As many as 1.2 million foreign workers will leave the Saudi labor market in 2020, with an estimated 300,000 already gone this year, according to a recent labor market update by Jadwa Investment.
“Overall we expect a total of around 1.2 million expat workers leaving the local labor market during the year, with our estimates based on heath insurance data pointing to around 300 thousand such departures year-to-date,” according to the Riyadh-based investment company.
Despite the departure of a large number of foreigners, the unemployment rate among Saudis will likely remain unchanged at 12 percent by the end of 2020. Graphic via Jadwa Investment.
According to the report, 445,000 foreign workers left the Saudi labour market in 2019.
The most affected sectors that are likely to witness the exit of the highest percentage of foreigners are hospitality, food services, administrative and support activities, which include rent and lease activities, travel agencies, security and building services, the report says.
The exodus of expats is a result of an economic slowdown from the Coronavirus pandemic. This week, the number coronavirus deaths in Saudi Arabia reached 1,000, and Monday saw a new record of 4,507 daily cases.
[Click here to read the full report from Jadwa Investment] [Arabic]
