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Saudi Unemployment Declines, Approaching Government Targets

One of the job fairs in Saudi Arabia that brings job seekers together with companies (Asharq Al-Awsat)
One of the job fairs in Saudi Arabia that brings job seekers together with companies (Asharq Al-Awsat)
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Saudi Unemployment Declines, Approaching Government Targets

One of the job fairs in Saudi Arabia that brings job seekers together with companies (Asharq Al-Awsat)
One of the job fairs in Saudi Arabia that brings job seekers together with companies (Asharq Al-Awsat)

The unemployment rate among Saudis, during Q2 of 2023, decreased to 8.3%, marking a notable decline from the 9.7% recorded in the corresponding period in 2022.

This development aligns more closely with the ambitious target set by the Saudi government in its “Vision 2030” initiative, which seeks to achieve a 7% unemployment rate in the Kingdom.

Progress in reducing the rate of joblessness in the Kingdom can be traced back to the government’s steadfast commitment to addressing unemployment issues among both Saudi men and women by actively fostering increased job prospects within the local job market.

In Q1 of 2023, the unemployment rate among Saudis stood at 8.5%, but it dropped to 8.3% in Q2 thanks to government programs, initiatives, and decisions aimed at localizing a number of jobs within its labor market reform measures.

The Saudi Human Resources and Social Development Ministry is intensifying its efforts to localize several sectors within the Saudi market.

It is doing so through various initiatives aimed at supporting private sector establishments, which are expected to have a positive impact on unemployment rates for the overall population.

The ministry’s workforce-supporting strategy has played a role in reducing the overall unemployment rates.

Aligning with the Kingdom’s objectives of empowering women and enhancing their economic participation, the ministry'’ efforts have yielded an unprecedented reduction in the unemployment rate among Saudi women in Q2, 2023, reaching 15.7% compared to 19.3% in the same period in 2022.

A recent report by S&P Global showed that labor market reforms in Saudi Arabia have nearly doubled the women’s labor force participation rate in the country from approximately 19% in 2016 to nearly 36% in 2022.

As a result of measures aimed at improving access to the labor market requirements and the effectiveness of policies involving young Saudi talents in various fields, an official report showed that the participation rate in the labor force for the total Saudi population (males and females aged 15 and above) in Q2, 2023, is approximately 51.7%.

This figure remains largely stable compared to 52.4% in the previous quarter.

It is worth noting that Saudi Arabia’s Human Resources Development Fund has contributed to supporting 1.4 million Saudis through training, empowerment, and guidance programs during the first half of 2023.

Approximately 79,000 establishments across various regions of the kingdom have benefited from the fund’s support, with about 95% of these establishments falling under the category of medium, small, and micro-sized enterprises.

Saudi Shura Council member Fadel al-Buainain told Asharq Al-Awsat that fluctuations in the unemployment rate on a quarterly basis are expected due to economic and commercial variables, as well as changes in the labor market.

Buainain believes that such relative fluctuations during a quarter help direct efforts and address any issues if they arise or enhance gains.

He explained that during the current year, the unemployment rate rose to 8.5% in Q1, then decreased to 8.3% in Q2, indicating that there have been corrective measures and improvements within a span of three months.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."