TAIF/MADINA/DAMMAM/BURAIDAH/JIZAN/MAKKAH – Huge efforts have been made to tackle the problem but unemployment is rising in the Kingdom, with the latest report from the Ministry of Labor estimating it at 500,000 people. The process of Saudization has been slow, despite the vast amounts of money the state allocates every year for the development of human resources, initiatives to employ graduates, and attempts to control the recruitment of foreigners. Last year, the Madina Urban Observatory's study of socio-economic development indicators, showed the unemployment rate in the city stood at 23.6 percent – 16.6 percent among males and 38.8 percent among females. Another survey, of 18,000 unemployed young men, conducted by the Human Resources Development Fund, revealed a reluctance on the part of the respondents to work in the private sector. A total of 45 percent of respondents said they were reluctant to work in the private sector because of low wages; 35 percent said there was a lack of job security in the sector; and 19 percent cited long working hours as their main reason. Others blamed private companies for not wanting to employ Saudis and for preferring expatriates for a number of reasons, including being able to recruit them at low salaries. In response to the issue, the Shoura Council has agreed to study a proposal from one of its members, Salem Al-Marri, for monthly financial support for jobless Saudis. The Council has recommended that the proposal be studied by its Management, Human Resources and Petitions Committee. Some economists say that such financial assistance can play a significant role in organizing the labor market. The number of the unemployed would be more accurately determined and these people can then be asked to enroll in courses and training programs for jobs needed in the labor market. Professor of Finance and Economy at King Fahd University of Petroleum and Minerals, Muhammad Al-Ramadi, said the assistance can be used as a short-term measure to support the unemployed. “But it would lose its meaning if it turns into a charity simply to disburse money,” he said. Professor of Finance and Economy at the same university, Ali Al-Alaq, said that such forms of assistance are a feature of many advanced countries. Funding for this could be raised “either through imposing taxes on companies or through the government's direct participation”, he said. Attention must be focused on the segment of the unemployed “whose number has still not been accurately determined”, he said. Some people, however, do not agree with the plan to have unemployment assistance. A member of the Board of Directors of the Chamber of Commerce and Industry in the Eastern Province, Salman Al-Jashi, said that although such assistance has been implemented in many countries “the Kingdom does not need it because job opportunities are available, especially to those who are serious about it. What is required now is not disbursing assistance but making sure there are qualified job seekers ready to meet the requirements of the labor market”. Secretary-General of the Taif Chamber of Commerce and Industry, Salah Bin Abdullah Al-Haddad, said the chamber has been able to match Saudi applicants with jobs in the private sector, but the biggest “hurdle” is that most applicants refuse to work two shifts, a requirement of many private sector companies. Director of the Jizan Labor office, Ali Al-Harbi, said that there are jobs available for Saudis. He said that 3,000 to 4,000 job vacancies are available every year, with only 2,000 to 2,500 applicants. His office imposes sanctions on companies that fail to meet Saudization quotas. Writer Dr. Humood Abu Taleb said that before blaming the private sector, the Saudization policy should be applied to the government sector, where many jobs are available for Saudis. – Okaz/SG – Abdul Aziz Al-Rabi, Khalid Al-Shalahi, Muhammed Al-Abdullah, Arif Al-Odhaila, Iftikhar Ba-Hafeen and Abdul Aziz Al-Marba'a also contributed to the report __
