Unemployment gravest challenge before the Saudi Government

Riyadh: Saudi economists say unemployment among Saudi youths of both sexes is the most grave issue facing the Saudi government.

The economists, contacted by Gulf News for comment on the rising unemployment rate, were unanimous in their view.

The issue figured prominently in the 17th annual meeting of the governors of the Kingdom's 13 provinces. The meeting was held under Prince Naif, second deputy premier and minister of the interior. The meeting concluded in Makkah Wednesday.

Speaking at a press conference, the prince said it was not possible for any government, whether in Saudi Arabia or beyond, to employ all of its young men and women.

"However, all job opportunities available at the government sectors should be given to the Saudi youths," he said.

Prince Naif said he had asked the ministry of civil service to co-ordinate with the ministry of higher education and other relevant government bodies to find job opportunities for university graduates.

"The public sector and the chambers of commerce and industry should also help in finding job opportunities for Saudi youths in the private sector," he said.

Hundreds of Saudi university graduates recently demonstrated outside the ministry of education to demand job opportunities. Demonstrations are extremely rare in Saudi Arabia.

Dr Abdullah Al Salim, professor of economics at King Abdul Aziz University, said the government had initiated the "Saudi-isation" program in 1994, to appoint Saudis in place of foreigners.

"The program was aimed at obliging the private sector to appoint more Saudis but the companies were able, through devious ways, to jump over it," he said.

He also said the government's reforms in education were being resisted by the fanatic scholars who wanted more focus to be placed on religious subjects.

Economics expert Dr Ehsan Abu Hilaiga said the increase in unemployment had been caused by the appointment of foreigners in the government and private jobs.

He said foreign manpower with high qualifications represented 25 per cent of all the recruits, while foreigners with medium skills represented 63 per cent. It added up to a total of jobs for 2.2 million foreigners.

A recent study revealed that only 92,000 Saudi females were working in the city of Riyadh, representing just seven per cent of the capital city’s workforce of 964,000.

The Saudi Labor Ministry insisted that unemployment in the country did not result from the national economy’s failure to provide job opportunities, but from reasons including incompatibility between the market needs and university studies.

The ministry said the dependability of the private sector on foreign manpower was another reason for the rise of unemployment among Saudis.