On the National Employment Policy, its Dimensions and Evolution - by Jamil Humaidan (Minister of Labor and Social Development)

10-11-2019

With the launch of the reform project of His Majesty King Hamad bin Isa Al Khalifa, the country's great King, may God protect and preserve him, to provide stability and social welfare for citizens; the directives of His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister, may God protect him; and Cabinet decisions placing citizens at the centre of development—together with the diligent follow up of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, may God protect him, of the labour market reform plan and the Kingdom of Bahrain’s Economic Vision 2030—the Kingdom has adopted an integrated programme to manage and regulate the labour market and to build a work environment capable of generating quality job opportunities. This is pursued through a coherent system of policies, plans and initiatives that deliver stable, sustainable results in the short and long term. These components are interdependent and must be assessed collectively to understand their impact in making Bahrainis the preferred choice for employment. Understanding these policies may require clarification, as labour market management is an integrated system of intertwined plans and projects whose effectiveness is measured through shared outcomes and indicators. Media coverage sometimes isolates a single theme from this comprehensive view, potentially raising public questions. It is therefore important to highlight the Government’s interconnected vision for labour market management—its tools for generating decent, renewable opportunities for citizens and for maintaining unemployment within natural and safe limits—as follows: Firstly: An investment environment that generates job opportunities The Economic Vision 2030, Government strategic plans and the Government Programme all prioritise enabling the private sector to lead the national economy and be the main generator of employment. This is achieved by creating a pro investment work environment and maintaining appropriate flexibility to attract foreign investment that provides attractive jobs for citizens. Bahrain is actively promoted to international companies in a highly competitive regional context, necessitating flexible, investment friendly legislation, targeted incentives, and mechanisms that increase citizens’ access to suitable jobs created by these investors. Secondly: Establishing solid foundations to make citizens the preferred choice for employment Bahraini workers possess qualities that make them highly competitive, reflected in the steady increase of national employment in the private sector to more than 105,000 Bahrainis by the first half of 2019—representing 69% of all Bahrainis employed across the public and private sectors. Key pillars include: 1. Balanced Bahrainisation rates A calibrated Bahrainisation system sets sector specific rates according to each activity’s capacity to attract and retain Bahrainis. Application is automated electronically and subject to continuous evaluation through periodic reviews to keep rates aligned with market indicators. Compliance has gained strong employer support and is embedded in Government tender requirements. The system was further enhanced by a parallel work permit mechanism allowing establishments that have not yet reached the required Bahrainisation rate to obtain additional foreign worker permits upon payment of an added fee for each permit above the set rate. No exceptions to Bahrainisation are allowed; these fees are channelled to empower and train Bahrainis. 2. Cost advantages in favour of Bahrainis Government policy tilts hiring costs towards the national workforce through two parallel tracks. First, wage support programmes increase employer incentives—supporting up to 70% of the Bahraini worker’s wage for the first year and 50% for the first six months of the second year. Pursuant to directives of His Royal Highness the Crown Prince, wage support for unemployed university graduates registered with the Ministry of Labour and Social Development has been doubled under defined rules, significantly boosting opportunities for graduates who face greater employment challenges. More than 12,000 Bahrainis benefited in 2018. the relative cost of foreign hiring has been raised through work permit fees, together with increases of 150% for parallel work permit fees and 67% for flexible work permit fees. Proceeds fund employment and rehabilitation programmes for Bahrainis in private sector establishments. 3. Qualifying and training job seekers Training is the gateway to employment. The Government provides free foundational and professional training aligned with employer needs, with no fees for job seekers. Around 500 skills and professional programmes—accredited by the Labour Fund (Tamkeen)—were made available; 6,239 job seekers benefited in 2018 and approximately 3,000 in 2019. Delivery is through 83 licensed private training institutes under the oversight and quality systems of the Ministry and the Education and Training Quality Authority, with new, employment linked programmes introduced continuously. Third: Stability of national employment in jobs Retention and career development are as vital as placement. In parallel with recruitment, the Ministry—together with the Labour Fund (Tamkeen)—supports wage increases and promotions for Bahraini employees for two years. Over 7,000 Bahrainis benefited in 2018. The Ministry also promotes a healthy work environment, strong labour relations and services that enhance job stability. Job turnover among Bahrainis in the private sector has been reduced from 11% to 9%, and dismissals are maintained below 1% annually of the total national private sector workforce. Fourth: Ongoing initiatives to stimulate employment The National Employment Programme (2019) comprises four integrated initiatives designed to make Bahrainis the preferred choice in the private sector. As announced by His Royal Highness the Crown Prince at the Government Forum last October, 5,918 Bahrainis were placed through direct nomination by the Ministry from 25 February to September 2019, out of a total of 17,747 citizens employed in the private sector from January to September 2019. Key additional initiatives that stimulated the employment of Bahrainis are as follows: Identifying professions suitable for university graduates: Under the direction of His Royal Highness the Crown Prince during meetings of the Supreme Coordination Committee chaired by His Highness, the Ministry, in cooperation with the Labour Market Regulatory Authority, identified 529 suitable professions in demand by university‑graduate job seekers, out of a total of 3,554 different professions. When employers apply for new work permits in professions required by job seekers at the Authority, they are notified to contact the Ministry of Labour and Social Development and are given two weeks to review and select the most suitable qualified national cadres registered with the Ministry. Employers are also informed of the benefits available when hiring university‑educated job seekers, including free professional training and wage subsidies. Furthermore, all administrative facilitation is provided, including showcasing qualified national talent and organising interviews to select the most qualified and suitable candidates according to the required tasks. This initiative was launched on 26 May 2019. It resulted in the employment of 1,056 Bahrainis by the end of September, with approximately 63% of employers responding positively. The initiative is expected to continue and contribute even more effectively to the employment of university graduates. Employment fairs: Since 2016, the Ministry has adopted a new recruitment policy by organising specialised employment fairs, aimed at providing quality job opportunities with added value and rewarding financial returns. Seven employment fairs were organised during 2018, resulting in the employment of 2,652 Bahrainis, while a further 1,225 Bahrainis were employed through employment fairs in the first half of 2019. The Ministry maintains the names and personal data of job seekers recruited through these fairs. These fairs represent a practical embodiment of the success of the National Employment Programme. With complete transparency, all can see job vacancies, their quality, the level of wages offered, their suitability for job seekers, and the direct employment outcomes, making them one of the most successful and effective means of completing the recruitment process. Fifth: Policy to increase wages of Bahrainis in the private sector: The Government continues to raise and improve wages for Bahrainis in the private sector to ensure attraction and stability. Efforts to develop the performance of the national workforce, alongside wage‑improvement projects and the Ministry’s oversight of citizens’ wages, have produced steady gains. The average wage of Bahrainis in the private sector increased by 4.3% in the first half of 2019, reaching 756 dinars. Sixth: Unemployment Insurance The Unemployment Insurance system is a fundamental pillar of the national social protection system, ensuring comprehensive social protection for the unemployed and those laid off during periods of unemployment. Since its launch in 2006 until 2019, more than 90,000 citizens have benefited from the system. It also provides an important incentive for job seekers to register with the Ministry, establish a reliable database, and determine unemployment rates and other indicators used to develop national strategies. Seventh: Transitioning to electronic service provision: The Ministry has established an automated employment system to facilitate citizens’ access to employment services in an automated and fair manner, minimising human intervention. The system contains an accurate database of job seekers registered with the Ministry and its employment and training centres in all governorates, as well as an updated database of job vacancies offered by employers. When a job seeker meets a recruitment specialist, the system matches the job seeker’s data, qualifications and skills with employers’ talent needs, automatically sorting suitable vacancies and nominating the job seeker accordingly. Before the end of 2019, the electronic registration system will be launched in cooperation with the Information and eGovernment Authority, transforming many employment services into electronic services for job seekers. Eighth: Promising job opportunities for citizens: The challenges associated with generating employment opportunities are ongoing and require long‑term policies, foremost among them aligning education and training outcomes with labour‑market needs. They also require plans to qualify and monitor Bahrainis to capitalise on current job stock and prepare for future employment across sectors. This includes decent, value‑added jobs currently occupied by foreign workers, as well as new jobs that will emerge with economic development and rapid changes in the world of work. Examples include: Major government projects that generate thousands of quality opportunities in technical and engineering fields for citizens, such as the expansion of the Bapco refinery, the operation of Line 6 at Aluminium Bahrain (Alba), the expansion of Bahrain Airport, and other current and future projects that provide large numbers of quality jobs. Integrating Bahrainis into administrative and supervisory positions: the number of Bahrainis in senior administrative roles (manager, assistant manager or supervisor) increased by 265% over the past six years, from 1,225 in the private sector in 2013 to 4,475 in mid‑2019. Empowering women and enhancing their participation in the labour market: the Ministry increased the share of women in employment from 25% three years ago to 40% of total private‑sector employment in 2019; women’s participation in the total national workforce reached 39%. In addition, the Ministry launched a part‑time work project for women in 2015, integrating more than 5,000 Bahraini women into part‑time roles. Integrating Bahrainis into the tourism and hospitality sector: the number of citizens in this sector doubled over recent years, with 5,000 Bahrainis working in the first half of 2019. The Ministry plans to double this number over the next three years, given the sector’s significant growth potential and promise for national employment. Integrating Bahrainis into the retail sector: the number of Bahrainis in this sector rose by 92% over the past decade, from 12,000 in 2009 to 23,000 in 2019. The trade and retail sector also topped total employment at 28% in 2019 and remains a priority sector for the Ministry. Integrating Bahrainis into small enterprises: the number of Bahrainis working in enterprises with fewer than ten workers has doubled—from 7,900 ten years ago to more than 15,000 today—reflecting the success of the Government’s policy encouraging employment in small businesses. Ninth: An integrated system for monitoring market indicators: Employment and combating unemployment are among the priorities of the Government’s work programme. Accordingly, a structurally and legislatively integrated system has been established to monitor labour‑market indicators and support evidence‑based decision‑making. These indicators include employment activity, job seekers, their numbers and educational qualifications—reflecting the true state of the labour market, far from fragmented definitions. The Ministry of Labour and Social Development issues comprehensive quarterly bulletins detailing labour‑market indicators and identifying the numbers of labour‑market entrants and those employed, with full transparency. The Ministry also maintains an integrated database system linked to other relevant government agencies, ensuring continuous coordination with partners in addressing this national priority.