Contents
Reflections on current macroeconomic situation and labor market conditions in GCC countries. 4
Works councils and trade unions. 5
Challenges faced by the businesses and HR departments in GCC.. 6
Effects of these challenges. 7
strategies to overcome the challenges. 9
Appendix one: The strategy scan: the six- component model 11
Abstract
The main aim of writing this report is to analyze critically challenges facing Labor market on modern macroeconomic situation and labor market conditions in GCC. In 2015 countries, selling oil in oversees especially in the MENA expanse lost billions of money on revenue. Due to this, there was slow market stability and the labor force remained low. Information obtained was from secondary sources, websites journals, and books. The article therefore summarizes challenges facing GCC countries, their effects, and ways of eradicating these problems.
Introduction
The Labor market: HR faces a number of challenges that influences their performances negatively. Reflections of macroeconomic situation with the GCC countries that have lost billions of money while transporting their products.
Reflections on current macroeconomic situation and labor market conditions in GCC countries
Workforce
Employment in GCC countries play two major roles: ensuring economic success and securing societal stability. Economic prosperity cannot be achieved without social stability and the vice versa.GCC achieves societal stability by realizing the recognized contact between the state and its citizens. The community expects the government to be in a position to provide free access to health facilities, provision of job opportunities among others. In exchange, the society will support the government described high level of dependence between authorities and the citizens.
The described dynamics include public labor market that includes of state owned activities and public administrators. Economic success in the GCC countries depends on the national human resources. This eventually results in an economic agreement that reflects the affiliation between employees who are not national workers, which are both trained and untrained workers and their host countries. In the agreement, employees who are not national workers with profitable benefits while their integration in the community remains limited and their rights.
Competition
GCC countries have made vital strides in improving education however; illiteracy remains high while the enrollment in tertiary and secondary education is below employment levels in countries with the same per capita income. As a result, GCC countries are unable to achieve a maximum success.
Works councils and trade unions
This external population institution context influences the social workers partners. According to Jevtić(2012) the main role of the work councils is to present the employees before the company so that their interests and rights protected. The work council also must not give more advantage to specific employees or even placing those in a position that has worsen compared to other workers in the company. While on the other hand trade union representatives’ occupies all obligations and rights of the work council if, there is no established work council.
Technology
According Abdulla, Wajeeh and Twizell (2008 universities should improve the aptitude to globalize technologies particularly ICT`s. This globalization divided into three categories: the global creation of modernization, internationally produced technology, and global technology associations. Irrespective of division, the universities should come up with technologies that will induce the number of SMEs.
In conclusion, all the reflections are an indication of the challenges that GCC countries experience in the labor market. However all these challenges can be effectively solved for example GCC countries need to improve the education system every worker be employed based on their academic levels.
Challenges faced by the businesses and HR departments in GCC
Poor political governance
Governance in the GCC countries is weak, with the partial exceptions of Brahin and Kuwait. GCC countries score a negative value score for responsibility and voice. In addition to that, Freedom house that measures civil independence and political rights are not free.
Labor market dilemma
GCC labor market faces problems of unemployment especially among the youth a problem that attributed by the high population growth rate. There is also restricted role of non-oil private sector in generating employment legalized by the GCC generals. In addition to that, there is alien labor in which GCC countries have the majority employees. GCC countries do not give women more opportunities for their participation in the GCC countries. Saaif (2009)
Unemployment
GCC countries are different and face different challenges both bin intensity and nature. UAE for instance unemployment has resulted into negative effects in the economy and the society. Unemployment in UAE is especially among the youth where of the total unemployed persons 50 per cent are those between low level of skills and intermediate level of education. Due to this, the government has set innovative labor policy that will place nationals in public and private jobs. In other countries like Saudi Arabia, female employment is underestimated
Low productivity
Labor market should play two major important roles, the first being in a position to support labor market and provide total employment for the general population, in this way productivity will be maximized hence economic growth. Labor demand is also lethargic in all GCC countries and labor production stagnant.
Effects of these challenges
Unemployment
GCC countries have led underutilization of human per capital, for example, most women in Saudi Arabia have degree in universities, yet they do not have opportunity in the GCC countries. The effect of this gender mismatch is low production goods end up reducing tax payment. In addition to that, unemployment raises many sentiments from foreign workers in the national.
Labor market predicament
Labor market problems lead to unemployment, as most youths in the GCC countries are unemployed. The GCC countries challenges of demographic where one third of the population are below the age of 16.Labor problems eventually encourage private sector to employ the cheapest labor rather than investing in person capital of national workforce in the GCC.
Low production
Decline in production has forced the GCC countries to come up with other means of getting revenue. The low price oil has led to slow economic growth rate. The current low oil prices have made the government to consider cutting waste and inefficiencies.
Political governance
In most GCC countries they are unable to fight the problem of corruption those in leadership and those employed their level of education is questionable. The government leaders in position end making decisions that have no benefit to the organization. In most cases due lack of transparency employees are not able to fight for their rights and those who have reached retirement age still remain in the offices when the youth are seeking employment.
Strategies to overcome the challenges
Poor governance
Issues of good governance has been a persist problem that hinders economic development of the GCC countries. The issue of accountability given first priority, on the other hand policy makers are making sure those high standards of cooperative management are on the lead.
Unemployment
GCC government has come up with both long-term strategies and short-term strategies. The government is therefore creating job opportunities in general, also reducing reliance on refugee workers, and reinvesting capital that would flow in the foreign countries in as remittances.
Low production
The nationals need to seek private sector employment and develop business organizations that will have an increased tradable. The government also is required to absorb the new market entrants while the private sector is required to meet investment and consumption needs.
Labor market predicament
GCC countries have come up with strategies that will enhance equality in the provision of jobs. In Saudi Arabia, they are encouraging women to join in the GCC nationals while those with qualifications in the job vacancies employed.
Conclusion
GCC faces challenges that affect their level of production however with strategy laid it is likely for it to have accomplished most of their goals by the end of the year 2016.Although the GCC has the weakest labor market that are difficult to evaluate the quality of UAE capital is not high. Unemployment being a major problem in all GCC countries, low production of oil and problems of labor market has negatively affected the GCC countries. Strategies laid by these nations will curb most of their challenges.
Appendix one: The strategy scan: the six- component mode
References
Jevtić, M. (2012). The role of works councils and trade unions in representing interests of the employees in EU member states. Retrieved on September 21, 2016 from http://library.fes.de/pdf-files/bueros/belgrad/08947.pdf
Saif, I. (2009). The Oil Boom in the GCC Countries, 2002-2008: Old Challenges, Changing Dynamics. Carnegie Endowment for International Peace. Retrieved on September 21, 2016 from
http://carnegieendowment.org/files/cmec15_saif_final.pdf