Kuwait Employment and Career News
GCC Nationals likely to shun private sector jobs
With the current global economic turmoil hitting the Gulf nations too, the Gulf nationals may think twice before seeking a job in private sector, reports the National Bank of Kuwait (NBK).
With the mounting job losses in the region, which forms a part of cost-cutting measures by the private sectors, it is likely that GCC nationals will lose all their confidence in the private sectors, and will stop considering it as a secure and well-paid source of employment.
On the other hand, the existing preference among nationals for public sector employment may gain momentum, putting the recent gains at risk, the report points out.
According to NBK, the Gulf nationals have already shown a preference for working in the public sector, due to the biased incentive structure and the strong competition that they have to face from the expatriates in the private sector.
Also, while the private sector is witnessing redundancies and salary cuts, the public sector continues to remain stable.
In 2007, the Nationals working in the public sector have been estimated to account for 58 percent of total GCC nationals.
The Bank has reported that there may not be any major salary cuts in the public sector this year, or even in 2010, as any GCC country is unlikely to downsize employment in the public sector.
Although, the quota system to promote national employment in private sector has been successful, it is essential that Gulf nations implement some stringent reforms in their labour market, including investment in human capital and some reforms in educational curriculum.
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