JUL 9, 2018 (BE2C2): Wages for high-skilled labor across the Middle East are forecast to surge in the coming period, as talents appear to be lacking, a new study by Korn Ferry said.
The expected increase in salaries in the UAE and Saudi Arabia are likely to have strong effect on the media, technology and telecommunications sectors, the study titled “The Salary Surge” indicated. It forecast that these two sectors would be the most impacted with a potential wage premium of $1.1 billion and $2.4 billion, respectively, by 2030.
In Saudi Arabia, salaries may increase by more than 17%, which could add around $33.6 billion to payrolls, the study showed.
In the UAE, wage growth for in-demand workers may add about 9% or $5.9 billion to the country’s overall payroll by 2030.
“This is a challenge facing both corporate and government leaders planning for economic success in the new economy,” regional director at Korn Ferry Products MENA Harish Bhatia stated.
Bhatia further highlighted that in the public sector, “the longer-term solution starts in the education sector and how we are preparing our students with new skills more adaptable to the future of work.”
Expat exodus fails to generate employment for locals in KSA
Meanwhile, expats exodus has failed to generate employment for Saudi citizens — nearly 234,000 expats lost jobs in the Kingdom in Q1 2018.
According to local daily Saudi Gazette, the General Authority for Statistics (GaStat) has stated that more than 234,000 expats have left the Kingdom in the first quarter of this year at a rate of 2,602 people daily but it did not help decrease the unemployment rate among Saudis, which stood at 12.9 percent.
Former Minister of Labor Ghazi Al-Gosaibi had emphasized the need to change school textbooks and develop vocational and technical training centers to qualify Saudis for the job market.
The late minister had also called upon educational institutions to create a student-friendly atmosphere in order to develop their professional skills and capabilities.