Despite significant investments in higher education and nationalization policies, young graduates in the Gulf Cooperation Council (GCC) countries—particularly Saudi Arabia, Oman, and Bahrain—continue to face challenges in securing employment. This article examines the current landscape, contributing factors, and potential pathways forward.
Youth Unemployment: Current Statistics
- Saudi Arabia: In 2024, the youth unemployment rate (ages 15–24) stood at 13.77%, a decrease from 15.96% in 2022.
- Oman: The youth unemployment rate was reported at 13.92% in 2024, showing a slight decline from 14.07% in 2023.
- Bahrain: As of 2023, the youth unemployment rate was 5.82%, a marginal decrease from 5.88% in 2022.
Contributing Factors to Youth Unemployment
- Skills Mismatch: Educational institutions often emphasize theoretical knowledge over practical skills, leading to a gap between graduate competencies and labor market requirements.
- Private Sector Preferences: Employers may favor expatriate workers due to factors like lower wage expectations and perceived work ethic, making it challenging for local graduates to compete.
- Public Sector Saturation: A traditional preference for public sector employment among nationals has led to oversaturation, limiting available positions for new graduates.
Nationalization Policies: Saudization and Omanization
Saudization (Nitaqat System): Implemented to increase the employment of Saudi nationals in the private sector, the Nitaqat system classifies companies based on their compliance with Saudization quotas. While the policy has led to increased employment in sectors like transportation and manufacturing, challenges remain in ensuring that positions filled by Saudis match their qualifications and career aspirations.
Omanization: Oman’s strategy focuses on replacing expatriate workers with trained Omani personnel across various sectors. Recent initiatives include specialized training centers and financing opportunities for new projects, particularly in the logistics sector. These efforts aim to align workforce skills with market demands and reduce youth unemployment.
Constructive Pathways Forward
To address youth unemployment effectively, GCC countries might consider the following strategies:
- Curriculum Reform: Align educational programs with industry needs by incorporating practical skills, internships, and vocational training.
- Entrepreneurship Support: Encourage and facilitate entrepreneurship among youth through access to funding, mentorship, and streamlined regulatory processes.
- Private Sector Engagement: Foster partnerships between educational institutions and private companies to ensure graduates are equipped with relevant skills and experiences.
- Labor Market Transparency: Develop comprehensive labor market information systems to guide students and job seekers in making informed career choices.
By implementing these strategies, GCC countries can enhance employment prospects for young graduates, ensuring that investments in education translate into meaningful career opportunities and economic growth.
