Unemployment is an issue that affects many parts of the world. Governments are dedicated to increasing job opportunities to reduce the impact of the problem in their respective jurisdictions. Mohamed-Meteb (2017) defines unemployment as the number of people who have the necessary skills and knowledge, are employable, and actively search for a job but cannot secure one. It is measured by the unemployment rate, which is arrived at by dividing the total sum of employable people but have no jobs by that of those in the labor force. In Saudi Arabia, the rate of unemployment was capped at approximately 5.86% for all the inhabitants by the end of the second quarter of 2020; but the same statistic was 12.8% for Saudi citizens (Plecher, 2020). This report is about the KSA Vision 2030 and how it impacts unemployment in the kingdom.
This report was conducted to highlight the specific ways in which KSA Vision 2030 can improve the critical determinants of employment in the region. One of the blueprint aims is to reduce unemployment rates from 11.6% to 7% (Khan, 2019). This is possible by targeting specific sectors of the economy. According to the Ministry of Labor, creating employment opportunities can boost both the social and economic well-being of over 250,000 new graduates entering the job market each year (Khan, 2019). The rates of unemployment are higher in women than in men, and this is the reason the vision also targets to deliberately encourage female participation in the workforce.
The KSA Vision 2030 aims to adopt some strategies to help reduce unemployment rates in the kingdom, worsened by the COVID-19 pandemic. One of the ways this will be done is by developing the local labor force by promoting vocational training and entrepreneurship (Khan, 2019). By the end of the target period, the blueprint intends to develop a working database for students from which private local sector companies can source labor from qualified graduates. The other way to tackle unemployment is by overhauling the education system to equip young men and women with the requisite knowledge and skills for future jobs. In so doing, the education system will be responsive to the needs of the job market. Another strategy to tackle unemployment is what Khan (2019) calls ‘Saudization’ to encourage and promote the local workforce. The objective of this approach is to increase the employment of Saudi nationals. These are some of the ways the KSA Vision 2030 impacts unemployment.
This research is relevant as it seeks to explore the various factors surrounding unemployment in Saudi Arabia. One aspect is the disproportionate representation of men and women in the labor force (Khoja, 2016). As stated above, the blueprint aims to increase women’s involvement in many sectors of the economy through employment. Thus, it purposes to create equal job opportunities for all, including people with disabilities, to integrate them effectively as members of society to position them for commercial success. Over half of Saudi graduates are females, and this makes them a great asset. The KSA Vision 2030 must, then, explore ways to ensure women secure jobs to strengthen them and contribute to the overall development of the economy. Another important aspect is Saudization, with a focus on women’s empowerment through employment. This is one of the ways this study is practically significant.
The other crucial facet of this 2030 blueprint is lifting the “blanket ban on women” from working at night and other parts of the economy in which they are prohibited to work in. In this connection, women will start to be considered for some night duty sectors, including hospitality and health. This resolution intends to reduce the rates of unemployment in Saudi Arabia and increase employment opportunities for women in the kingdom (Khoja & Thomas, 2020). To this end, the purpose of this report is to explore the impact of the KSA Vision 2030 on unemployment.
References
Khan, M. (2019). Working toward vision 2030: Key employment considerations in Saudi Arabia. SHRM. Web.
Khoja, S. (2016). KSA’s vision 2030’s impact on employment – Employment and HR – Saudi Arabia. Mondaq. Web.
Khoja, S., & Thomas, S. Saudi Arabia promoting women in the workforce: 2020 each for equal – The decade ahead to vision 2030 – Employment and HR – Saudi Arabia. Mondaq. Web.
Mohamed-Meteb, A. (2017). Unemployment and economic growth in Saudi Arabia 2000-2015. International Journal of Economics and Finance, 9(9), 83. Web.
Plecher, H. (2020). Saudi Arabia – unemployment rate from 1999 to 2019. Statista. Web.