Expats to blame for Saudi unemployment

EXPATS BLAMED: Saudis said foreign workers were the reason so many nationals were out of work, the survey found. (Getty Images)

Expatriate workers are to blame for Saudi Arabia's rising unemployment, according to a survey of Saudi nationals by YouGovSiraj.

More than 66% of respondents to the survey said the huge number of foreign workers in the kingdom was making it difficult for Saudis to find work.

The World Bank puts the Saudi Arabia's unemployment rate at around 12%.

“It is worrying in an economic boom that Saudis are struggling to find appropriate employment," Nassim Ghrayeb, CEO of YouGovSiraj, said in a statement.

"While a number of different factors are contributing to this, there is clearly a strong perception that the highly experienced expatriate workforce is difficult to compete with."

Saudi Arabia, like all other Gulf Arab states, is heavily reliant on foreign workers to fuel its booming economy.

Around a third of the 27 million people living in Saudi Arabia are expatriates, with the percentage of expatriates that make up the kingdom's workforce even greater.

The high number of foreign workers in the GCC is commonly attributed to the fact that Saudis and other Gulf nationals are often unable or unwilling to do the work of expatriates.

Respondents also blamed unemployment on a lack of vocational education, with over half of those surveyed saying it was a contributing factor.

According to recently released government statistics, around 90% of unemployed Saudi men lack the appropriate education even for minor jobs.

A further 23% of respondents said unemployment was due to excessive "fussiness" among graduates in choosing jobs.

Over 56% of those surveyed said they would consider moving abroad to find employment.

Saudi Arabia, like other Gulf Arab states, has been implementing numerous schemes to both encourage nationals into employment and force companies to hire more nationals.

However, these efforts have largely been unsuccessful in reducing Gulf states' reliance on expatriates.

Saudi Labour Minister Ghazi Al Gosaibi in February criticised the kingdom's private sector for failing to hire more nationals on news that foreign work visas issued by the ministry had increased by a third in 2007.

Print | Email | Discuss this article |

USER COMMENTS (4 COMMENTS)

POST A COMMENT

Gabrielle hit the nail on the head
Posted by Expat in Riyadh, Riyadh, KSA on 29 April 2008 at 15:29 UAE time


The company I work for has literally thousands of vacancies, however labour turnover rates among Saudi staff is shocking, for example 78% of Saudi new joiners leave within 3 months.

Expats to blame for Saudi Unemployment
Posted by Gabrielle Harwood, London, UK on 21 April 2008 at 08:12 UAE time

Having spent many years in Saudi Arabia including during its expat workers' height, the fact is that the huge number was dictated by the massive infrastructure build created by the series of 5 year plans.

Unfortunately, although schools were also built not enough focus was given to updating education and preparing the work force of the future. While there were so many others to do the work for them a generation grew up spoiled and unready for their adult task.

Knowing several University lecturers who were pressured into passing `would be failed' candidates, the average Saudi `degree' was once held to value little more than a UK GCSE. As this generation came on line in the Saudisation program employers, expat and Saudi alike, discovered that there was little work ethic and unwillingness to do anything other than `be' for example a top executive.

When the employment dwindled, pressure was applied by the government to take so many Saudis per company.

When so often a young Saudi might work for a day or two and then just turn up for his salary (or not at all), naturally employers were unhappy.

In order to encourage emloyers a low rate of pay was suggested and so Saudis who do seek regular work are likely to be paid less than their ex pat colleagues.

So, who will keep the machinery grinding on except the expats? It is a sad situation but one in which in which the Saudi government must take their responsibility. Perhaps even more sad, unlike the U.A.E., there is not much evidence now of the glorious infrastructure dream which fostered the situation in the first place.

Good points Anil
Posted by Vishal, Dubai, UAE on 7 April 2008 at 11:21 UAE time


Enough said...Better the blame the companies who don't hire Saudi Nationals due to their wage demands...

Easy to Blame
Posted by Anil Kumar, Fairfax, USA on 7 April 2008 at 09:17 UAE time


What Saudi needs to think is that its nationals should be ready to do the work expats are ready to do. Lot of them argue we are paying monies for that service - Well if that is the case why is the Saudi nationals not accepting that work. Saudi government should take drastic step to correct the unemployment ratios - it should first make it that it employ nobody in the main areas like Gov, Security Forces, Police forces except Saudi Nationals - not even arab nationals should be employed - exactly like all other countries in the world do - and then move on to the govt owned companies- Private organizations always should have the freedom employ locally and post expats - Because they drive business and there responsibility most of the time are not social help. However, when they drive business they indirectly drive revenues and services for the country where local population are employed. When this happens they will automatically oblige for social support also, this will also attract Saudi nationals to work for them. There should be tax holidays and subsidies for companies which have saudi workforce and thus these companies also will then derive the benefit.

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.