Bahrain takes steps to curb unemployment among its citizens

Bahrain is taking steps to tackle its unemployment problem and has brought down its jobless rate from 16 per cent to 3.6 per cent in the past five years. Minister of Labour Dr Majeed Al Alawi told Gulf News and gives an insight about the national plan.

Gulf News: Bahrain has been trying different policies to tackle its unemployment problem in the past five years. Can you explain the national plan implemented in 2005 and how do you rate its success?

Dr Majeed Al Alawi: Since 2001, Bahrain started to discuss policies aimed at reducing unemployment among its citizens. Over the past five years, I managed along with my colleagues in the ministry to reduce the unemployment rate from 16 per cent to 3.6 per cent. The key project was the establishment of the Unemployment Insurance System (UIS), which is unique in the Arab world.

The system allows unemployed citizens, who are registered with the ministry, to receive a financial assistance for six months based on their qualification and experience. During the period, they will have to look for a job with the help of the ministry and in some cases they would join a training programme.

Unless they resigned or were fired for reasons of violating job ethics, Bahraini employees are entitled to financial assistance for losing their job because of reasons beyond their control. The unemployment assistance in this case would be equal to 60 per cent of their last received salary in the last job they worked. The fund of the UIS is financed through contributions from Bahraini employees and employers.

The result of the programme was quite significant. We managed to reduce unemployment among nearly 20,000 citizens to 7,200 job seekers.

The balance of 12,800 who found employment through the programme in addition to those who entered the job market during the past four years, have been offered jobs in the private sector. This indicates the success of the programme.

The main advantage of the programme is that it addresses the unemployment problem whilst saving the dignity of citizens. The system offers policy makers an indicator of the level of unemployment in the country.

Are you considering some other steps to increase the employment of nationals in the private sector?

In addition to the USI, the government has established a training centre that offers a variety of programmes. The investment in the centre has paid off very well. It helped thousands of Bahraini workers looking for jobs in the private sector to become productive employees from the first day of their recruitment.

Our next step will be at the beginning of the next year with the launch of the Labour Market Regulatory Authority's (LMRA) new mission, taking charge of work permits and visas of expatriate workers. The authority will start that job in January 2008. All companies will have to be registered by LMRA. The authority will handle the transfer of expatriate workers from one sponsor to another as well as the renewal of their sponsorship and termination processes.

It is a step forward in our plan to eliminate the sponsorship system. The ultimate goal is to see LMRA fully in charge of foreign workers in the country. We need to make sure that no foreigner will be recruited if there is an unemployed Bahraini who can fill the same position.

What about foreign workers? What are their rights under your plan?

The labour law in Bahrain is quite generous towards foreign workers. In addition to the law, Bahrain has allowed the establishment of several NGOs to look after the interests of foreign workers in the country.

The support Bahrain offers to foreign workers stems from our deep belief that workers have every right to live decently while staying in our country.

The mid-day break for workers in the summer season was one of the benefits given to foreign workers and we are looking for more.