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Kuwait experiences the highest drop in employment in 30 years

The National Bank of Kuwait (NBK), the largest bank in the country, issued a report that exhibits the highest annual job losses in the last 30 years.

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Based on the report, the employment rate increased for Kuwaiti citizens while it has seen a dramatic drop in the employment rate of jobs that are reserved for expatriates. This situation appeared largely due to efforts to nationalize workforce within the country, termed as Kuwaitization. Comparing the public sector to private, the former performed relatively good experiencing a 2.7 percent growth, the report added. It is also stated that this sharp decline in the annual employment rate mostly appeared as a result of the repercussions of the coronavirus pandemic.

The report also detected a 5.2 percent decline in population in Kuwait last year, which is also the highest in the last 30 years. Given the fact that Kuwait lost approximately 130,000 foreign workers in the last year, this percentage seems reasonable. Considering the fact that more than a third of the Kuwaiti population is under the age of 15, the report also underlined the significance of creating new jobs for this upcoming population.

It is also predicted that the trend in the decreasing of expatriates’ number will remain on the agenda for the coming period in the light of envisioned legislative regulations, including residency law, and the policies of nationalization of the workforce.

Kuwait is experiencing one of its most severe economic crises due to the effects of the coronavirus pandemic as well as the sharp decline in oil prices, which is accepted as the main income source of the government with a share of more than 90 percent.

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