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causes of unemployment in gurlf countries - Coggle Diagram
causes of unemployment in gurlf countries
Education-Labor Market Mismatch
Graduates' degrees and skills do not match market needs
Higher unemployment among humanities graduates than technical fields
Government and private sectors prioritize technical and engineering roles
Lack of vocational and technical training programs
Education system not aligned with emerging industries and future jobs
Example: Saudi Arabia’s economic diversification favors technical graduates
Growth of Modern Technology
Automation and AI replace many human tasks, reducing job opportunities
Routine and clerical jobs, such as administrative roles, increasingly automated
Banks and other sectors use AI kiosks and chatbots instead of entry-level workers
Growing demand for digital skills and tech adaptability in youth
Potential widening of the digital skills gap
Example: UAE banks replacing tellers with AI-powered kiosks
Preference for Foreign Workers
Companies hire foreign workers who accept lower wages and job flexibility
Foreign workers dominate construction, retail, and domestic jobs
Nationals face fewer opportunities due to wage expectations and competition
Labor policies and social factors contribute to preference for expatriates
Example: Majority foreign workforce in the UAE and Qatar
sponsorship
Sponsorship laws (Kafala system) limit migrant workers’ rights and mobility
Migrant workers are tied to a local sponsor (usually their employer) who controls their visa and legal status
Workers need sponsor’s permission to change jobs, leave the country, or end their contract
This system makes workers vulnerable to exploitation and abuse, with limited legal protections
Despite some reforms in countries like Qatar and Saudi Arabia, many restrictions and problems remain
Nationals often prefer public sector jobs with better pay and benefits
Private sector relies heavily on foreign workers due to cost and flexibility advantages
Wage expectations and job preferences among locals limit their competitiveness for many private sector roles
Labor policies and social norms reinforce segregation of nationals and expatriates into different job markets
higher no. of candidates and less job opportunities
Rapid population growth and youth demographic boom cause a surge in job seekers
Economic diversification creates new opportunities but not enough to absorb all graduates
Sectoral growth focused on specific industries (e.g., tech, energy) often lacks broad absorption capacity
Increased competition leads to job scarcity and underemployment among youth