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Friday, 11 December 2015 16:57

High unemployment, poverty rate in Saudi Arabia

High unemployment, poverty rate in Saudi Arabia

A new report released on Friday has provided a gloomy outlook for Saudi Arabia’s economy within the next 15 years.

According to Press TV, the report that has been released by the global consulting firm McKinsey says the jobless rate in Saudi Arabia could exceed 20 percent by 2030.

 

It also says the real household income in the Arab State could plunge by another 20 percent over the same period.

Even if Saudi Arabia creates more private sector jobs for its citizens, there would still be a shortfall of 1.5 million jobs by 2030, according to the report titled “Saudi Arabia beyond oil: The investment and productivity transformation”.

Unemployment is one of the critical challenges that could affect Saudi Arabia’s oil and financial resources, said the report.

“The country can no longer rely on oil revenue and public spending for growth, in the face of a changing global energy market and a demographic transition that will significantly increase the number of working-age Saudis by 2030,” it added.

At least 4.5 million new working-age Saudis are expected to enter the labor market in fifteen years. That requires the country to create three times the number of jobs it provided during the 2003-2013 oil boom, added the report.

By 2030, Saudi Arabia could accumulate a debt of about 140 percent of the country’s GDP as a result of unemployment and the pressure from weak oil prices, RT reported.

Saudi Arabia is currently facing a budget deficit for the first time since 2009. It comes on the back of sliding crude prices, with oil sales accounting for almost 80 percent of the country’s revenues.

SS

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