Middle East unemployment rate unaffected by crisis
With the global financial crisis hitting regional economies worldwide, the number of unemployed stood at 212mn worldwide last year. However, the Middle East seems largely unaffected by the global financial crunch during the years 2007-09.
The unemployment in the region is currently estimated at 9.4percent, an increase by 0.1percent from 2007, says a report released by the Geneva-based International Labour Organization (ILO).
The impact of global crisis on the regional labour market, is not however, adequately reflected in unemployment rate movement, as several expatriate workers in the Gulf countries, have returned home on losing jobs.
Unlike in Europe and other nations, the migrant workers do not ‘sit out the crisis’ in the Middle Eastern countries. The ILO reports that few Gulf countries have implemented laws restricting termination of national workers, and therefore, the rate of unemployment remains unaffected.
However, for the Middle East, youth unemployment continues to remain a challenge, as the rate already stands high at 21.4percent during the outset of the crisis. This is in comparison to the rate of 5.6 percent among adults and this could have grown to 2.2 percent in 2009.
The economic growth in the region has decelerated considerably, but has remained positive in 2009, with estimated growth of only 1.4 percent. The decline is largely due to fall in oil prices and due to downturn in financial intermediation and real estate sectors.
According to the ILO, the persistent labour market issue in the region is the gap between the sexes in terms of labour force participation and access to decent and productive employment opportunities.
However, women have got more involved in labour force participation over the years, while the female participation rate is only one-third of that of male. This is estimated at 25.4percent in 2009, with the Middle East female participation rate being the lowest in all regions, the ILO noted.
Posted on 1/2/2010