RIYADH: Saudi Arabia’s Labour Ministry is asking the government to spend SAR14.9bn ($4bn) annually on labour market reform and steps to move Saudi citizens into private sector jobs, the ministry said in a report.
The figure was contained in the ministry’s annual statistical report for 2013, published on its website. The goal of labour policy is full employment of the Saudi workforce, the report stated.
The SAR14.9bn request is not huge compared to the Saudi state budget, which projects spending of SAR855bn this year. But it underlines the importance that the government attaches to labour reform, and the way in which the labour ministry’s influence has increased as a result.
“Carrying out employment strategy requires providing the necessary resources to carry out mechanisms within a specific timeframe,” the ministry said.
“Given the extreme importance of this issue, it needs to be quickly submitted to the cabinet for study, as any slowdown would translate into an increase in unemployment and a decrease in productivity and would have a direct negative impact on the national economy.”
Concerned by high unemployment among Saudi citizens and lagging living standards among poorer Saudis, the government began introducing far-reaching labour reforms in 2011.
REUTERS
