Mubasher: The GCC countries' labour market nationalisation policies have a goal of offering a higher number of jobs for a rapidly growing population, according to a recent report by Moody’s.
The rating agency noted that such policies may increase labour costs and hamper diversification, Moody's Investors Service said.
“Rapid GCC population growth is leading to increased demand for jobs as new entrants join the market and only modest numbers of workers retire. Social changes will compound higher employment demand, particularly if more women enter the workforce,” Moody’s added.
The size of the job market in the current time shows that the number of new jobs for nationals needed in the coming two decades to meet labour market and social objectives is highest in Saudi Arabia, Oman, while it is lesser extent in Kuwait.
Moody's Analyst and co-author of the report Thaddeus Best believes that "The size of the challenge is greatest where nationals comprise a relatively large share of their total populations, unemployment is relatively high, and there is less capacity to absorb new entrants into the public sector. Amongst the GCC these conditions apply to Saudi Arabia and Oman in particular."
Pressures are less registered in the UAE and Qatar, where the number of expats is higher relative to nationals which indicates greater scope to create jobs for nationals as long as skills requirements are met.
