabilitate nationals.
In fact, increasing the share of nationals to just half of employment opportunities in the sector by the target date would largely contain the unemployment challenge.
Available official statistics put the number of Saudi jobless at 448,547 in August 2009, up from 416,350 in the same period in 2008.
The disturbing trend raises the unemployment rate amongst nationals actively seeking jobs from 10 per cent to 10.5 per cent. Nevertheless, the figure remains lower than that of 11 per cent recorded in 2007.
Problem
To be fair, Saudi Arabia stands out within the Gulf Cooperation Council (GCC) not only in admitting existence of the unemployment problem, but in providing details.
Not surprisingly, unemployment is widespread amongst females in conservative Saudi Arabia. More specifically, the statistics put jobless rates amongst females and males at 28.4 per cent and 6.9 per cent, respectively. Also, it is believed that unemployment is more of a problem in rural areas in the vast kingdom.
Ostensibly, the latest jobless figures make the prospects of achieving manpower goals difficult if not impossible. The eighth five-year plan envisaged some 139,000 job seekers by 2009 versus 268,000 Saudi nationals looking for employment opportunities in 2004. In fact, the plan called for the Saudi unemployment rate dropping from 7 per cent in 2004 to merely 2.8 per cent by 2009.
Aware of the challenge, the ninth development plan covering the period 2010 to 2014 calls for reducing jobless rate from 9.6 per cent in 2009 to 5.5 per cent by end-2014. In order to show seriousness, the authorities allocated half of the spending package for the new plan to human resources development.
Demographics
In reality, demographic facts add to jobless pressures, with some 29 per cent of the population being below 15 years of age. Certainly, a large number of youths would enter the job market in the years to come looking for employment opportunities suiting their expectations in terms of pay, work environment and career development.
To this end, the Ministry of Labour and Social Affairs already restricts some 40 types of jobs to nationals. These include taxi drivers, training and purchasing managers, public relations officers, administrative assistants, secretaries, operators, debt collectors, customer service accountants, tellers, postmen, data handlers, librarians, booksellers, ticket kiosk keepers, auto salesmen, janitors, internal mail handlers and tour guides.
Officials believe Saudis prefer such professions, but such restrictions are not necessarily popular with the business community, in turn considered as interference in the way of making decisions. Yet, the employers would definitely welcome the option of trained Saudi nationals, equipped with necessary skills, able to appreciate business.
Thge writer is a Member of Parliament in Bahrain.
