Saudis bemoan soaring labour costs after migrant exodus

Image
AFP Jeddah
Last Updated : Nov 07 2013 | 9:28 PM IST
Saudis have begun complaining of surging labour costs following the exodus of a million foreign workers, although economists insist there will be long-term planning benefits from fully regulating the market.
Professionals in the kingdom, both Saudi and expatriate, say the freelance tradesmen who used to queue for odd jobs in public squares have virtually disappeared since police patrols began the strict enforcement of tough labour laws this week, rounding up thousands of illegals for deportation.
They have been forced to turn instead to authorised service companies, which charge double the rate or more to hire out electricians or plumbers.
"I had great difficulty finding a carpenter even at a higher price," complained primary school teacher Majed Hasan.
"I have been told that freelance carpenters have disappeared. I went to a services company and was told that they can provide me with a carpenter for 150 riyals ($40) -- double what I used to pay."
From Monday, the authorities began rounding up thousands of illegal foreign workers following the expiry of a final amnesty for them to regularise their work status in the kingdom.
Those considered illegal range from overstaying visitors and pilgrims who seek jobs, to shop assistants and day labourers working for someone other than their official sponsor, a requirement in Saudi Arabia as in most other Gulf states.
Nearly a million migrants -- Bangladeshis, Filipinos, Indians, Nepalis, Pakistanis and Yemenis among them -- took advantage of the amnesty to leave the country.
Another roughly four million regularised their situation by finding employers to sponsor them but in so doing virtually emptied the market of cheap freelance labour.
"I usually find a plumber quickly. This time, I've roamed three areas and I couldn't find a single one," complained Mahmud Badr, an Egyptian doctor who lives in the kingdom's commercial capital Jeddah.
He said he was shocked by "how service workers vanished, after they were so easy to find" queueing in public squares for the chance to earn a few dollars.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Nov 07 2013 | 9:28 PM IST

Next Story