Dubai Employment News
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| The Governments in the oil-rich Gulf Arab States have failed to tackle the unemployment problem faced by their own citizens, despite enjoying huge economic growth generated by record oil revenues. The Gulf Co-operation Council (GCC) members have been conducting programmes to train nationals and encourage them to join the workforce, but still, the private sector in the region heavily relies on imported labour. Being faced with the unwillingness or inability of their own people to work in private sector, the government continues to remain the major employer of native workers in the GCC, which includes Bahrain, Oman, Kuwait, Saudi Arabia, Qatar and the UAE. According to a Saudi Economist, Ihsan Bu Hulaiga, the GCC labour market continues to remain deformed due to its openness to foreign workers, and also because the public sector continues to function as the convenient employer for citizens. “No where is it done this way, It is not acceptable,” he added, pointing out to the fact that expatriates in the GCC comprise 40 percent of total population, out of 37million, and highlighted that Saudi Arabia had issued a record of 1.7mn new working visas last year. Traditionally, the public sector in GCC states employs maximum number of nationals, under very relaxing conditions, compared to the private sector. Young people are drawn towards the public sector for the fewer working hours and job security, lamented Bu Hulaiga. However, as the private sector creates maximum job opportunities, most GCC countries have set a quota system for nationals in private businesses. This policy, too, “contradicts all economic concepts,” says Bu Hulaiga. The solution is to make the national manpower more appealing to employers, which is currently unqualified and more costly (than expatriates). Bu Hulaiga believes that with the current economic growth, there is a great chance to qualify the young nationals by providing training, and subsidizing salaries by bringing them on par with that in public sector. Kuwait is already working towards that goal. While the private companies pay their employees with the basic salary, the government chips in with allowances. Since 2003, about 36,000 Kuwaitis have joined private firms, as the government launched a programme that motivates private sector to recruit citizens, and the rate of unemployment dropped from 7.1 percent in 2003 to 5.3 percent in 2007. However, the emirate’s public sector is still the main employer of nationals, absorbing about 79 percent of the active national workforce. “It is a time bomb. It will not be possible for the government to employ them, as Kuwaitis represent a meager 3.9 percent of the private sector labour force in the country, with nationals being less than one-third out of a population of 3.4million,” agrees Bu Huliga. Posted on 11/4/2008 Read more newsThree new industrial parks likely to boost job prospects in Abu DhabiPositive outlook for UAE jobseekers in 2012UAE workforce to witness steady growth in 2012Pay hike on the agenda for UAE employees in 2012UAE residents unsure about job stability and new jobs in the marketImproved recruitment activity in UAE during 1H 2011Job redundancies unlikely in UAEEmirates Airline to conduct 77 recruitment fairs across the globePromotions without pay hikes, now a common trendUAE records growth in hiring process during summer monthsMonsterGulf launches Return2Home recruitment initiative for expat nationalsNew properties to generate 1000 new jobs in UAE this yearUAE salary levels most competitive in the region, say expertsRevised minimum wage policy likely for migrant Indian workersTawdheef 2011 opens on 25th January with over 2500 job vacanciesUAE job market to be streamlinedMore than half of the employers to recruit in Q4 2010Dubai among top five destinations of choice for employmentAll companies in Dubai must abide by Wage Protection SystemCompanies failing to pay timely wages will be referred to Labour Court |
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