Dubai: The unemployment rate in the Arab world is expected to rise by 14 per cent this year, according to a report by the Arab Labour Organisation (ALO).
The region has the fastest population growth rate in the world with the Arab population reaching 338.4 million in 2008 compared with 319.2 million in 2006.
The first Arab report on employment and unemployment, released by the ALO, considered the unemployment problem as a major challenge facing the Arab world, where the jobless rate is among the highest in the world.
Speakers at the ALO conference warned that the growing unemployment in the Arab world was a ticking time bomb. They called for the adoption of proper strategies and revision of education policies to tackle the problem.
Poor education policies, the limited size of the private sector and the limited capacity of the public sector to employ Arab workforce, were highlighted by the speakers.
"The rise in the number of unemployed youth in Arab countries is a very serious problem," said Amr Mousa, Secretary-General of the Arab League, in a speech at the ALO conference held in Cairo last Thursday.
Mousa underlined the importance of revising education policies, developing education and improving its quality in the Arab world.
He noted that unemployment rates among young people reach 66 per cent in some Arab countries.
The most important questions posed with regard to unemployment revolve around the reasons that led to the spread of unemployment and its spiralling to alarming levels.
The quality and nature of education in the Arab world is one of the most important reasons behind this issue and this is why education policies need to be revised, Mousa said.
Mousa pointed to the importance of creating new job opportunities related to the openness on the outside world and investment.
Mohammad Ebrahim Al Tuwaijri, Assistant Secretary-General of Arab League for Economic Affairs, attributed the unemployment to a lack of job opportunities offered to the youth.
"The limited capacity of Arab markets to employ an Arab workforce, and the public sector's limited size and its inability to create sufficient job opportunities that meet the growing demand of the young have exaggerated the problem," Al Tuwaijri said.
He called on Arab countries to adopt long-term strategies to create sufficient job opportunities for the youth.
The report noted that Arab countries should increase economic growth from three per cent to seven per cent and pump $70 billion into their economies to create about five million jobs a year.
The report showed that unemployment rates hit 25 per cent among people who are able to work, while the number of foreign workers hit nine million, most of them are in the GCC countries.
According to statistics, remittances by expatriate workers were estimated at 25 per cent of the GCC's annual oil incomes in 2006.
By Khitam Al Amir, Staff Reporter