By Andy Sambidge
World Economic Forum reports say political, economic change will ease jobless issue
Political and economic reform is needed in the Middle East to address the region’s chronic problem of youth unemployment, according to two reports released by the World Economic Forum on Wednesday.
The first - Perspectives on Youth Employment in the Arab World in 2012 - is a direct response to helping solve the region’s unique problems in the wake of the Arab Spring as it bids to sustain early gains generated from transitions of power in some countries.
“With youth unemployment in the Middle East higher than any other region worldwide, there is a massive political and economic imperative to getting Arab youths into work,” said Miroslav Dusek, director, head of Middle East and North Africa, World Economic Forum.
“We hope that decision-makers are able to use this collection of novel thought leadership and global best practice to yield real results.”
The report focuses on a number of issues including female economic empowerment, building Arab civil society to promote economic growth, access to credit, education for employment and a paradigm shift in government from creating jobs to enabling job creation.
The second report - Role of Large Employers in Driving Job Creation in the Arab World - is primarily focused on the role large employers can play in addressing regional unemployment through skills matching and skills development.
The report, a collaboration between Booz & Company, Saudi Basic Industries Corporation (SABIC) and the World Economic Forum, said large employers, including both state-owned national enterprises and privately owned conglomerates, and the critical role that they play in many Arab economies as the structural backbone in growth sectors such as energy, mining and telecom.
“We need to act now,” said Joe Saddi, chairman of the Board at Booz & Company.
“Governments’ regulation led initiatives alone are insufficient - a new paradigm is needed along with new capabilities.
"The public sector needs to engage with the other main stakeholders, namely large employers and educators, to identify the attractive jobs, shape training programs and attract investments to create employment opportunities."
Stop subsidizing the locals and then they will have to work.....labour problem solved!
All of these initiatives ignore one of the main fundamental problems. The local Arab youth does not want to work unless they can have a cushy government job where they are not measured, do not have to perform, receive massive wages and lots of holidays. Countless surveys have confirmed this directly from the youths themselves. If the governments really do want to solve this major issue they need to take some painful decisions - cut government salaries, reduce holidays, increase working hours and introduce KPI's that mean something. In other words adopt a commercial approach in line with the private sector and save money at the same time. The money saved can then be offered to private companies in the form of grants to encourage those that employ locals to train and educate them into becoming meaningful employees.
@ telcoguy you have hit the nail square on the head and nothing else to be said. Up side with much of the world dependent on Middle East energy this is a resource rapidly disappearing and this will surely provide the correction in the Arab community .