JEDDAH, 2 May 2004 — There is no “quick fix” to the problem of unemployment said Dr. Ghazi Al-Gosaibi, the minister of labor and president of the Administrative Council for Public Institutions for Technical Education and Professional Training.
In speeches setting out his program’s objectives, Al-Gosaibi said there was no simple or quick method of eliminating the problem.
He emphasized that solving the unemployment issue is the responsibility of everyone. There should be an organized and systematic approach to dealing with the many different aspects of unemployment, Al-Gosaibi said. The high level of foreign workers in the Kingdom is an area he sees as ripe for improvement.
Al-Gosaibi issued a statement containing 13 points for dealing with the Kingdom’s unemployment problems. He contended that issuing 600,000 employment visas annually “is not acceptable” and that he aims for a 15 percent reduction.
Lowering the rate of foreign employment at an undefined “reasonable rate” on an annual basis will, he says, help create opportunities and account for one side of the equation.
The other side of the equation will be to increase the private sector’s training courses. The “magic word is training,” Al-Gosaibi affirmed, and those training programs that have been initiated are pioneering elements in this area.
He announced three workshops involving the Ministry of Labor and businessmen that would discuss and deal with the pressing subjects of Saudization, structural issues in the labor market and the private sector’s handling of education and training. He disapproved of the actual costs spent on joint training programs but confirmed that the ministry will spend SR1.55 billion on the programs.
The minister said there were “the three illusions” to the unemployment problem: the private sector fighting Saudis, reluctance of Saudis to take on certain jobs, and the high salaries paid to Saudis. He said that Saudization is a strategic option with its application a lenient process and that it is among the ministry’s priorities to develop the performance of labor offices in implementing it.
One Saudi businessman told Arab News he is “all for training and Saudization.”
He commented, however, that as a businessman with responsibilities to his shareholders, he is obliged to limit the amount of “in-house” training.
He felt the most productive long-term approach was to tailor the education system to produce job-candidates with relevant skills that would allow them entry into the labor market.
Al-Gosaibi confirmed that there are currently 100,000 Saudi trainees. Seventy thousand of them form part of the public sector’s commitment and the balance are in the private sector. The intention, he said, is to increase this to 200,000 trainees in the next two to three years through intensified joint initiatives.
Next week further details will be issued regarding the procedure for acquiring permits for foreign labor, announced Al-Gosaibi, adding that the ministry would be focusing on updating its media center for dealing with those searching for jobs.
The minister firmly ruled out the idea of establishing a welfare system for the unemployed.
He pointed out that an economy that can find 7 million jobs for foreign workers could certainly employ 300,000 Saudis. His estimate of the current unemployment is based on studies carried out by the Department of Public Welfare Statistics.
Commenting on the private sector’s commitment to a minimum wage structure, the minister stated that this would create problems leading to more black market labor in other countries. If one minimum wage were established for Saudis and another for non-Saudis, this would amount to discrimination.
Turning to the enforcement of any proposed legislation on employment, Al-Gosaibi said in the case of forgery or cheating, the party in question would in future be prevented from hiring anyone from outside the country.
