05/09/2014
Reform plans focused on providing more jobs for Saudis
Saudi Arabia aided with money and technology to alleviate labor market reforms
The new labor law draft calls for Saudi Arabia to reduce the working hours in the private sector to 40 hours per week and grants workers a daily weekly holiday instead of one now. It looks like the phenomenon in order to alleviate the burden of work; however, the idea is to encourage Saudis to work more, not less. This proposal represents a shift in the orientation of the Government of Saudi Arabia to provide more jobs for its citizens in the private sector within the more ambitious economic reforms over the past decades. After achieving great successes over the past three years to provide thousands of jobs for Saudis in the private sector and reduce dependence on foreign labor, the Government now seeks to amend the labor market reforms in order to achieve long-term objectives with new challenges. According to Reuters in an expanded investigation published Wednesday by labor market reforms in the Kingdom: the reform plans, which began late 2011 focused on pressure on the private sector to provide more jobs for Saudis by the recruitment quota system ' ranges ' and tougher penalties for companies that do not adhere to those quotas and to commit certain sectors employing women.
In 2012 the Ministry of labor is imposed on companies' fees of 2,400 reais ($ 640) for each foreign worker over the number of Saudis in step with the foreign worker recruitment became more expensive by Saudi counterpart. As a result of reforms adopted by the Ministry: the unemployment rate fell in 2013 to 11.7 percent from 12.1 percent in 2012. According to the Statistical Yearbook of 2013 issued by the Ministry in late July have helped recruitment strategy to achieve tangible results and successes highlighted by the high rate of localization in the private sector to 15.15 percent by the end of 2013, compared with 9.9 percent in 2009. The number of Saudi workers nearly 1.5 million workers by the end of 2013 compared with 681 and 481 factor before the start of the implementation of the strategy. But on the other hand those reforms led to stalled projects and had a negative effect on the profits of some companies providing cheap labor has made it more difficult.
In recent months began to impact those reforms on macroeconomic growth in non-oil sector slowed to 4.4 percent year-on-year in the first quarter of this year registered a slower pace in at least 10 years, compared with 6.2 percent in the previous quarter. As GDP growth declined to an annual rate of 4.7 percent in the first quarter of the year compared with five percent in the previous quarter. In addition, damage corporate profits that depend heavily on foreign labor. Recorded sons Abdullah khodari, one of the most prominent construction companies declined by 69 per cent in the second year of profits causes, most notably high labor cost. And labor market reform initiatives to erode corporate profit margins by at least 50 per cent of the average cost incurred by the company 50 million annually since July 2011, according to its Chief Executive, Fawaz Abdullah Al-khodari said in an interview with ' Reuters ' in April.
Prominent Saudi economic says Abdulwahab Abu Dahesh ' Ministry of labor used the system of electric shocks at a time when the global economy remains weak and passed through the regional economies with political instability. 'Adds ' the use of electric shock was somewhat on the private sector. ' said about the reform policies, most notably ' the phantom ' employment with some companies circumvent the law by registering their relatives in personnel records, through the granting of University students and graduates 1,500-2,000 Saudi riyals (400-535 USD) per month For registering their employees while they are ' at home '. Therefore seeking to modify its strategy through launch new measures to ease the impact of reforms on the companies and their financial burdens resulting from the recruitment and training of Saudis. At the same time trying to increase employment opportunities for Saudis and their stability in the labor market and encourage them to work in the private sector on the other.
Ahmed Al Humaidan, Undersecretary for Labor Affairs ' problem lies not in the ability to create jobs, we import annually 1.2 million foreign workers, which means that the jobs available in the private sector '. Adds ' Ministry works to support the Saudis to be accepted by the private sector, regardless of the cost. Our goal is not the damage to our companies set the Saudi and market reform. Though this costly share cost ' challenges to the Ministry with a number of challenges in achieving strategic objective inherent in reducing the unemployment rate, most notably a minimum wage commensurate with the needs of the working and increase the level of competitiveness between the Saudis and expatriates and modify the nature of the contracts flexible appointment arrivals or terminate their contracts compared to the Saudis. According to researchers from Harvard University met ' Reuters ' in Riyadh on the sidelines of the workshops organized by the Ministry, the biggest challenge is changing the mindset of youth and the high expectations that they expect her from the labor market.
But Abu Dahesh believes that unemployment in Saudi labor market related only to find the right job and says ' the job market here is not like other markets. Our unemployment is the search for a better job opportunity and not finds opportunities. ' experience when he returned from Saudi Arabia Sultan bin hayzan-young Saudi who studied marketing in a UK University – since about a year he joined a major insurance companies but six months after he found it does not achieve his ambitions, decided to resign. And still without work since April. Ben hayzan ' sometimes it's hard to accept a job with a salary of six or seven thousand reais when compared with the qualifications of the applicants qualifications with you ...It's not about getting a salary of 15 or 16, 000 a month but a favorable working environment provides career training and good future '.
Adds ' most of the graduated with me have found jobs through the medium and through people they know. There is here the place sent your resume, they will contact you. It's like casting in the desert and you are required to manage your finances on your own '. In the labor market suffers ' Om Muhammed ' are a Saudi working since year one ' a ' Cashier stores famous footwear in Riyadh that the business climate in the retail sector is still unfit for work. And she said they often face harassment and complained of the inadequacy of the weekend and is currently one day and inadequate compensation. She said ' I get about 3,000 rials after discount social and medical insurance and grant driver 1200 SR '. Hiring a driver is Om Muhammad welfare country banning women from driving.
