GCC nations called to address the imbalance in local labour markets
The jobs in GCC nations are double than the total population of nationals in the working age group, said a latest report.
According to latest official statistics, there are, more than twice the number of jobs available in each of the six GCC nations, than there are nationals of working age group. Although, the ratio varies from one country to another, in Qatar there are 10 jobs per person, while in Oman there are just enough jobs for the entire working age population.
The report said that only less than 50% of working age population among Bahrainis, Omanis and Saudis were officially employed, while this number is just more than 60% in other three GCC nations.
Therefore, Citi seeks a greater push by GCC nations to address this imbalance in local labour markets.
According to Farouk Soussa, Chief Economist-Middle East, at the Citi group, it is not the lack of jobs that are a cause of concern in GCC, but it is the non-suitability of these jobs for large section of local population that is the reason for such a scenario.
Although it is important to see that the local population possesses necessary skills to accept these jobs, it is also necessary to improve the participation of local labour market in the GCC, Farouk said.
An overhauling of labour policies is a must to enhance the salary package and working conditions of all workers, and make the private sector labour market more competitive and flexible. The report also points out to promote hiring of locals by increasing cost of foreign labour, while also reducing the inherent advantages of working in a public sector, in comparison to that of private sector.
Posted on 21/3/2011