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Unemployment and Economic Growth in Saudi Arabia 2000-2015

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  • Alotaibi Mohamed Meteb

Abstract

The objective of this paper concentrates on determining the relationship between unemployment and economic growth in Saudi Arabia for the period 2000-2015 in order to explanation of the employment, unemployment level and its determinants to increase the employment level and avoiding the harmful effects of unemployment problems. The question to be raised is does recruitment rely on the public sector? Does the creation of job opportunities in the state¡¯s public sector have a negative or positive effect on the private sector through the effect of withdrawing its specialized technical cadres? Is the private sector growth real or illusive? Is the economic growth adequate to reduce the unemployment rate among Saudis? The results obtained show that, there are a positive relationships between the employment and real income, real investment, real government expenditure and real value of exports. On the other hand, there are negative relationships between employment and the real value of imports. The economic growth was not adequate in reducing the unemployment rate among Saudis. There is a reversal relationship between unemployment rates and the economic growth which does not effectively work in the Saudi economy. Saudis prefer to work with government sector not in private sector; Government must stimulate Saudis to work in private sector. This paper used the annual data from 2000 to 2015 for Saudi Arabia. All data in this paper was obtained from Saudi Arabian Monetary Agency (SAMA) and World Bank Development Indicator.

Suggested Citation

  • Alotaibi Mohamed Meteb, 2017. "Unemployment and Economic Growth in Saudi Arabia 2000-2015," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(9), pages 83-93, September.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:9:p:83-93
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    References listed on IDEAS

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    3. Mark J. Roberts & Emmanuel Skoufias, 1997. "The Long-Run Demand for Skilled and Unskilled Labor in Colombian Manufacturing Plants," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 330-334, May.
    4. Oster, Gerry, 1980. "Labour Relations and Demand Relations: A Case Study of the 'Unemployment Effect.'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 4(4), pages 337-348, December.
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    Cited by:

    1. Khaled Nasser Ali Al-Mwzaiji & Ahmad Abdullah Salih Muhammad, 2023. "EFL Learning and Vision 2030 in Saudi Arabia: A Critical Perspective," World Journal of English Language, Sciedu Press, vol. 13(2), pages 435-435, March.
    2. Abla A. H. Bokhari, 2020. "The Twinning of Inflation and Unemployment Phenomena in Saudi Arabia: Phillips Curve Perspective," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(2), June.
    3. Kolthoom Alkofahi, 2020. "The Effect of Foreign Direct Investment on the Unemployment Rate in Saudi Arabia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(10), pages 1-1, October.

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    More about this item

    Keywords

    employment; unemployment; saudization; economic growth; income;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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