The lockdowns accompanied by the spread of Coronavirus, particularly after the closure of many private firms, had an adverse impact at all levels in 2020.
Moreover, the GCC countries faced problems with the decline in global demand for oil and the collapse of oil prices that pushed up the rate of unemployment.
According to the United Nations Economic and Social Commission for Western Asia (ESCWA) report entitled “Survey of Economic and Social Developments in the Arab Region,” the unemployment rate in the GCC countries will be around 5.8 percent in 2021, while the region’s growth rate will be between 2.3 percent and 2.1 percent
In terms of economic growth, the Standard & Poor’s Global Agency predicted in February 2021 that the GCC’s economies would increase by about 2.5% between 2021 and 2023.
GCC unemployment rates in 2020
Saudi Arabia
According to the World Bank, Saudi Arabia has been implementing major economic reforms since 2016, diversifying its economy and creating millions of jobs as part of its Vision 2030. As a result, it aims to reduce the unemployment rate to 7 percent by 2030, as against 8.2 percent of the total workforce in 2020.
In Q2 2020, unemployment hit a record high of 15.4 percent. However, it fell to 11.7 percent in Q1 of 2021, dropping from 12.6 percent in the previous quarter, according to the General Authority for Statistics data.
Kuwait
Kuwait is ranked second on the list of the countries with the highest unemployment rate in the GCC region in 2020, with 6.8% of the total workforce unemployed, according to the World Bank report.
On the other hand, the government has taken several steps to assist citizens, including passing a law to open a US$1.99 billion additional appropriation in the 2020-2021 budget to provide bonuses for frontline workers fighting the COVID-19 virus.
Kuwaiti Finance Minister Khalifa Hamadeh expects his country to get a cumulative deficit of US$183.3 billion in five years from 2020-21 to 2024-25 due to the pandemic.
UAE
In 2020, the UAE’s unemployment rate reached 5% of the total workforce, in a year that had seen the world’s most significant economies fatigued due to the spread of the COVID-19 virus.
The UAE is continuing its vaccination campaigns in the hope of returning to pre-pandemic norms as early as possible.
In this context, the UAE has vaccinated more than 78 percent of the eligible group, particularly ones over 16 years, and 84.59 percent of the elderly group, aged 60 and above till May 2021. The government also said that starting June 6, getting vaccinated will be a must for participating in all activities.
Oman
According to the World Bank, Oman’s unemployment rate was about 5% of the total workforce in 2020, resulting in riots and protests in several Omani cities in May 2021, amid an economic crisis aggravated by the negative consequences of COVID-19.
Oman’s public debt has risen because of the global oil price drop, according to Standard & Poor’s Global Agency, which estimates that the external debt due in the current and next two years is US$10.7 billion, or about 7.5 percent of GDP.
In April 2020, Oman called for accelerating replacing foreign employees in government sectors with Omani nationals to provide further job opportunities to its citizens.
Bahrain
Bahrain was ranked 5th on the list of the “Arab Gulf region’s highest unemployment rates for the year 2020,” with 4.1 percent workforce jobless. In addition, Bahrain’s public debt shot up to 133 percent of GDP up from 102 percent in 2019.
According to a statement by the International Monetary Fund in March 2021, the total budget deficit in Bahrain increased to 18.2 percent of GDP last year, rising from 9 percent in 2019 due to falling oil prices affecting revenues.
Qatar
Qatar has the lowest unemployment among the GCC countries, accounting for 3.5 percent workforce in 2020, as per the World Bank report.
The government is planning to welcome millions of visitors next year to take part in the 2022 FIFA World Cup. Thousands of people are expected to find jobs and the unemployment rate is likely to drop further.
Qatar’s economy shrank by 3.9 percent in Q4 of 2020, accompanied by a 32.8 percent drop in transportation and warehousing activity and a 5 percent fall in construction activity. Still, the country’s economy is expected to rise in the coming years.