11,000 Egyptians return from Kuwait after downsizing jobs

Kuwait has announced that the country’s labor market has lost 199,000 non-Kuwaiti workers, mostly from the Egyptian and Indian nationalities, covering 15 different activities, which is the largest number in the history of the country.

According to Rassd News Network, there are 11,000 Egyptian workers that have lost their jobs in Kuwait amid downsizing jobs in the oil rich country within the Covid-19 consequences.

The report covered a period of 12 months between March 2020 and March 2021.

Egypt’s unemployment rate rising

According to a report by the Central Agency for Public Mobilization and Statistics (CAPMAS) in mid-August 2020, the unemployment rate in Egypt rose to 9.6% in the second quarter of the year due to coronavirus.

Egypt’s unemployment rate rose to 9.6% in the second quarter of 2020 compared with 7.5% a year earlier, due to the coronavirus pandemic, the statistics agency CAPMAS has reported.

The rate had stood at 7.7% in the January to March quarter.

Affected sectors

According to the Kuwaiti labor market system report, the real-estate sector witnessed the highest loss of workers with a total of 53,000 workers leaving the country, followed by the wholesale and retail trade sector, and the vehicle and bicycle repair sector, which lost nearly 37,000 workers.

With the continued closure of the labor market and the delay in identifying the aspects for recruiting workers from abroad in light of the COVID-19 pandemic, no sector has yet recorded an increase in the number of workers in the aforementioned period, with the exception of the electricity, gas, steam and air conditioning sector, in which the number of workers increased by 369.

There was a noticeable decrease in the number of registered workers in the construction sector by more than 30,000 workers, in addition to the manufacturing sector, which lost 27,000 workers.

In the sectors of information and communications, financial and insurance activities, education, arts, entertainment and leisure, human health and social work, the number of workers who left was limited. In the first half of this year, the labor market witnessed an active movement in the process of manpower transfer within the private sector. The transfer ceiling for this category had touched 107,000 transfers.

The total number of renewed work permits for employment exceeded 402,000 during the first half of this year, while the number of workers in the private sector stabilized at 1.5 million workers.

The Kuwaiti Public Authority for Manpower (PAM) revealed the mechanism for issuing work permits to those recruited with a commercial visit visa.

It stated that, “If employers register entry visa transactions for holders of commercial visit visas as a work permit on the electronic forms portal, they must ensure that a copy of the commercial visit visa and a copy of the criminal status sheet for the employee are attested by official certifications.”

PAM explained that work is ongoing to complete the procedures for dealing with labor departments by approving a work permit, and then the visa data will be withdrawn, so that employers can follow the procedures for the issuance of a first-time work permit on an easier portal in accordance with the procedures and the decisions in force, in light of the current circumstances resulting from the measures taken by the state to combat the COVID-19 pandemic.