Nationalization of Middle East Labor Force: Early Signals of Future Changes in the Labor Market
As countries that used to rely on expatriates for their technical manpower needs begin to nationalize their labor force, some of them are strengthening their partnerships with the Philippines along training of their trainers. Recently, the Technical Education and Skills Development Authority (TESDA) reported that the Kingdom of Saudi Arabia has trained 338 of its TVET trainers through its partnership with the government. This year, according to the report, 10 more Saudi nationals will be trained (via the MFI Foundation, Inc., formerly the Meralco Foundation) to conduct training in qualifications such as automotive servicing, electronic ignition system, electronic fuel injection, troubleshooting automotive engine systems and automatic transmission systems. Previously, trainers in qualifications such as food processing, multi-media, computer networks, video production, photography, refrigeration and air-conditioning repair were trained under the program. ("Saudi Tech-Voc Experts Undergo Training in TESDA," TESDA website; September 24, 2011)
The move of the Saudi government to even more strengthen the training of its own trainers is rooted on its intention to reduce unemployment rate (30 percent, according to some reports; official estimates report around 9.6 percent), diversify its economy (around 75 percent of its national income comes from oil) and improve its educational system. When attained, it is hoped that these will help reduce or prevent radicalism among its youth (around half of the kingdom's population is below 18 years old), make the economy more resilient and create a stronger foundation for the future through training and education.
Never Meant to Be Permanent
The use of expatriates (such as overseas Filipino workers) to provide manpower for its oil and gas industry was never meant to be permanent. ("An Integrated Approach to Combat Unemployment in the Saudi Labor Market," Asian Association for Social Welfare; accessed Oct. 10, 2011) Saudi Arabia (and other similar Middle Eastern economies) were forced to get their technical and professional workers from abroad when oil boomed during the 1970s while their own nationals were yet educationally and technically ill-equipped. Today, literacy rates in oil-rich countries in the Middle East have improved (Saudi Arabia, for example, has now 86 percent total adult literacy rate, according to the United Nations International Children Education Fund) but the number of foreign nationals working there remains significant (in Saudi Arabia, 5.6 million or around 20 percent of the total population), indicating that the need for foreign expertise remains large.
But the Saudi government and others in the region are determined to reverse that. One of the strategies is to establish universities, colleges and technical training centers where the faculty members and trainers are locals.
Previously, it was thought that university professors and technical-vocational trainers schooled in Western countries will be highly beneficial for the Saudi economy. Right now, however, it has been realized that it will be best to train native Saudi trainers in countries of similar economic development. Thus, one sees programs of the Saudi government involving the training of its technical trainers in countries such as the Philippines. However, the reason for training Saudi trainers in the Philippines is not limited to the similarity of economic status; Saudi companies have long utilized Filipino technical workers, are acclimatized to the their working habits and are comfortable with their levels of expertise.
Early Signals
The building of collective technical expertise of native Saudis is an early signal for Filipino blue-collar workers that sooner or later, Saudi Arabia and other countries in the Middle East may no longer be the biggest destination for skilled OFWs. It is also an early signal that there is a need to see further down the road, and train for qualifications that will be more and more needed while reducing those that will be taken over by the locals. It will still take years for the nationalization program of the workforce of oil-rich countries of the Middle East to take effect but it is something that the Philippines' TVET sector needs to take a close look.
The move of the Saudi government to even more strengthen the training of its own trainers is rooted on its intention to reduce unemployment rate (30 percent, according to some reports; official estimates report around 9.6 percent), diversify its economy (around 75 percent of its national income comes from oil) and improve its educational system. When attained, it is hoped that these will help reduce or prevent radicalism among its youth (around half of the kingdom's population is below 18 years old), make the economy more resilient and create a stronger foundation for the future through training and education.
Never Meant to Be Permanent
The use of expatriates (such as overseas Filipino workers) to provide manpower for its oil and gas industry was never meant to be permanent. ("An Integrated Approach to Combat Unemployment in the Saudi Labor Market," Asian Association for Social Welfare; accessed Oct. 10, 2011) Saudi Arabia (and other similar Middle Eastern economies) were forced to get their technical and professional workers from abroad when oil boomed during the 1970s while their own nationals were yet educationally and technically ill-equipped. Today, literacy rates in oil-rich countries in the Middle East have improved (Saudi Arabia, for example, has now 86 percent total adult literacy rate, according to the United Nations International Children Education Fund) but the number of foreign nationals working there remains significant (in Saudi Arabia, 5.6 million or around 20 percent of the total population), indicating that the need for foreign expertise remains large.
But the Saudi government and others in the region are determined to reverse that. One of the strategies is to establish universities, colleges and technical training centers where the faculty members and trainers are locals.
Previously, it was thought that university professors and technical-vocational trainers schooled in Western countries will be highly beneficial for the Saudi economy. Right now, however, it has been realized that it will be best to train native Saudi trainers in countries of similar economic development. Thus, one sees programs of the Saudi government involving the training of its technical trainers in countries such as the Philippines. However, the reason for training Saudi trainers in the Philippines is not limited to the similarity of economic status; Saudi companies have long utilized Filipino technical workers, are acclimatized to the their working habits and are comfortable with their levels of expertise.
Early Signals
The building of collective technical expertise of native Saudis is an early signal for Filipino blue-collar workers that sooner or later, Saudi Arabia and other countries in the Middle East may no longer be the biggest destination for skilled OFWs. It is also an early signal that there is a need to see further down the road, and train for qualifications that will be more and more needed while reducing those that will be taken over by the locals. It will still take years for the nationalization program of the workforce of oil-rich countries of the Middle East to take effect but it is something that the Philippines' TVET sector needs to take a close look.
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