By Chinenye Anuforo, Saudi Arabia
A stark warning about a projected 300 million job shortfall echoed through the halls of the Global Labor Market Conference (GLMC) in Riyadh, as Safaa EL Tayeb EL-Kogali, the World Bank Group’s Country Director for the Gulf Cooperation Council (GCC), highlighted the urgent need for international collaboration to address the looming employment crisis.
El-Kogali painted a sobering picture of the current situation, noting that approximately 400 million people are currently willing to work but remain unemployed, a figure marked by significant disparities across regions and demographics. Looking ahead, the challenge intensifies dramatically. “Over the next decade, 1.2 billion young people in emerging economies will enter the workforce, but job creation will fall short with an estimated deficit of 300 million jobs,” she warned, emphasizing the scale of the problem facing global leaders and policymakers.
This massive shortfall in job opportunities underscores the critical importance of the GLMC, El-Kogali emphasized. “This is why this gathering is more important than ever,” she declared. The conference serves as a crucial platform for global leaders, experts, and policymakers to unite and strategize on tackling this complex issue. She stressed that the projected deficit represents not just a number, but a potential crisis with far-reaching social and economic consequences.
El-Kogali stressed the necessity of shared experiences and collaborative efforts. “We all need to work together and share our experiences to help tackle these challenges and create a better future for all people around the world, especially in the global labs,” she urged.
The “global labs” likely refer to collaborative workspaces or initiatives designed to foster innovation and problem-solving in the realm of labor and employment, suggesting a focus on practical solutions and knowledge sharing. She emphasized that no single nation or organization can address this challenge alone, requiring a concerted global effort.
The World Bank official invoked the wisdom of Ibn Rushd to underscore the fundamental importance of work. “True work is what makes a person free. Idleness is humiliation while work is dignity,” she quoted, emphasizing the transformative power of employment not just for individuals but for societies as a whole. Her words served as a powerful call to action, reminding attendees of the human cost of unemployment and the urgent need for solutions. The quote highlighted the connection between meaningful work, individual dignity, and societal well-being, framing the employment crisis as more than just an economic issue.
Also in his keynote speech, His Excellency, Engineer Ahmad Bin Salman Alrajhi, the Minister of Human Resources and Social Development, delivered a speech on behalf of the Custodian of the Two Holy Mosques, emphasizing the importance of global collaboration in addressing pressing labor market challenges.
“This global gathering is vital due to the major transformations shaping and being shaped by the labor market worldwide,” Minister Alrajhi stated.
He highlighted the rapid technological advancements, fundamental demographic changes, and emerging issues like climate adaptation as critical factors requiring proactive and bold action. “These developments require us to take proactive and bold steps to prepare us for the future.”
The Minister underscored the GLMC’s role as a crucial hub for collaboration and a global think tank supporting labor market research. He noted the conference’s previous successes in addressing topics like the impact of digital technologies on jobs and wages, and this year’s focus on contemporary challenges. “Our vision remains clear and our role is steadfast to work together to build flexible and inclusive labor markets that can adapt to future challenges and changes efficiently and effectively,” he affirmed.
Alrajhi painted a stark picture of the global challenges, citing figures of 67 million unemployed young people and a nearly 20% rate of youth neither employed nor engaged in education or training. He also pointed to the struggles employers face in filling vacancies due to skills mismatches. “Recent data from the Organization for Economic Cooperation and Development (OECD) indicated that the average youth unemployment rate reached as high as 11.3% in the third part of 2024, rising to more than 20% in some member countries,” he warned. “These figures highlight the urgent need to develop comprehensive strategies to address these common challenges effectively.” He stressed that these challenges affect both emerging and advanced economies, emphasizing Saudi Arabia’s commitment to addressing them both domestically and through international partnerships.
The Minister showcased successful models from other countries, such as Germany’s dual vocational training program, Singapore’s Skills Future program, and Kenya’s Ijara Digital program, as examples of effective solutions. “These models, among others, demonstrate that there are numerous solutions that can be developed and worked on to create an optimistic future for labor markets,” he explained.
Alrajhi detailed Saudi Arabia’s own initiatives, including a focus on youth innovation and productivity, with the goal of reducing the percentage of young people not in employment, education, or training to 8% by 2030. He also mentioned a cooperative training policy designed to enhance students’ skills and job prospects. “Since the beginning of 2024, more than 83,000 Saudi students have been trained in private sector establishments,” he announced.
He then unveiled two new initiatives. The first, in partnership with the World Bank, is the launch of the Labor Academy in Riyadh, aimed at training policymakers worldwide. “The Academy will be permanently based in Riyadh, reflecting the Kingdom’s commitment to advancing technology and expertise,” he said. The second is the “Navigating the Future” report, a comprehensive analysis of global labor market trends. “The report provides practical recommendations based on in-depth research offering innovative strategies to bridge skill gaps to promote lifelong learning,” Alrajhi explained.
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