Question

Discuss and use your own words “Saudi Government support for the private sector employees during COVID-19 pandemic has resulted in reduced layoffs”.

Answer 1

The COVID-19 Pandemic has impacted worlwide and , as a result , countries are expereincing high unemployment rate , diminshed productivity and growing national debt.Those already living in poverty are in danger in falling in extreme povety . A ministerial decision in Saudi Arabia allow private sector companies to cut salaries by up to 40 percent with the possibility of terminating contracts given the difficult economic circumstances surrounding the coronavirus pandemic.The new regulations would also allow companies to terminate employee contracts after 6 months of the coronavirus pandemic period.

The new regulation include a provision that helping to pay workers’ wages or exemption from government fees, stressing not to resort to the termination of the employment contract.The decision also specified that employees will receive their salaries if they are on annual leave within the stipulated six-month period.

Women who are employed in the private sector are particularly vulnerable. Private sector employment comprises a significant share of all employed females. However, they are concentrated in a few sectors and occupations such as retail and education which have been hit hard by COVID-19. As a result, female employment in these sectors is expected to face significant declines. On the other hand, women also work in the health and social work activities where they are on the front line of the crisis. The Saudi unemployment rate was largely impacted by the effects of the COVID-19 pandemic on the Saudi economy .The world’s largest oil exporter is facing a deep recession after the COVID-19 pandemic .The new coronavirus hit both the oil and non-oil sectors .
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