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Why is unemployment rate still high?
Published in Alriyadh on 31 - 07 - 2017

The unemployment rate released by the Statistics Authority in its quarterly bulletin for the first quarter of 2017 has increased by 0.04% – from 12.3% in 2016 to 12.7%. The question arises: What is the reason for such an increase in the unemployment rate despite the efforts exerted by the Labor Ministry and the job nationalization program?
The statistics show that male jobseekers account for 219,000 while female jobseekers amount to 68,500, out of the total of 906,000 jobseekers. When we look at the joblessness percentage of 12.7%, we will find out that the males' share is 7.2% and the females share is 33%. It is obvious that joblessness amongst females is more than one-third the total number of jobseekers.
If we speak about joblessness as against job-seeking, we will find figures indicating that males account for 359,700 while females account for 416,2000, thereby bringing the total to 775,900 jobless individuals. In this respect, we have to differentiate between a jobseeker who may be an employee in search of another job and a jobless person who has never joined the workforce.
What is the reason behind the rising unemployment rate? The percentage of unemployment of 12.7% is deemed high. When we split it into males and females, we find that the unemployment rate is even higher amongst females – about 33%. It is higher that the percentages at the time of the financial crisis in some countries in Europe and America.
I still reiterate that solutions for unemployment are available for both males and females. Foremostly, we have to create and foster a culture of liberal enterprise, be it small, medium or large. Moreover, the private sector is a wide source of job opportunities.
It is unfortunate that media reports mostly discourage work in the private sector or free enterprises. Media personnel are not fully aware of the career prospects in these sectors. They promote high salaries and fringe benefits, although they should realize that businesses grow step-by-step.
Opportunities in our labor market are countless. Why do many of us insist on government jobs although they are limited? We complain about foreigners working in commercial and business jobs supposed to be occupied by Saudi nationals. Why do you refrain from searching for work at these workplaces?
Legislations and regulations will continue to be enacted to encourage young men and women to work particularly in the private sector in which there are numerous opportunities. Work in the private sector is available for every qualified and committed citizen.
We have to promote a mentality of free business. We need to encourage the financing and supporting of such businesses rather than discouraging jobseekers by telling them that they are not suited for certain jobs as Saudi nationals.


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