DAMMAM: The Saudi Cabinet approved the establishment of a new authority for creating jobs and combating unemployment in the Kingdom last week. All sectors welcomed this decision, hoping that it will contribute to the creation of sustainable employment opportunities for Saudis.

The new authority, which is linked to the chairman of the Council of Economic Affairs and Development, aims to coordinate all government and private agencies related to the labor market to develop the job-generating sectors and to encourage investment in competitive industries.

Despite the enormous potential of the Saudi economy, recent reports indicate that the unemployment rate among Saudis stood at 11.7 percent last year in the presence of a large number of foreign workers that make up 84.5 percent of the private sector workforce.

In this regard, Ali Al-Jabali, a human development consultant, said: "The private sector is a key component of the national economy, contributing 40.3 percent of our national GDP at the end of 2014, while the government sector recorded a contribution of 16.4 percent, which reflects the positive growth taking place in the private sector's economic activities."

According to the Ministry of Labor's reports in 2013, the number of young workers in the private sector amounted to 1,466,853, which is 15.15 percent of the total number of workers in the private sector, which itself counted 9,679,635 Saudi and expatriate workers, Al-Jabali said.

He also confirmed that Saudis constitute 82 percent of the workforce in the construction, wholesale, retail services, and manufacturing sectors.

In addition, Mohammed Al-Muhaisin, general director of the Cooperative Societies Council, said: "The Cabinet's decision will contribute significantly to the creation of jobs and the reduction of unemployment through the diversification of jobs in the commercial sector," confirming that cooperatives are considered among the most important practical solutions to developing the Saudi economy and enabling citizens to participate directly in productive economic process in all its forms.

Al-Muhaisin noted that the council has put in place a strategic plan to increase collaborative work in the Kingdom and to eradicate poverty through the creation of a variety of jobs in the cooperative sector, and the setting up of new cooperative organizations such as cooperative housing societies.

"This procedure will provide an opportunity for Saudis to undertake additional work in line with their specializations and the needs of the market," he added.

On providing more jobs for remote area citizens, Al-Muhaisin said that the council is working to create new job opportunities in the field of tree plantations in desert areas, and is signing contractual agreements with interested vegetation cooperative societies in all regions of the Kingdom.