INSIGHT PAPER

TAKAMOL ADVISORY UNITOCTOBER 2017

Regional & Sectoral Employment Rates in Saudi Arabia

F e b r u a r y 2 0 1 7

O C T O B E R 2 0 1 7

INSIGHT PAPERRegional & Sectoral Employment Rates in Saudi Arabia

INSIGHT PAPER

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The unique and different economic challenges encountered by each region in Saudi Arabia necessitate a deep understanding and analysis of the structure of each region’s workforce. The unemployment rate amongst Saudi nationals varies significantly between the 13 regions in Saudi Arabia. These differing regional trends demonstrate that more localized, regional solutions are often required if the challenges of each region are to be effectively overcome. The information detailed below has been drawn from data from the Labor Force Survey published by General Authority of Statistics (GASTAT), in the 2nd quarter of 2017 and is current as of July 1st, 2017.

Introduction

As illustrated in the Figure below, the unemployment rate for Al-Jouf is the highest in the country standing at 26.8%. Assir became the lowest where the unemployment rate is 8.1% Riyadh is close to the Kingdom’s Q2 unemployment rate of 12.8%

Regional Unemployment Rates

Al Jouf Qassim MadinahEastern Province

Al BahhahNajranJazzan

18.2%

10.2%

12.8%

26.8%

9.80%

15.8%

22.2%

The total unemployment rate for Saudis has increased by 0.1% to 12.8% in Q2 (compared to 12.7% in Q1). The unemploy-ment level among Saudi males has increased to 7.4% in Q2 compared to 7.2% in Q1, while the unemployment rate for Saudi females also increased - to 33.1% from a rate of 33% in Q1.

Moreover, the total unemployment rate for Non-Saudis has increased to 0.9% in Q2 compared to 0.7% in Q1. The unemployment among Non-Saudi males has increased to 0.7%% in Q2 compared to 0.5% in Q1, while the unemployment rate between Non-Saudi females also increased to 3.3% compared to a rate of 2.1% in Q1.

Furthermore, the total unemployment rate (Saudi and non-Saudi) in the labour market has increased to 6% in Q2 compared to 5.8% in Q1. Unemployment among males has increased to 3.3%% in Q2 compared to 3.2% in Q1, while the unemployment rate for females also increased to 22.9%, from a rate of 20.3% in Q1.

Finally, the unemployment rate for females increased at a higher level than that of males between Q1 and Q2 of 2017.

The Total Unemployment Rate Q2 vs. Q1

Q2 Q1

Unemployment Rate Q2 vs. Q1

Female Male

12.8%

North Border

Riyadh

Regional Unemployment Rates

HailTabbukAssirMakkah

10.1%8.10%

16.1%12.9%

20.0%

The Labor Force Survey report indicates that between Q1 of 2017 and Q2 of 2017 that the number of employees who are subscribed with GOSI has decreased in all sectors. The most noticeable decrease has occurred in two specific sectors: Agricul-tural, Forestry & Fishing and Electricity, Gas & Water with a reduction rate of 1.83% compared with the previous quarter.

Hai’l came on top of list recording a decrease rate of 3.73% compared to the region’s rate from the previous quarter, followed by Najran with 3.63% decrease rate in the Agricultural, Forestry & Fishing sector, while Tabuk had a slight decrease rate of 0.26%. It is noticed that this particular sector did not record any increase in the employment rate in any of the 13 regions in the Kingdom.

The information detailed below is intended to highlight the changes of each of the 13 Saudi Arabian regional labor markets, and the major drops within each region.

In the second quarter of 2017, there was a decrease in the number of employed persons in all of the 9 main sectors within the Kingdom.

Transportation and Communication has decreased by 3,616 employees, Trade decreased by 13,015, Construction decreased by 61,855, Mining and Quarrying decreased by 2,265, Social & Collective Services decreased by 3,071, Agriculture, Forestry, and Fishing decreased by 1,921, Manufacturing decreased by 5,773, Electricity, Gas and Water decreased by 2,098, and finally, the Financial and Insurance Activities sector decreased by 4,926 employees.

The Transformation of the Employment Market

In Summary

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51.6%

Tabuk Hai’l

Agriculture, Forestry & Fishing Sector

Najran

0.00%

-5.00%

The Electricity, Gas & Water sector also saw a decrease in the employment rate, with a reduction of 1.83% between Q1 and Q2.

Tabuk was the region worst affected, recording a decrease rate of 5.7% compared to the region’s rate from the previous LFS report, followed by Hai’l with 3.18% decrease rate. Jazan fared better showing a

slight increase rate of 0.38%. Furthermore, Al-Jouf retained its rates at the same level as the previous quarter. It is worth noting that the Electricity, Gas & Water sector experienced a decrease in employment levels across 11 of the 13 regions in the Kingdom, with only Al-Jouf and Jazan remaining the same or higher.

Tabuk Hai’l

Electricity, Gas & Water Sector

Jazan

0.00%

-3.00%

Al Jouf

-6.00%

Social & Collective Services sector recorded a minor decrease compared to its rate from the previous quarter. The rate decreased by 0.35%.

Makkah recorded a decrease of 2.65% compared to the region’s rate from the previous quarter while Riyadh experienced a 1.28% increase rate. Jazan saw an increase of 1.18% in this particular sector.

Riyadh Makkah

Social & Collective Services Sector

Jazan

5.00%

-5.00%

0.00%

Overall Sectoral Rates

0.00%

-2.00%

Financial and Insurance Activities

Electricity, Gas and Water

ManufacturingAgriculture, Forestry and

Fishing

Social and Collective Services

Mining and Quarrying

ConstructionTradeTransportation and

Communication