Thursday, September 15, 2016

Saudi Economy to Create 5.7m Jobs by 2020

RIYADH: The Saudi economy is poised to generate 5.7 million jobs by 2020, but the Saudi work force is expected to get less rates of the available jobs compared to foreigners at 45 percent and 55 percent, respectively, according to a study.
The study titled "Assessment of the ability of Saudi economy to generate suitable and sustainable jobs for Saudis," drew three scenarios for the ability of Saudi economy to generatejobs by 2020.
The first scenario, which is more optimistic, says it will create 5.7 million jobs while the second and third ones said it would create 3.5 million and 1.6 million, respectively.
The study, originally prepared for the Seventh Riyadh Economic Forum, dealt with seven major themes, the most important one was that to what extent the Saudi economy could generate jobs in the next five years.
According to the study, the Saudi economy generated 5.5 million jobs in the period 1999-2014, 46 percent of which went to Saudi citizens while the remaining 54 percent went to foreigners.
Jobs increased to 11.1 million in the middle of 2014, with varying rates to Saudi citizens and foreign work force at 45 percent and 55 percent, the study said.
However, the rates of Saudi citizens will increase at higher rates than the population growth rates where Saudis entering the labor market in the period 2015-2020 will register at an average of 408,000 citizens per year, the study said.
The Saudi work force will constitute 34 percent of the Kingdom’s population by 2020, or an increase of work force by 2.07 million during 2015-2020, at an annual average of 346,000, the study said.
However, the foreign work force will have more dominance in the labor market by 55 percent compared to 45 percent to national (Saudi) work force, the study said.
On the suitability and sustainability of jobs, the study expected that the number of Saudi citizens working in acceptable jobs by 2020 will reach 7.10 million jobs.
The study touched on a strategic vision dealing with alternative economic policies and job generation initiatives, which will be suitable and sustainable for new entries to the labor market.
The vision has been prepared in the form of initiatives focusing on the generation of more jobs and the nature of jobs that have to be generated by the private sector companies.

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