Tuesday, June 16, 2020
Study reveals about 1.2 Million Expatriates to Leave Saudi Labor Market in 2020
About 1.2 million expatriates are going to leave Saudi Labor market this year, As per the projections of Jadwa Investment Company reports Saudi Gazette.
The most affected sectors that are possible to witness the exit of expatriates in highest percentage are hospitality, food services, administrative and support activities including rent and lease activities, travel agencies, security and building services.
- Even after the exit of large number of expatriates, the unemployment rate among Saudi nationals will be same at 12% by the end of the year 2020 said Jadwa as per the report of Maal online business daily.
- The report also estimates, some sectors are not expected to back in full swing in their business activities in the coming time, In which the most affected sectors are Travel, Hotels, Restaurants, Tourism and Entertainment sectors, even after the relaxation of the lockdown measures imposed due to Covid-19.
- The unemployment insurance support (SANED) scheme from the Ministry of Human Resources and Social Development will allow Saudi nationals to stay on their jobs in private sector, some measures to replace expatriates with Saudis will help in stabilize employment levels.
- As per the Jadwa, SANED beneficiaries reached 450,000 Saudis who are working in 90,000 firms and establishments. Up to now 2.4 billion Saudi Riyals has been spent on the project, Which is nearly 37% of budget allocated to the scheme, There is a possibility of extending SANED for a period of 3 months, if necessary.
- The latest data for a survey of the non-oil Purchasing Manager's Index (PMI) showed that lockdown did not affect the level of employment in the private sector with the same level of severity that affected the comprehensive PMI.
- Based on the medical insurance coverage data, It is expected that most of the slowdown in PMI employment relates to layoffs among expatriates, and these layoffs are expected to see in the coming days too.
- It is expected that the overall business environment will improve in the second half of the year 2020, especially in the 4th quarter of the year and this improvement will bring better prospects for the employment of citizens even though the looming uncertainty associated with Corona virus pandemic.
- The report expected the beginning of the recovery of the economy by the end of the year, there may be increase in demand of some goods and services. Such an increase, in addition to the pandemic, will limit the arrival of expatriates on new visas, which will allows more opportunities to the Saudi citizens.
