Saudi Arabia: Government needs to tackle unemployment among youth

Recently published statistics point to the rising problem of unemployment in Saudi Arabia. According to the Ministry of Economy and Planning, the jobless rate among Saudis stood at 11.2 per cent in the first half of 2007.

The figure compares unfavourably with a reported unemployment rate of 11 per cent in the first half of 2006.

The number of Saudis without jobs stood at 453,994 in the first half of 2007, up by some 8,796 compared to the corresponding period in 2006.

In fact, the opposite should have been true in the light of improved economic conditions, thanks to rocketing oil prices. The petroleum sector accounts for more than three quarters of the budgetary revenue, and thus plays a primary role in the country's economic activities. Saudi Arabia's real (adjusted for inflation) gross domestic product (GDP) grew 3.5 per cent in 2007. The kingdom saw an inflation rate of 6.5 per cent last year.

Statistics released by the ministry suggest worsening employment prospects for women. The jobless rate among women has increased from 24.7 per cent in the first half of 2006 to 26.6 per cent in the same period in 2007. Conversely, the unemployment rate among males continued to hover around eight per cent during the same period.

Still, men and women between the ages of 20 and 24 account for 44 per cent of jobless nationals.
Undoubtedly, the Saudi economy loses the contribution of an active age group. Needless to say, unemployment among the youth poses a threat to public order. Terror organisations look for recruits among youths suffering from social problems and neglect.

The latest jobless figures make the prospects of achieving manpower goals of the 8th Development Plan only more difficult. The plan envisages some 139,000 job seekers by 2009 versus 268,000 Saudis looking for employment opportunities in 2004. In fact, the plan expects the Saudi unemployment rate to drop from seven per cent in 2004 to merely 2.8 per cent by 2009.

Likewise, it would be extraordinarily difficult to achieve the Eighth Development Plan forecasts with regards to contribution of females in the workforce. The plan envisages females representing 17.9 per cent of Saudi national workforce by 2009 versus 12.2 per cent in 2004.
At stake is not creating enough employment opportunities per se, but rather the right jobs for Saudi nationals. Saudis do not just desire any kind of jobs. They do not want low-paying menial jobs.

One plan for tackling unemployment proposes restricting certain jobs for nationals. The Ministry of Labour and Social Affairs restricts some 40 kinds of jobs to locals. 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 say that Saudi nationals prefer such professions.

Undoubtedly, the government cannot overlook the employment problem. For one, it is believed that extremist groups often find recruits among the jobless. Also, some 38 per cent of Saudis are below the age of 14 and hence expected to enter the job market soon. The authorities have an opportunity to make maximum benefits of outstanding economic conditions to address the problem. Suffice to say, the budget recorded surplus of $47 billion in fiscal year 2007.

- Written byDr. Jasim Ali, a member of parliament, Bahrain, for Gulf News