BAHRAIN: Unemployment high in Bahrain among locals who shy away from blue collar jobs

Record ID: 172422

  • Title: BAHRAIN: Unemployment high in Bahrain among locals who shy away from blue collar jobs
  • Date: 31st January 2008
  • Summary: ALI MOHAMMED, OWNER OF THE 'YOKO' COMPANIES FOR BATHROOMS, ELECTRONICS, MEDICAL SUPPLIES AND TRAVEL, AT HIS OFFICE VARIOUS ALI MOHAMMED SPEAKING WITH HIS BAHRAINI STAFF VARIOUS STAFF WORKING AT DESK
  • Embargoed: 15th February 2008 12:00
  • Keywords:
  • Location: Bahrain
  • Country: Bahrain
  • Topics: Social Services / Welfare
  • Reuters ID: LVAMFDPNWD15J030YO2HLTPPF3Q
  • Story Text: Unemployment among Bahrain's young population is high, and the government has launched a programme to encourage more locals to join the workforce and take on blue-collar jobs now filled by migrant labourers.
    Record oil prices are creating vast wealth in the Arab Gulf, but unemployment among local youth in some Gulf countries is becoming a worry for governments and residents.
    Officials say many locals in Gulf Co-operation Council (GCC) states are unemployed because the education systems have failed them. Others blame the increase of unemployment among the Gulf's youth on an increase in hiring foreign labourers who accept lower wages and longer working hours.
    Bahrain, a tiny island state which measures about 237 square miles, is the Gulf's poorest state and its oil reserves are almost exhausted. Bahrain relies heavily on banking and tourism, but, like other Gulf countries, is also witnessing a construction and business boom.
    There is growing concern, however, over unemployment among the country's nationals, which, according to some estimates, has reached about 15 percent.
    Official estimates put the figure at nine percent.
    While government programmes are being set up to encourage more nationals to join both the private and public sector, many say the problems are not merely that of lack of education and qualifications but more of attitude or social practices.
    Ali Mohammed's company owns a number of shops selling bathroom fixtures, electronics, medical supplies and travel packages. He encourages the employment of local staff at his shops, but says it is necessary to hire foreign workers as well.

    "Bahrain is in great need of foreign labour, because Bahrainis refuse, absolutely refuse, to work in low-ranking (blue collar) jobs, such as farming, construction, other services, in the municipality and cleaning. So, we are in need of foreign labour, and even if the fees (of bringing in foreign labourers) are high, who else will perform these low-ranking jobs?'' Mohammed said.
    Impoverished men and women from South Asian countries have been coming to work in the Gulf for decades. May of them find work on construction sites or oil installations or in homes as domestic help.
    Mohammed explained that the recruitment of Bahrainis is difficult in certain sectors due to social perceptions of certain types of jobs.
    ''Bahrainis like office jobs, clean jobs, they will not move to a lower level for two reasons. The first reason is of course the social situation (status), the way people would look at (a Bahraini) who works in construction or cleaning,'' he said.
    This, according to Mohammed, means that he must pay more money for foreign labourers - not in terms of salaries but in terms of providing accommodation, paying their residency fees, medical care and taking responsibility for other costs which would not apply if he employed more nationals at his firms.
    ''Even if you were to give a Bahraini 200 (Bahraini) dinars (532 U.S.
    dollars - USD) to work as a construction worker, he would refuse to do so.
    Even though we pay a foreign labourer 70 (Bahraini) dinars (186 USD) or 80 dinars (212 USD), in actual fact he costs us more than 200 dinars because when you add accommodation and other costs to the wage, itup costing you more than 200 dinars in total (per foreign labourer)," said Mohammed.
    Foreigner labourers, mostly workers from the Indian subcontinent and the Philippines, make up about one-third of Bahrain's population of about 650,000.
    With a fast growing economy and the need for labourers to work long hours in rigourous conditions, employers are looking for people who will not complain, as one businessman explains.
    Abdul Rahman Mohammed al-Sindi, who heads the Pan World Computer IT Corporation, says he would like to employ more nationals in coming years, but is currently reluctant to do so.
    ''The main problem is when you have a big project and you need a certain type of worker and you need to finish the project within a limited or tight timeframe, you cannot rely on Bahrainis because you do not have authority over them.'' Bahraini law prohibits the sacking of Bahraini nationals from their jobs.
    Government efforts are underway to reduce unemployment among young nationals in Bahrain through making them more qualified for a range of jobs.
    Currently, there are hundreds of locals being trained for jobs in the private sector. And as with other Gulf States, the nationalisation of jobs is becoming a priority in Bahrain.
    ''There is no problem with regard to Bahraini labourers (in terms of quantity). Bahrain's workforce needs to be improved upon in terms of training and qualification and this is what the (current programme) is aimed at. God willing, we are at the stage of developing these programmes in order to ensure that Bahrainis are more qualified,'' said deputy labour minister Sheikh Abdul Rahman Bin Abdullah Al Khalifa.
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