The Dichotomy Between the Saudi Women's Education and Economic Participation

This paper examines three key aspects of the Saudi labor market concerning the education of Saudi women and their participation in the economic activities of the country. The first aspect examined is the current condition of human capital development in Saudi Arabia as it applies to Saudi Women. The second aspect discussed is the status of Saudi females' labor participation rate in relation to their education level. The third aspect concerns changes in females' labor participation rate compared to the targets set in the Ministry of Economy and Planning's eighth and ninth five-year development plans. This is a theoretical study conducted using data provided by the Saudi Ministry of Higher Education, the Saudi Ministry of Economy and Planning, the Saudi Arabian Monetary Agency and the Saudi Central Department of Statistics and Information. The paper demonstrates that more and more Saudi females are enrolling and graduating from colleges and universities than the amount of jobs available for them. About 68 percent of Saudi women with a post-secondary degree were unemployed in 2015 and excluded from productive activities. Such a dichotomy between females' education level and the rate of their economic participation is challenging for the Saudi Ministry of Labor. The latter has instituted several women-oriented labor laws aimed at promoting female employment. However, as of 2015, the Saudi female unemployment rate remained high at 33.8 percent and their labor participation rate low at 17.3 percent. Saudi females' labor force participation rate missed its expected target by 64.1 percent during the eighth DP while exceeding target by 168.1 percent during the ninth DP, increasing to 17.6 percent at the end of 2014. Unfortunately, this increase was accompanied by a rise in the unemployment rate. The findings of this study indicate that the Saudi Ministry of Labor still has more to do, policy wise, if more Saudi women are to become active participants of the labor market and the economy. The Saudi Ministry of Labor must make an effort to curb the unemployment of educated Saudi Women by putting in place policies that make more positions available for them when they graduate from College.