The UAE
has one of the lowest
unemployment levels in
the world, standing at
only 2.4 per cent at the
end of 2001 as a result
of high growth in the
non-oil economy and a
government drive to find
jobs for citizens, according
to official estimates.
The
country's workforce
was estimated at around
2.079 million last year,
of which nearly 2.029
million were employed,
the Ministry of Planning
said in its 2002 annual
report.
This
means around 50,000
people were jobless,
accounting for about
2.4 per cent of the
total labour force and
just 1.4 per cent of
the 3.48 million population.
The
ministry said it had
revised its figures
for the workforce which
it earlier estimated
at around 1.85 million
at the end of 2001.
Experts
said the revision was
apparently prompted
by drastic changes in
the labour market as
thousands of expatriates
had to leave because
of new labour policies
while a large number
of nationals are taking
up jobs after reaching
the legal job age.
"Compared
to other developing
or even developed countries,
the UAE's unemployment
rate is one of the lowest
in the world,"
said a UAE banker.
But
experts noted official
estimates do not include
thousands of illegal
expatriate residents
who are not registered
with the Ministry of
Labour and Social Affairs.
Although some of them
have part time jobs
in violation of labour
laws, many of them are
unemployed.
More
than 200,000 illegal
migrants, mostly Asians,
left the UAE five years
ago to benefit from
a general amnesty ordered
by President His Highness
Sheikh Zayed bin Sultan
Al Nahyan to clean up
the country from immigration
violations and restore
discipline in the job
market. Another spardon
is expected to be announced
in the next few weeks.
Although
actual unemployment
rates might be higher,
the UAE does not have
a real joblessness given
its strong economy and
a serious government
campaign to employ nationals
through the creation
of new jobs in the public
and private sectors
and replacement of expatriate
workers.
Economists
said they saw no hurdles
for such a campaign
as the non-oil economy
is growing by at least
four per cent, which
is faster than the population
growth.
"This
means the UAE can cope
with the population
growth and at the same
time maintain its high
per capita income which
has eroded sharply in
other countries in the
region," an expert
said.
A
breakdown by the Ministry
of Planning showed the
UAE has never suffered
from a severe unemployment
problem, with the rate
standing at only 1.9
per cent in 1975.
It
fluctuated in the following
years but remained in
the range of one to
three per cent.
The
level is expected to
be maintained in the
following years as the
government's new labour
policies focus on employment
of nationals and deportation
of unnecessary and unqualified
foreign workers.
The
private sector will
likely play a major
role in the employment
of citizens given its
massive potential and
the fact that the public
sector is saturated
and is not growing enough
to accommodate large
numbers of new jobs.
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