Saudi youth unemployment to exceed 42% by 2030, says BofAML

Unemployment among youth in Saudi Arabia is forecast to rise to 42 percent by 2030 from 33.5 percent last year, according to a study by Bank of America Merrill Lynch.

While the public sector is overcrowded, the private sector in the region is still “largely underdeveloped to create sufficient formal jobs,” Arabian Business quoted the study as saying.

Up to 55 percent of employers in the kingdom think Saudi graduates are prepared for the job market, it added.

The study noted that the MENA region spends $84 billion on education— 9 percent of total global expenditure— but the spending fails to deal with education deficiencies in low/middle income countries that could pose a security threat in the Middle East.

Pilot projects on dual vocational training show some positive results but lack sustainability and vocational schooling seem "obsolete and underrated,” the report added.