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Sunday, May 19, 2024 17:7 GMT
The unemployment rate in Saudi Arabia decreased to 12.6% in the fourth quarter (Q4) of 2020, down from 14.9% the previous quarter, according to the latest data from the General Authority for Statistics (GaStat). According to a report by Riyadh-based investment management advisory Jadwa Investment, the decrease in joblessness was due to more women and young people joining the Saudi labor force at the end of 2020. “The recovery in the labor market has proceeded quicker than we anticipated (with Saudi unemployment at 12.6% at the end of 2020, versus our forecast of 14%). At the same time, however, the swift recovery reinforces our view that Saudi unemployment will decline to 12.1% by the end of 2021,” the Jadwa report said.Unemployment among young people decreased from 34.2% in Q3 2020 to 28% in Q4. Among men it declined from 7.9% to 7.1, while for women it was down from 30.1% to 24.4%, across the same period. According to GaStat’s numbers, 200,000 new private sector expatriate work visas were issued in Q4, compared to 46,000 in Q3. The sharp increase was largely due to a big increase in female expat visas, which increased by 181,000 in Q4 compared to just 4,000 in Q3.Across the various sectors, public administration and accommodation and food services recorded the largest increase in employment among Saudi nationals and expat workers. “That said, with the ongoing roll-out of vaccines in the Kingdom, we are expecting a more vigorous economic recovery in the second half of 2021, which, along with ongoing localization efforts (such as the recentMinistry of Human Resources and Social Development decision to raise the level of Saudization in shopping malls, supermarkets, restaurants and coffee shops), will help create more employment opportunities for citizens,” Jadwa said in its report.