JEDDAH, 17 August 2006 — Labor Minister Ghazi Al-Gosaibi yesterday attributed the increasing dropout of Saudi employees from private companies to low salaries, strict work conditions and lack of job security.
“Saudis prefer to have comfortable jobs having less hours and ensuring job security,” the minister told reporters after opening an automatic employment system at King Fahd Employment Center here.
Saudis often find it difficult to acclimatize with workplaces in the private sector where expatriate workers show their readiness to work for long hours and for comparatively lower salaries.
“We are now passing through a phase of Saudis getting acclimatized with the private sector. According to the work contract, a company can insist on a Saudi worker that he pay the cost of training if he leaves before a specific period,” the minister explained.
A recent study conducted by the Manpower Development Fund (MDF) said that Saudi workers had complained that low salaries, long working hours and job security concerns were driving them away from seeking jobs in the private sector.
Among the 8,111 Saudi jobseekers who took part in the survey, 3,738 said low salaries were the main obstacles preventing them from taking up jobs with private companies. But 2,806 said they feared job insecurity while 1,667 complained about long working hours in private firms.
Al-Gosaibi did not favor the idea of fixing salaries for Saudi workers. “Salaries will be decided in accordance with supply and demand and qualifications and the experience of workers,” he said while urging Saudis seeking higher salaries to improve their skills.
However, he pointed out that his ministry had reached an agreement with businessmen that the lowest salary to be paid to a Saudi should be SR1,500 irrespective of his qualifications.
Al-Gosaibi said his ministry would coordinate with the Education Ministry to include vocational topics in all levels of studies in order to encourage students to take any job. “General education is increasingly heading to become market-oriented,” he added.
The minister also disclosed plans to establish 40 new technical institutes and vocational training centers for boys and girls. “We expect that more than 400,000 students will join these centers and institutes within the next five years,” he said.
He also hoped that Saudi banks would offer more employment opportunities for Saudis after providing them with necessary training.
The automatic employment center, which is a kind of databank, allows a jobseeker to find out new job opportunities in the private sector.
“We are depending on the private sector to employ the largest percentage of Saudis in the coming period. Saudization in the government sector is almost complete,” he said.
The minister emphasized the private sector’s role as a major employer that offers a wide range of job opportunities.
According to the manpower fund’s study, private companies have started offering good salaries to Saudi engineers and accountants. Specialized graduates get salaries ranging from SR3,589 to SR9,244 in industrial, contracting, tourism, agricultural, educational, investment, service and health sectors. At the same time, non-specialized diploma holders received a lower salary of between SR3,092 and SR4,776 while Saudis holding technical diplomas were given a salary that ranged from SR2,900 to SR3,800.
