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Sun 21 Mar 2010 02:11 PM

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GCC unemployment forecast to hit 10.5% in 2010

Study shows unemployment rate in the GCC reached 8.8 percent in 2009.

The unemployment rate in the GCC is forecast to rise to 10.5 percent this year, according to a new report published on Sunday.

The latest findings of the 'GCC Unemployment: Sustainable Economies' report published by recruitment company TalentRepublic.net, revealed that the unemployment rate in the GCC reached 8.8 percent in 2009 and is expected to increase to 10.5 percent this year.

The report added that government led initiatives are needed to encourage entrepreneurship and provide small-scale investment opportunities for unemployed citizens and fresh graduates.

It also called for the government to encourage private educational institutions to implement training schemes to help unemployed citizens and new graduates gain access to the jobs market.

The report said GCC governments should introduce finance initiatives to encourage unemployed citizens to develop their entrepreneurial ambitions. It also stressed the need for governments to highlight key sectors where there are job opportunities, such as solar energy, education and healthcare.

Earlier this month, Sultan Sooud Al Qassemi, chairman of the Young Arab Leaders UAE Chapter, said that research showing that 61 percent of Arab youth in the UAE would prefer to work in the government sector is “a disaster” and the government cannot absorb that many Emiratis.

The second annual Arab Youth Survey, which was carried out in October last year and involved face-to-face interviews with 2,000 Arab youths in nine countries, found that 46 percent of young Arabs would prefer to get a job in the government sector.

In the UAE, the rate was even higher, with 61 percent saying they hoped for a job in the government sector and only 31 percent preferring to go into the private sector.

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Tarek 10 years ago

If there are strong regulations that govern the private sector the GCC nationals will be lured to work there and this will eliminate the unemployment problem all together.

Telco guy 10 years ago

Tarek, I will assume that you mean higher Emiratisation quotes,. Have you considered the possibility that companies simply will move? On a more general sense, I find truly amazing how people in this part of the word believe that laws and regulations are the answer to any problem. You can not create wealth by regulating.

Tarek 10 years ago

Telco you got me all wrong, I meant regulations that protect the rights and improve the conditions of workers in the private sector, then and onlyl then the private sector will be an attractive place to the nationals. I didn't mean imposing any quotas at all, this will never work...

Telco guy 10 years ago

Tarek, You can not fire locals! they get paid more for the same job, or at least for the same title... I really do not think this is the problem. Locals are not taking private jobs (see some reporting on AB last week) because Government jobs are more comfortable, and lets be honest, private companies are not too concerned about that. That little to do with rights and protection and a lot with deeper social issues. Anyhow that is how they want to run their show here, and that is fine with me. I may think that it will end up messy, but it is not my money.

Dr Zakir Hussain India 9 years ago

The region is passing through a 'paradox': amid 15 million expatriates engaged in gainful employment their own nationals are facing unemployment, 10.5 per cent official, unofficially15 to 20%. There is no magic wand to remove this problem. The problem started rising over the last three decades but the Gulf authorities, mostly public sector, were busy with political issues. Now, they cannot undo it at once; they need sustained training of their labour force, change in their education pattern,developing capacity to manage migration. In mid to long term they would be able to overcome the problem. This also so because the nature of unemployment is quite different from other regions. Mismatch is skills is one the great problems in the region, nationals want public sector jobs even at the cost of remaining unemployed.