Unemployment Is Saudi

Topics: Economics, Saudi Arabia, Unemployment Pages: 2 (365 words) Published: June 23, 2013
Unemployment in Saudi Arabia, according to the latest official figures, was 5.5 percent of the total Saudi labor force (15 years and older) in 2012. This means there are at least 300,000 unemployed people in the Kingdom. 
 The decree on the short-run will Couse some sort of difficulties specially on the small and medium firms, but on the long-run the decree will affect on the market positively. Therefore we recommend the following:


Implement the decree gradually (100 and then 200 SR.)


Exclude the firms at the green category (according to NITAQAT program) from the decree. Recommendations GDP: GDP will increase because of the consumption is increase.

Inflation (cost push inflation):
Inflation will increase and the interest rate will increase. The private sector will try to cover the cost of
expatriate workers by increasing the prices of the products and the services which will significantly increase CPI.

Unemployment : unemployment is going to decrease and the target is 8%. Effect of the decree on: ( A) Segment , the supply is relatively inelastic because of the specialized technical or managerial skills , as such expat enjoy higher wages at W 1F. (B) Segment , the supply is relatively more elastic , including middle management , accountants , salesmen and other who command lower salary at W 2F . ( C) Segment , the supply is more and more elastic for low level job with lower salary at W 3F. Source: The Saudi Arabian economy Expat labor elasticity in K.S.A Sets out the concept in terms of differentiate demand and supply for Saudi and non-Saudi labor markets. In this figure ,DS and SpS stand for demand and supply for Saudi labor, while DF and SpF stand for demand and supply for foreign labor. Source: The Saudi Arabian economy Expat and Saudi Labor Demand and Supply . Source: Central Department of Statistics and Information Saudi Labor force distribution Saudi VS Expat

2000.000 unemployed, 85% women, beside other mere...
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