Cultural Dimension to Unemployment

It is not news that countries considered rich with favorable population numbers vis-a-vis resources also suffer from unemployment. But what strikes strange is these countries have substantial expatriates (both legal and illegal) working there and most of their consumables manufactured elsewhere even after decades of experiencing unemployment. And even more strange is that decades of such experience has hardly brought any ripple of change.

US and Saudi Arabia are classic examples though their backgrounds and reasons differ.

In US one theory going round is Americans should not accept employment at competitive wages at which for example Indians work there. It is felt that the American economy, which is dependent on higher spending by its population, will suffer if low wages are accepted resulting in lower spending habits. Another reason is the social security which provides dole for the unemployed. A third is the disinterest of the substantial lower middle class for higher and technical education (which is quite expensive) leaving high-end jobs to those from other countries. It is also ironic that the sense of dignity of labor inhibits ambition to climb the social ladder. I wonder whether there is a social ladder.

In Saudi Arabia the case is different. Women are prohibited from accepting many employments. There is a recent fatwa against women employed as cashiers. They just cant accept mixing of gender. Even if a Saudi wants to open shop hiring women, he has to have operations at two locations segregating men and women. This is not a sound business proposition obviously. Meanwhile thousands of girls are churned out by Universities only to twiddle their thumbs. Hard work is looked down upon by men. Hence jobs that call for strenuous working have to go elsewhere. Thirdly Saudis will not accept the wages, working hours, discipline and living conditions acceptable to say Indians, Pakistanis, Philipos, etc.

Such being the scenario and the prospects of change remaining bleak unemployment will steadily climb along with out-sourcing and employing expatriates. Not withstanding the stridency and rhetoric from those who matter. The remedies will differ suiting the peculiarity of each culture. Americans will have to shed a bit on dignity of labor while Saudis will have to cultivate it, for example.

In the meantime (while the sun shines), China and India can make hay.


…ponder