1.2 million foreigners expected to exit Saudi labor market in 2020: Study

33
Advertisement

For the latest updates, news, and events of Saudi Arabia you can join our WhatsApp group


RIYADH — As many as 1.2 million foreign workers will leave the Saudi labor market during the current year, according to projections by Jadwa Investment Company.

The most affected sectors that are likely to witness the exit of the highest percentage of foreigners are hospitality, food services, administrative and support activities, which include rent and lease activities, travel agencies, security and building services, the Jadwa report said while noting that despite the departure of a large number of foreigners, the unemployment rate among Saudis will remain unchanged at 12 percent by the end of 2020, Maaal online business daily reported.  According to Jadwa’s estimates, some sectors are not expected to be back in full swing in their business activities in the near future, especially the most affected sectors such as travel, hotels, restaurants, tourism and entertainment sectors despite the gradual relaxation of the lockdown measures imposed due to coronavirus.  The report noted that the unemployment insurance support (SANED) scheme, introduced by the Ministry of Human Resources and Social Development, will allow Saudi citizens to retain their jobs in the private sector, in addition to some measures to replace foreign workforce with Saudis will help stabilize employment levels.  Jadwa noted that the number of SANED beneficiaries reached 450,000 Saudis who are working in more than 90,000 companies and establishments by last month. So far, about SR2.4 billion has been spent on the project, which represents about 37 percent of the budget allocated to the scheme. There is ample room to extend SANED for a period of more than three months, if necessary, the report pointed out.  Jadwa stated that the latest data for a survey of the non-oil Purchasing Managers’ Index (PMI) showed that the lockdown did not affect the level of employment in the private sector with the same level of severity that affected the comprehensive PMI. Based on health insurance coverage data, it is expected that most of the slowdown in PMI employment relates to layoffs among foreign workers, and these layoffs are expected to continue in the near future.  According to the Jadwa report, it is expected that the overall business environment will improve in the second half of 2020, especially in the fourth quarter of the year, and this improvement will bring better prospects for the employment of citizens despite the looming uncertainty associated with the coronavirus pandemic.

Trending Now  The new Salwa Port between Saudi Arabia and Qatar to open Tomorrow

In particular, with the departure of a large number of foreigners during the year 2020, there is a greater opportunity for Saudis to replace foreigners in sectors that had already created a large number of jobs for Saudis.  Moreover, with the expected beginning of the recovery of the economy by the end of the year, there could be a significant increase in demand for some goods and services. Such an increase, in addition to the precautionary measures linked to the pandemic, will limit the arrival of foreigners on new visas, and this will subsequently provide more opportunities for the citizens, the report pointed out.

Trending Now  The new Salwa Port between Saudi Arabia and Qatar to open Tomorrow

Source : Saudi Gazette

What's your reaction about this news

🥰𝙒𝙚 𝙝𝙤𝙥𝙚 𝙩𝙝𝙖𝙩 𝙮𝙤𝙪 𝙡𝙞𝙠𝙚𝙙 𝙩𝙝𝙞𝙨 𝘼𝙧𝙩𝙞𝙘𝙡𝙚. 𝙋𝙡𝙚𝙖𝙨𝙚 𝙨𝙝𝙖𝙧𝙚 𝙞𝙩 𝙬𝙞𝙩𝙝 𝙮𝙤𝙪𝙧 𝙁𝙧𝙞𝙚𝙣𝙙𝙨 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚 𝙩𝙤 𝙤𝙪𝙧 𝙬𝙚𝙗𝙨𝙞𝙩𝙚 𝙗𝙮 𝙘𝙡𝙞𝙘𝙠𝙞𝙣𝙜 𝙤𝙣 𝙩𝙝𝙚 𝘽𝙚𝙡𝙡 𝙄𝙘𝙤𝙣 (𝙇𝙚𝙛𝙩 𝘽𝙤𝙩𝙩𝙤𝙢 𝙤𝙛 𝙩𝙝𝙞𝙨 𝙋𝙖𝙜𝙚) 𝙩𝙤 𝙧𝙚𝙘𝙚𝙞𝙫𝙚 𝙣𝙤𝙩𝙞𝙛𝙞𝙘𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝙚𝙫𝙚𝙧𝙮 𝙏𝙧𝙚𝙣𝙙𝙞𝙣𝙜 𝙖𝙧𝙩𝙞𝙘𝙡𝙚.🥰

Add us on Snapchat

Follow Us On  Google News

For the latest updates, news, and events of Saudi Arabia you can join our WhatsApp group or Telegram

Find Jobs Online in any region of Saudi Arabia on  KSA Job Site

Advertisement
Advertisement