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COVID-19 vaccine
The ongoing vaccination campaign against COVID-19 in Saudi Arabia is expected to boost business sentiment significantly in the second half of 2021, which, along with localization efforts, will help create more job opportunities for citizens, Jadwa Investment said in a recent report.
The recovery in the labor market proceeded quicker than anticipated, which reinforces that unemployment rate will decline to 12.1% by the end of 2021.
"We cannot rule out fluctuations in the rate of unemployment during H1 2021, especially when the suspension of recreational events and services in Q1 2021 is considered. The risk of a return to some form of restrictions in the immediate future are ever present with a sharp rise in the number of COVID-19 cases being observed recently," Jadwa said.
Meanwhile, major structural changes are being implemented as a result of the new labor reforms in the "Kafala" system.
The firm further added that expatriate workers in sectors such as restaurants and cafes, accommodation, and education are likely to see the highest competition and salary benefits.
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