Tuesday, 05 July 2011
DOHA: Qatar has the lowest rate of unemployment in the GCC region at 0.5 percent but experts warn that future trends point towards an escalation rather than a decline.
Among the GCC states, Oman and Bahrain top as far as unemployment is concerned as the rate in these countries is quite high at 15 percent each, with Saudi Arabia trailing with 10.8 percent.
The UAE and Kuwait have lower joblessness rates at 2.2 percent and 2.4 percent, respectively, Al Masah Capital said in a report on unemployment in the Mena (Middle East and North Africa) region.
The region (MENA) has the dubious distinction of having the highest unemployment rate in the world, Al Masah said talking of the political upheaval jolting some countries in the region.
The cause of the various civil uprisings in these countries can easily be traced to authoritarian rule, corruption, large rural-urban divide, high inflation and unemployment in the region, Al Masah said in its report.
It added that unemployment, in particular, has played a significant role in energizing the masses.
The situation in the GCC is somewhat better, the report noted, putting the unemployment rate in the region at 4.2 percent. The report, however, said that the total number of new jobs required in the GCC states is 3.3 million.
The services sector accounts for 70 percent of the jobs in the GCC region whereas the average for MENA is 52 percent and that for the world is 43 percent.
Shailesh Dash, founder and CEO of Masah Capital, was quoted as saying that expatriates will keep dominating the jobs market of the GCC since private sector employers prefer foreigners over nationals due to a number of reasons, including their knowledge and skills, lower salaries, higher productivity and flexible recruiting arrangements.
Source: The Peninsula.