Tuesday, June 10, 2008

Youth Bulge and Unemployment

The Financial Times published a report about the youth bulge and unemployment in the Arab world. One part was particularly troubling to me:

The higher rates of annual growth – more than 5 per cent region-wide but nearly double digits in some Gulf states – have started to generate jobs, with regional unemployment estimated to have dropped to about 12.7 per cent. Yet anxiety over youth unemployment remains the most nagging concern as experts find that new jobs are going to foreign workers in the thriving construction industry or tend to be in the informal sector, leading to seasonal rather than sustainable employment.
“There is a boom in the region and youth unemployment is benefiting but the kinds of jobs created, especially in non-Gulf countries, are not necessarily the kind of jobs we need,” says Tarik Yousef, dean of the Dubai School of Government and an expert on youth employment. “They are low-paying jobs, without long-term contract, without social mobility, for people in the non-formal private sector, and in sectors not high on technology.” This job creation, he says, does not fit into the aspirations of typical youth in the region, whose idea of economic security is a well-paid overnment job with tenure and social mobility.


I cannot understand, when unemployment rates are well over 10 percent, why construction and other sectors are unacceptable. I look at the poor construction workers and understand why no one would really want to do it especially in this heat, but the South Asians are breaking their backs to make a better live for someone, whether themselves or families back home. But when I go to restaurants, stores, etc. and see that expats are brought in even to man the window at the McDonald's drive through, I cannot understand the logic. This is a taboo that must be broken (and it is, little by little in some areas) if the Gulf is ever to prepare itself for life after oil and gas.

There is a place for Gulf tradesmen in the construction industry. Gulf waiters at classy restaurants. Gulf managers at fast food places. This will not only help to ease the youth unemployment problems, but will also prepare young workers for better jobs down the road. I'm not a laborer now, but I worked as a laborer during college, as well as in the service industry. I learned just how hard "hard work" can be, and I also learned what it is like to be treated poorly by arrogant customers. Both lessons served me well and the overall experiences prepared me to do well when I started a career later.

Will there be a day when the glistening new industrial cities being put together in Saudi by S. Asian labor will be manned by Saudi factory workers? There must be if the state is to survive the end of oil.

I'll close with a quote from one of Bahrain's ministers (I can't remember if it was Min. of Labor or another portfolio). He was quoted in Sharq al-Awsat and some of the local Bahraini press a few months ago (as I remember it):
"A lord in England washes his own car on Saturday, but Gulf Arab calls for a foreign worker to bring him a glass of water sitting ten feet away."

How can this taboo be broken? Or must another solution be found for employment? Please comment.

3 comments:

Muscato said...

I think one thing that's going to happen - we're seeing it already - is local women overtaking men in terms of promising employment. Women are already 40 percent of the civil service, and everywhere I turn I feel like a see a local woman either starting a business or joining one.

Talking to employers, I consistently hear that Omani women have better educations than same-aged males, and better work ethics as well. Omani men may find themselves playing catch-up!

Leo Americanus said...

I agree completely. I spoke with some people associated with the Educational City in Qatar. They've brought in Georgetown School of Foreign Service, Carnegie Mellon business, Cornell Med, Texas A&M engineering and started small programs there. I'm not certain on the female/male stats there, but at Qatar U. it is 70% female (that figure stuck) and at Ed. City it is slightly more even, but I think still in the females' favor.

The person I was talking to said that a lot of the women start off just wanting to prove that they are capable by graduating college then going into the traditional family role. However, by the end of the education, there is quite a change and many realize they have great opportunities out there. These very qualified women leave employers no choice but to increasingly rely on them, as males lag behind in attendance and performance.

Even in Saudi, since women have little opportunity for professional advancement, but can study, there are some striking examples of incredibly intelligent and highly educated women chomping at the bit to put their skills to work. In the short term, many of the women around the region may have a difficult time finding jobs at their level, but I think that as governments begin to enforce stricter measures to force domestic employment (as opposed to foreign workers), employers are going to be forced to rely on these women. I think that is a good thing. Yet, as a number of recent reports have pointed out, the educational systems in the Arab world leave much to be desired. Qatar was a case in point a few years ago, but is working incredibly hard to make changes.

Yet, not everyone is cut out for office work and a college degree. A society needs brick carriers and burger flippers too. Or else you'll never approach full employment or the optimum productivity.

Undercover Dragon said...

Good comment/post Leo.

The answer can only be through financial incentive and liberalising Omani Labour Law. If you can hire a cheap hard worker from Asia at a quarter the price, you will.