According to the projection released by Jadwa Investment Company, as many as 1.2 million expatriates are expected to leave the Saudi Labor Market by the end of 2020.
Despite the exit of a huge population of expats from Saudi Arabia, the unemployment rate among Saudis will remain unchanged at 12% by the end of 2020.
Most Affected Sectors
The report published by Jadwa Investment Company states that the most affected sectors are going to be hospitality, food services, administrative and support activities including rent and lease activities, travel agencies, security, and building services.
Although some relaxations have been endorsed overall in the economy, some sectors would not be coming back to their full swing soon such as travel, hotels, restaurants, tourism, and entertainment sectors.
Unemployment Insurance Support
The report states that the unemployment insurance support (SANED) scheme will allow Saudis to retain their jobs in the private sector. So far, around SR 2.4 billion has been paid to 450,000 Saudi beneficiaries.
Opportunity for Saudis
With the departure of a large number of expatriates (1.2 million) from Saudi Arabia in 2020, there is a great opportunity for Saudis to secure these jobs. As the government has suspended issuing new visas for foreigners, these Saudis can come forward and grab these jobs.
Source: Saudi Gazette