[Webinar] SpiraTest - Setting New Standards in Quality Assurance
HE Adel Fakeih, KSA Minister of Labor
1. Addressing Unemployment in the Kingdom of Saudi Arabia Global Competitiveness Forum Presentation January 2012 Riyadh
2. Saudi Arabia’s labor force more than doubles in next 20 years 1 Includes currently employed and unemployed 2 Range of 2-3 million female labor market entrants indicate different assumptions on future female labor force participation 3 Overall analyses is based on conservative estimates: the KSA government ’s development plan projects 11.8 million Saudi employees by 2024 SOURCE: McKinsey estimates 2030 total est. national labor force 3 Increased female participation 2 Demographic growth of labor force 2008 Saudi labor force 1 + + =
3. ‘ New paradigm for employment’ Initiatives of Ministry of Labor SOURCE: Moll Saudis: Qualify nationals for targeted jobs Expats: Implement better controlled expat manage-ment system Efficiency: Create more vibrant, liquid internal labor market … create incentive system and matchmaking support 2 … expand and improve quality of vocational training 1 … offer preferential treatment for nationals 3 … increase overall price for expat labor, focusing on sectors where nationals are well-equipped to compete with expats 4 … introduce a differentiated sponsorship system 5 … create market-based incentive systems to reduce leakage into the internal sector 6 … establish robust and accurate labor market information system 7 … lobby to reduce gap in attractiveness between public and private sectors 8 … encourage mobility and reduce termination rigidity 9 … ensure a social safety net for nationals 10
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5. Overall reform roadmap Source: Team analysis Job placement centers Introduce public-private partnerships to register and counsel job seekers, address capability gaps, then match to vacant positions Istiqdam Provision of expat and national labor through ‘temporary worker agencies’, providing access to flexible, project based labor Strategic partnerships in vocational training Scaling up the successful model of high-quality 2-year vocational degrees through strategic employer partnerships from currently 10k to 250k students e-Training Simple and easy training modules for job seekers online Virtual Labor Market Automated job search engines, accessible to everybody through the Internet Labor Inspection System reinforcement Collaboration with ILO to make labor inspections in line with international standards Nitaqat Classification system of Saudization performance along sector and company size SME reform 37 specific initiatives identified to stimulate entrepreneurship and growth of small and medium size enterprises Hafiz program Support program for > 2 million job seekers, including job search support, match-making, training, financial benefits
Note the chart shows ~10 million TOTAL jobs, but speech highlights the NEW jobs growth shown in dark green layers ( 3 million jobs by 2015, and 6 million by 2030 )
Note conflict: speech text says “ While in prior years, only 40% of all vocational TVTC graduates found employment in their field of study; this year it ’ s near 95%. ” It is 40 per cent of graduating students (the rest was either unemployed or employed in different field of study), 21 per cent of all students (incl dropouts). This is anecdotal evidence from Dr Salah @ TVTC; kindly double check with them