Saudi Arabia and Japan to collaborate on training Saudi students in Manga comics Saudi Minister of Culture discusses cultural collaboration during Tokyo visit    Saudi defense minister meets with Swedish state secretary    Navigating healthcare's future: Solutions for a sustainable system    Sixth foreign tourist dies of suspected methanol poisoning in Laos    Hungary's Orbán vows to ignore war crimes arrest warrant for Netanyahu    Russia gives North Korea million barrels of oil, breaking sanctions: report    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Trump picks Pam Bondi as attorney general after Matt Gaetz withdraws    9 erring body care centers shut in Riyadh    Al-Jasser: Saudi Arabia to expand rail network to over 8,000 km    OMODA&JAECOO: Unstoppable global cumulative sales over 360,000 units    Saudi Arabia sees 73.7% rise in investment licenses in Q3 2024    Al Hilal doesn't need extra support to bring new players, CEO says    20,000 military emblems confiscated in Riyadh    Rafael Nadal: Farewell to the 'King of Clay'    Indonesia shocks Saudi Arabia with 2-0 victory in AFC Asian Qualifiers    Sitting too much linked to heart disease –– even if you work out    GASTAT report: 45.1% of Saudis are overweight    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



There is no relationship between the Ministry of Labor and unemployment
Published in The Saudi Gazette on 18 - 03 - 2017

In developing countries, the Ministry of Labor is always blamed for the lack of job opportunities in the market. For example, the Saudi Ministry of Labor has been blamed many times for the rising number of college graduates who do not find work. I am sure you remember the late Labor Minister Ghazi Al-Gosaibi and how he was blamed and in some cases verbally abused because Saudization percentages were low during his time in office. Former Labor Minister Adel Fakieh also received a barrage of criticism for the same reason.
People seem to mistakenly think that the Ministry of Labor is responsible for finding jobs for Saudis. In fact, this is not the ministry's job. The ministry is responsible for regulating the relationship between employers and employees and passing laws on this. It is also responsible for publishing information about unemployment rates, average salaries, etc. The government and the ministry are not responsible for creating job opportunities.
I hope the ministry will conduct an exhaustive study about the current jobs available in the market. This study should not focus on the number of jobs, rather on the type and level of these jobs and the salaries, perks and other allowances that they offer. If such a study were to be conducted, then we would discover that the private sector labor market is crippled. We would discover that there are only two sectors that provide jobs and there are millions of expatriate workers who are ready to accept low salaries. In fact, there are no jobs that meet the expectations of ambitious Saudi college graduates, even those who graduate from Western universities.
Of course, there are exceptions. The banking sector creates a large number of job opportunities because the banking services have seen major developments since the 1990s thanks to the Citibank Group, which established the Saudi-American Bank. In fact, the Group has taken the banking industry to unprecedented levels in the Kingdom and the Middle East. More importantly, the Group needed a large number of highly qualified employees to keep forging ahead in achieving success.
Another example is that of the four telecom companies operating in the Kingdom. These companies continue to compete fiercely to attract more customers. As a result of this competition, they need more employees. That is why Saudis can find lucrative jobs in these companies. Their marketing departments need dozens of employees, not only one or two. Their customer service departments need thousands of employees to ensure that the company is ahead of its competitors in the market. The finance department uses enormous and sophisticated invoicing programs, which are run by qualified employees.
Let us assume that the banking and telecom sectors did not have important players like the above, where would the thousands of employees working in these two sectors go? Aramco, SABIC and other similar companies play a pivotal role in creating thousands of job opportunities for employees. However, these companies provide only 25 percent of the total number of jobs in the private sector. This means that we will continue to worry about high unemployment. Therefore, the ministry needs to conduct the above-mentioned comprehensive study to understand the real problem and work on solving it using new methods and mechanisms.
What about the remaining 75 percent? How are we going to create jobs for them? Some might say the best solution is to stop relying on expatriate workers. This is illogical. The Saudi market has thousands of job opportunities but the majority of jobs do not require highly skilled workers. For example, jobs related to maintenance services account for the majority of unskilled jobs.
The hospitality sector, especially furnished apartment buildings, employs thousands of expatriate workers who do not know anything about hospitality but they take on these jobs and get paid low salaries. Fast food restaurants employ a large number of workers who can do different tasks that do not require many skills. Groceries employ hundreds of thousands of untrained expatriate workers, as most Saudis would not work in a grocery store because the salary is low. Unfortunately, there are no tourist activities in our country. We do not attract tourists wishing to see archeological sites. These sectors and activities account for the above 75 percent.
The Ministry of Labor should not be blamed when the investor hesitates or thinks twice before he or she decides to invest in certain sectors. If one wants to know the reasons why investors are not interested in certain sectors, one should ask the Saudi Arabian General Investment Authority which has become part of the Ministry of Commerce. They have all the answers to any questions related to the above reasons. An attractive investment environment should be created to spur investors to invest. Once we have realized the main problem and found the proper solutions, we can say we have taken the first step in the right direction.


Clic here to read the story from its source.