The Causes of Unemployment in Saudi Arabia - Research Paper Example

Unemployment in Saudi Arabia (Eastern Province): An analysis using the Soft System Method Introduction The situation of unemployment in Saudi Arabia is analysed in this paper using the Soft System Method (SSM). This is a systemic method that can depict information about a situation sequentially; in a way that can help us to make better sense of it, understand the problems involved, and form the basis of strategies to deal with it. Essentially, it provides a conceptual framework but with strong analytical potential. This makes SSM particularly effective for enabling people to reflect on all aspects of the real situation, in and in addressing all issues involved in a complex situation in order to tackle the underlying problems. This method also facilitates considering a range possibilities for action that may not have been apparent otherwise. It can do this because it points out important relationships, for which we can then devise and implement policies to better manage them. The process of diagramming helps to visualise and explore a problem. A spray diagram however, can usefully summarize a complex situation, and a system map can also show important relations and connections between different systems and interests. A system map “shows components of the system and environment at a point in time” (OU, 2010). This helps to structure the situation. The multi-cause diagram is best able to show the causes and effects behind the unemployment situation. A log frame allows us to then define and explore the goals, purpose, activities, and outputs of the project on the basis of certain assumptions in each phase. A stakeholder analysis helps to identify all the important parties involved or affected by the situation. All these types of diagrams are used in this project in exploring the situation of unemployment in Saudi Arabia. Summary Both graduates and undergraduates face difficulties in finding jobs and some are not able to find jobs at all. Furthermore, some of those that do find jobs may end up being in environments that fall short of their expectations, or do not utilise their potential. Some would even accept lower wages because of the scarcity of jobs available. Depression and hopelessness is also common during these times not only among those who do not find jobs but also those who do. Moreover, this problem is not confined to the public sector, as it is the same in the private sector. Also, the problem is compounded by the increasing population. There are little if any opportunities available in the public sector so those who are already in this sector are clinging to their jobs in the fear that they could easily lose them. The private sector is no hope either, as it usually offers lower wages to Saudi citizens preferring to attract foreign expertise instead (Adel & Masiur, 2009). Training in the majority of Saudi organizations is usually poor. They tend to rely on existing experienced staff instead of inviting new staff because the latter would require training to become familiar with the work requirements. This problem is felt acutely, for example in any work involving the use of the Internet (Sadiq et al., 2006). Another problem is the greater reliance on technology wherever possible, as this becomes an excuse to reduce the number of human workers just because it can often work faster and without making any errors. In terms of the impact of unemployment on society in general and also the environment, problems usually involve younger men who are left with no alternative activities but to engage in crime or other antisocial behaviour. This further weakens the fabric of society because it has destructive consequences. Even generally, people tend to become more careless, less mentally active and lose their morals. In particular, anger is displayed arising from the frustration of having no income, and this is directed at others in the society and the environment. Of the economic impacts of unemployment, there tends to be a greater flow of wealth out of the kingdom as compared to being circulated within due to foreign employees sending remittances to the home countries. Furthermore, Saudi citizens have fewer opportunities and their spending power is drastically weakened. This leads to pressures on the provision of health care, education and other welfare in the kingdom. Log frame To deal with this problem situation, a framework has been defined which breaks down the project into sequentially manageable phases, namely goal, purpose, output and activity. The activities are based on the outputs, which derive from the purpose that fulfils the goals of the project. Each of the four phases rests on certain assumptions, which are given in the table below together with description of each phase as to what they will involve. Phase Assumption Goals Explore Saudi Arabia’s unemployment situation Decide whether the problem can be solved in the short or long term The long-term developments and solutions are more effective to deal with the unemployment problem. Purpose To verify whether the cause of the unemployment is the government or citizens To devise a strategy to deal with the problem Verifying the cause of unemployment is producible; and solutions are to be evaluated for verification. Outputs Scale of problem Government solutions Opinions of employed and unemployed people The research is possible; government plans are already available, and the people are cooperative in providing useful information. Activities Research and question the public and people in the employment ministry Visit of private and public sectors to build an information system Each group requires a specific format fo.r questioning; visits can be organized and will be welcomed; information is available on the history of unemployment in the kingdom Spray diagram The spray diagram shown below summarises the complex unemployment situation in Saudi Arabia. System map The system map below shows the relations and practices in the unemployment situation. Besides the government, there are also other organisations with interest in the unemployment situation, and they all could have dealt with the situation earlier. If we examine these interests, the system map can then help in identifying the different stakeholders. Multi-cause diagram The problem of unemployment in Saudi Arabia is worsening, and the employment ministry has been unable to solve the problem or even reduce it. In the short-term, we find many graduates and undergraduates with no jobs, and in the long-term, people are likely to suffer if the problem persists. Although the employment ministry has attempted to solve the problem by implementing several policies, they have largely been ineffective. As an example, it set a requirement for the private sector to employ at least 25% Saudis and this was to be monitored annually, but organizations got round this requirement by providing lists of employees with fake names of Saudis. The geography of Saudi Arabia is also problematic. It has huge areas of desert and small towns, and people tend to migrate to larger cities such as Riyadh, Jeddah and Dhahran (Malecki & Ewers, 2007). This exacerbates the unemployment situation. Also, the government is not entirely to blame for not doing enough and providing people with jobs. People and their attitudes also contribute to the problem. For example, some new graduates refuse to work in certain outdoor job sites. They prefer instead to work in offices where the workload is less, but not all organizations can provide this kind of privilege for all their staff. Thus, they are compelled to offer some less attractive types of jobs to foreigners. (Adel, Masiur & Yusuf, 2006) The multi-cause diagram below shows the main causes and effects of the unemployment situation in Saudi Arabia. For example, we see that those graduates and undergraduates who are compelled to accept any job when their desired job is unavailable, are likely to be dissatisfied. They may then engage in deplorable mannerisms to cope with their own situation and eventually lose their job. This increases the unemployment further and they find themselves in the same situation as those who did not even accept any job. This exacerbates the economic problems of the kingdom and creates social and environmental problems. Analysis method diagram The analysis method diagram illustrates the procedural steps of SSM. Each of these is described in turn in further below. 1. Being aware – The unemployment situation in Saudi Arabia is evident to everyone. However, sensing the problem in a systematic manner allows us to point out the core issues involved. At this stage, the methodologies to be applied are selected together with the SSM, which then leads to engaging with the situation. 2. Engaging – This step helps to better understand the situation and the activities of researching, visiting and enquiring. These activities are useful because they provide the outputs of the project, which address the scale of the problem, and the plans and opinions that exist to explore possible solutions. The outputs fulfil the purpose of the project, which meets the original goals. 3. Contextualising – Engagement makes contextualising the problem possible so that decisions can be made such as concerning what alternative solutions provide for. Having defined the situation and carrying out the research, the possible solutions can be conveyed to the concerned authorities for devising appropriate policies. If these policies are approved, they can then be implemented and monitored for modifications if necessary. 4. Managing – This is expected to take a long time, but in the short-term, some results should be noticeable that would help in monitoring the effects of the policies implemented and to modify them accordingly. The stakeholder analysis shows the different stakeholders who have a stake or interest in the situation. Stakeholder analysis The main stakeholders identified as having interest in the unemployment situation in Saudi Arabia are represented in the diagram below. Each of these will be described in turn further below. Government of Saudi Arabia – The government defines the policies for employment for all other parties including the public and private sector organizations and the Ministry of Employment. It also establishes goals to be achieved by the Ministry of Employment. Presently, it seeks to limit the number of foreign employees so as to give greater employment opportunities for its own citizens. Ministry of Employment – This ministry gathers various demographic statistics of the population such as numbers of graduates and number of unemployed. It also places plans for implementation by its employment offices, and reports to the government on the scale of the problem and any signs of improvements. The Employment Office – This office deals with vacancies in private sector organizations, handles applications from the unemployed, and uses a computerised system. It has branches all over Saudi Arabia including all major cities. Public sector organisations – These have a limited role in affecting the employment situation, but could do more by helping to implement government led policies for tackling unemployment. Private sector organisations – These mostly prefer foreign expertise rather than Saudi graduates who may need to undergo workplace training. Socially concerned institutes – These are affected due to the social consequences, especially of young men, of being out of work and having nothing else to do but engage in antisocial behaviour. This could potentially have disastrous consequences for society; therefore these institutes have an important stake as well. Environmentally concerned institutes – As with socially concerned institutes, these are also affected by the situation, especially from cultural changes. Also, increases in unemployment leads to more people on the streets that are likely to be careless towards both the built and natural environment. Unemployed graduates – According to several researches, there are an enormous amount of graduates out of work and in desperate circumstances. A proportion of these do accept lower quality jobs, but as the jobs do not match their qualifications or abilities, the situation disturbs them emotionally and mentally. Unemployed undergraduates – As with graduates, these are also likely to be depressed although to a lesser extent. They are also more likely to accept menial jobs than graduates. Ethicality statement The situation of unemployment in Saudi Arabia is very serious and it can continue to have serious long-term consequences for future generations of Saudis. This situation deserves equally serious attention. Everyone can contribute by studying the problem, analysing it and proposing solutions to at least control it or reduce the scale of the unemployment. There is also a problem of nepotism in the country (Mustapha, 2007: 96). The writer is aware of some people who are employed but are not qualified or otherwise deserve to be. They were given their positions solely due to their connection with the employer or being favoured for some other reason. This is an unfair practice for those who may be more able or qualified but were rejected for the vacancy, especially during a time of widespread unemployment, but it would require a cultural change to eliminate it. Another cultural issue mentioned above is that of not accepting jobs that are less prestigious than their expectations. This also only makes the problem worse. For situation analysts and policymakers, these points highlight the need to consider all stakeholders, and tackle all aspects of the whole problem. Conclusions The research has shown that there are three main causes behind the present unemployment situation in the Kingdom of Saudi Arabia. Firstly, the government has been unable to offer jobs to graduates and undergraduates to fill vacancies. Secondly, the private sector’s preference for foreign manpower over Saudi citizens even if they are graduated. Thirdly, it is the attitude of Saudi graduates who like to see themselves in prestigious roles in places like offices and with higher pay rather than take the effort to build their career and work their way upwards starting from less attractive and lower pay jobs. On the other hand, in certain cases such as security related jobs, it may be appropriate to employ people who are more experienced than someone who is freshly graduated and will require some training. The government together with the Ministry of Employment no doubt has the biggest role to play in dealing with the unemployment situation. This is more so given that there are insufficient vacancies in the public sector and due to attitudinal problems such as nepotism. Furthermore, the government needs to strengthen its regulation of the private sector, which tries to circumvent existing policies, and to implement policies that remain only at the discussion stage but are not taken further. The number of people unemployed is not huge when compared to many other countries, but it does need to overcome the laxity to solve the problem and follow the examples of successful policies in other countries around the world. Client report The major aim of this project is to solve the unemployment situation in Saudi Arabia, or at least reduce the number of people unemployed, as there are always likely to be a proportion of people unemployed at any time. There is no shortage of ideas as this study has shown. The first step though is to identify and know more about the problem. Knowing the sources of the problem, is then enough to at least begin finding possible solutions before examining the potential of the more useful ideas. The focus nonetheless, should be on the government, the Ministry of Employment, the public and private sectors, and the public in general. The government for its part can for example, prescribe mandatory conscription in its army for the unemployed. This would at least provide young men with some useful activity to occupy themselves with, and prevent unruly behaviour on the streets. This policy alone could therefore improve the social environment. Some of these jobs could be made permanent if needed. At present, many applicants to the military are refused. Besides the military and construction, the transport sector is also in need of development. Unemployed people can be engaged in improving the kingdom’s transport infrastructure. This includes increasing the number of buses and taxis in the country. Better public transport will also lead to a cleaner environment and less congestion due to fewer cars. The Ministry of Employment does not work independently of the government, and it requires its approval before implementing any drastic measures. This is actually an obstacle, which prevents speedy progress from being made. The first need is to gather up-to-date statistics of the current unemployed population in order to make known the precise scale of the problem. This data should include people’s level of education and extent of experiences. The Ministry of Employment could then open up vacancies in the public sector immediately to alleviate the problem. This ministry is renowned for being slow to do anything, so this would be a great opportunity to fill vacancies that are known to exist, and to make a big impact for perhaps around 30% of the unemployed population. As for the private sector, it has its own agenda, but the habit of employing non-Saudis when Saudi citizens are available for a particular work needs to end. The government could help to bring about this change by for instance, making it more expensive or legally difficult to invite foreign expertise. It should also prevent the circumvention of devising false lists of employees mentioned earlier. The rate of pay for Saudi citizens must not only be disclosed but also compare favourably with the rates for others. It must be sufficient to motivate Saudis to take on the jobs including what they might consider to be menial jobs. The Ministry of Employment can be given responsibility for monitoring and enforcing these policies. There should also be procedures in place in case employees need to complain such as for unfair dismissal. Following on from the idea of engaging unemployed people in various useful and productive activities, they can also be directed to make good use of the huge areas of under-used land, i.e. the desert. For example, there is scope for building factories, shopping malls, etc. Also, the government needs to open its economy more to foreign investment. Foreign companies can also be invited to operate in the kingdom but on the condition that they employ a fair amount of Saudis. The country could also benefit in this way from the technology and training. The people who are unemployed should also cooperate in dealing with the situation by not losing hope and adopting the right attitudes by accepting any reasonable work that is offered to them. They gain in any case through experience and at least some income that is better than nothing. These and other such cultural changes alone could go a long way to brining about significant changes in Saudi society and improve its economic conditions in terms of unemployment. Project Log The project log is divided into three periods as shown in the table below. Period Description First This involved the proposals of research subjects and selecting the issue of unemployment in Saudi Arabia to research on. Initially, brain storming was used to generate ideas to ease the situation of unemployment and identify avenues for research. A spray diagram was then drawn to summarise the problem situation and the ideas that were generated. This was followed by a system map and a description of the problem and method to tackle it. The hard system method was used. Second Under the hard system method, a logical frame was constructed to identify the activities needed to be carried out to tackle the situation of unemployment. These can then help in providing the outputs needed. The purpose was defined based on the outputs already obtained. The underlying assumptions were also made known. The log frame points out what needs to be done, where to gather the information from, and identify the processes involved. The methodologies were also clarified in this period using the soft system method for example. Third In this period, the soft system method was used to apply in solving the problem in accordance with the logical learning cycle. Some of the plans are already being implemented because the unemployment problem is not new in the kingdom. Nonetheless, the project was introduced and summarised, and it considered improvements that can still be made. Justification for the method was also given. A draft of the final report was prepared, and this period also involved conducting the stakeholder analysis and writing the ethicality statement. The original report has been modified accordingly. Overall summary Several stages were involved in this project, and points were considered at each stage keeping in mind the subject chosen. All the necessary methodologies were described, and this enhanced understanding of the complex situation. It also allowed reflection on the methods used. Furthermore, working through the stages helped to connect them together to build a synthesised picture of the unemployment situation. This approach is in line with the general course aims, which seek to develop systemic thinking by learning to analyse a problem, gather relevant information, and find the most appropriate solution. Each diagram clarified certain aspects of the situation, so they were all complementary. Moreover, the final requirement to explain the method selection criteria and evaluate progress was a good opportunity to review the entire project and make fine tunings. References Adel S. Al-Dosary; Masiur Rahman, Syed & Yusuf Adedoyin Aina. 2006. A communication planning approach to combat graduate unemployment in Saudi Arabia. Human Resource Development International, Vol. 9, Issue 3, pp. 397-414. Adel S. Al-Dosary & Masiur Rahman, Syed. 2009. The role of the private sector towards Saudisation (localisation). International Journal of Arab Culture, Management and Sustainable Development, Vol. 1, No. 2, pp. 131-143. Malecki, Edward J. & Ewers, Michael C. 2007. Labor migration to world cities: with a research agenda for the Arab Gulf. Progress in Human Geography, Vol. 31, No. 4, pp. 467-484. Mustapha K. Nabli. 2007. Breaking the barriers to higher economic growth: better governance and deeper reforms in the Middle East and North Africa. Illustrated edition. World Bank Publications. OU. 2010. System maps. Open University materials. http://systems.open.ac.uk/materials/T552 [Accessed 21 May 2010]. Sadiq M. Sait; Khalid M. Al-Tawil; Syed Sanaullah & Mohammed Faheemuddin. 2006. Impact of Internet usage in Saudi Arabia: a social perspective. King Fahd University of Petroleum & Minerals. http://faculty.kfupm.edu.sa/coe/sadiq/research/journals-pdf/J_Sait.IJITWE.Dec.2006.pdf [Accessed 21 May 2010]. Read More