‘Encouraging nationals to work in private sector an urgent matter’

KUWAIT CITY, Oct 30: Economic reports stated that the government cannot give jobs to 70 percent of citizens who will join the labor market in the next five years, as the capacity for employment during these years is only 30 percent — ranging from 25,000 to 30,000, reports Annahar daily quoting sources. Sources said the government should support the private sector for the latter to absorb the remaining percentage, warning that the slow pace of economic reforms will not ease pressure on the State budget. Sources pointed out that encouraging nationals to work in the private sector is an urgent matter in light of the financial pressure on the public sector, which limits long-term employment due to the requirement to match the educational output with the actual manpower needs of the local labor market. Sources disclosed this step is aimed at preventing budget depletion and waste brought about by the increasing rate of disguised unemployment in many entities.

Sources stressed the need to address the imbalance between the public and private sectors in terms of employment. They also suggested the implementation of reforms that bridge the gap between the two sectors. They added the lack of achievement in this regard could lead to the inability to provide new job opportunities for university graduates. Sources also underscored the need to develop non-oil sectors in order to provide job opportunities in the private sector. They added the amendment of social benefits and labor market policies will support competitiveness, attract foreign and local investments, and reduce pressure on the employment mechanism. Sources revealed the government’s work program for the coming period is an ambitious agenda towards the implementation of financial and structural reforms. Sources affirmed that measures aimed at improving the business environment will ensure positive response to reforms.