Standing Before the Economic Fork in the Road
14 Oct 2008 in Employment
Alaa Al-Mizyen is our Youth Ambassador from Jeddah, Saudi Arabia. She is currently a student at Dar Al-Hekma College where she is majoring in banking and finance.
For some time, I was almost convinced that we were all on the brink of a recession, given that the global economy seems to be treading close behind recent financial turmoil in the United States. As a Saudi student preparing for a career in the business sector, I wondered what that meant for me and the swelling population of youth in the Middle East. I realized that a global recession would eventually take its toll on employment rates and personal income, making regional efforts toward economic diversification and development less meaningful. With financial leaders alternating between predictions of a global financial meltdown and a return to a balanced economy, much of the world now finds itself at an economic fork in the road. Here, I try to ascertain how this current crisis will affect overall employment issues in the Saudi community.
One of the biggest challenges Saudi youth face is marketing themselves for employment. Studies have shown that approximately 44% of the nation’s jobless population are men and women aged 20-24 [1]. As globalization continues to pick up momentum, the Saudi private sector has begun to realize how critical it is that the youth be on a competitive edge when entering the global job market. Global trends have, in turn, forced the private sector to not only train graduates for the local labor market but to contribute to global labor market expansion.
Further, the 7th Human Resources Strategic Development Conference held in Dammam last May explored issues of youth development and has been ushering business leaders toward providing consistent and up-to-date training programs for young graduates, thus creating greater employment opportunities. The Saudi government, in answer to the unemployment issues, has established the Human Resources Development Fund (HRDF), whose mission is to help create at least 20,000 jobs a year through training programs offered by large private companies. The HRDF has signed deals with prominent companies such as Saudi Business Machines (SBM) and Al Safi Danone (ASD) to provide technical and vocational training for young graduates which will hone their skills and provide them with greater job opportunities.
So, as I stand before this fork in the road with nothing but a bachelor’s degree in the works, I am reassured by the Kingdom’s eighth 5-year development plan (2005-2009) that employment issues are being confronted and worked through on a daily basis. The work force as a percentage of total manpower is expected to increase a total of 2.2% between 2005 and 2009, with an increase in women's employment estimated to reach 3.9% by the end of 2009 [2]. That said, I assume I shall be in office, happily employed, within less than a month of my graduation in 2011.
[1] “Comment and Analysis: Saudi Arabia needs to tackle unemployment among youth.” Gulfnews.com. http://www.gulfnews.com/business/Comment_and_Analysis/10197633.html
[2] Saudi Arabia’s 8th 5-year Development plan (2005-2009)
From Diana on 14 October 2008, 09:45
Alaa - Thank you for sharing your optimism with us. Do you think that the current financial market turbulence will have any impact on the demand for oil from countries such as Saudi Arabia? There is an interesting report from Reuters on this topic today:
http://www.reuters.com/article/americasDealsNews/idUSTRE49D37L20081014