Question

Which one of the four category of unemployment that can fits or describe the Saudi labor market and explain why?   

Answer 1

Structural unemployment is best to explain about the unemployment in Saudi labour market. The country is wealthy but there is high rate of unemployment among the young generation. The whole country depends on single source like oil, and depends mainly on imported labours to meet their requirements of economic development. There is a paradox between high wealth and high unemployment. This problem emerged from the transformation period from an agricultural to an industrial society. The Saudi government used an expatriate employees scheme to attain economic growth. There is a strict religious control over the people. The education system and labour market were aligned.  
The alignment towards education system makes the lowering number of skilled people in the industrial society. The structural unemployment means the loss of employment due to structural change like transformation from agrarian to industrial economy. According to recent statistics, the unemployment rate in Saudi increased to 5.70 percent in the fourth quarter of 2019. On the other hand, frictional unemployment also occurred in Saudi market. It is the situation were the workers lost their jobs and finding another work. Saudi unemployment measure the number of unemployed people who are searching for job. Most of the worker in Saudi market was imported labours.