Saudi Gazette report

JEDDAH — Most economists in the Kingdom believe various industrial sectors can deal with the unemployment issue better than the Ministry of Labor and Social Development, according to the results of a poll published by Al-Watan Arabic newspaper.

A total of 836 economists participated in the poll conducted by economist Ahmad Al-Shihri. The results of the poll showed that 72 percent of economists are of the view that the unemployment should be tackled by supervising entities in each industry such as the Communications and Information Technology Commission, General Authority of Civil Aviation and the Public Transport Authority.

Transferring the responsibility for resolving unemployment to these entities will help break it down and will allow the ministry to focus more on social development, they said.

“Transfer of the unemployment issue to the respective supervising entity will create competition between industries, expand market freedom, economize the unemployment programs and attract investors by creating a dynamic job market,” said Al-Shihri while summarizing the findings of his study.

He said transferring the unemployment issue would decrease the rate of unemployment by at least 2 percent.

“Many industries have already failed in Saudizing jobs. The companies are addicted to employing foreigners in all job tiers. Saudization needs to be carried out gradually. Otherwise, companies serving expatriate communities will be in jeopardy,” said Al-Shihri.

He added the spread of small and medium enterprises has been weakening the Saudization cause as many of them are just a cover for employing foreign labor.