GCC jobs outnumber local working population: report
Report includes nationals between 15 & 64 years in age
The Gulf Cooperation Council (GCC) countries have twice as many jobs than the number of their nationals aged between 15 and 64, according to a Citi report published by Emirates Business 24/7 on Thursday.
“Official statistics show that there are many more jobs available in each of the six GCC countries than there are nationals of working age,” Farouk Soussa, Middle East Chief Economist, Citi, said in a report.
“Although this varies from country to country, there are just enough jobs in Oman for the entire working-age population, but over 10 jobs per person in Qatar. In principle, full employment should, in all cases, be the norm,” Soussa added.
But less than 50 percent of Bahrainis, Saudis and Omanis of working age are officially employed, and this number is only just over 60 percent for the three other GCC countries, the report said.
It is not ‘lack’ of jobs that pose a problem in the GCC region, but the “unsuitability of the jobs for large portions of the local population the keep them out of work.”
While appropriate skills are necessary, but it is insufficient condition to improve the labor market participation the GCC.
According to the report, there needs to be a comprehensive overhaul of labor policies to raise the standard of pay and working conditions for all workers, and to create a competitive and flexible private sector labor market, and reduce the disincentives for employers to hire locals by raising the cost of foreign labor.
The report also advised to reduce the inherent advantages of working in the public sector vis-à-vis the private sector.
On January Saudi Arabia’s labour minister said that the kingdom must create five million jobs by 2030 if it is to meet the needs of young Saudi men who will mature in to the job market by then.
He said if new jobs are not created, the country would face mass unemployment and salaries would decrease as the competition for jobs heated up.
The Citi report estimated to see an even greater push by GCC countries to address the imbalances in their local labor markets.