Saudi Press

Saudi Arabia and the world
Wednesday, Jul 02, 2025

41,200 domestic workers quit; Major labor shortage expected

41,200 domestic workers quit; Major labor shortage expected

In mid-April, the National Assembly’s Interior and Defense Committee approved a proposal submitted by a member of parliament to allow the issuance of visas for new domestic workers, reports Al-Rai daily.

In this regard, the Economist Intelligence Unit indicated according to this development Kuwait is likely to resume the recruitment of domestic workers, as the sector – and the overall economy – suffers from a shortage of employment, expecting that the government will liberalize the domestic labor sector, while continuing efforts to modify the long-term demographic imbalance.

In 2021, about 41,200 domestic workers left Kuwait, which reflects a broader trend that has been greatly exacerbated by the Covid 19 pandemic – the departure of expatriates since the beginning of ‘Corona’ in early 2020, which caused a severe economic recession, reduced job opportunities in the private sector, and revealed the lack of financial sustainability to absorb more citizens in the overcrowded public sector, while the private sector depends on expatriate workers, prompting the government to speed up the Kuwaitization process. The Economist Intelligence stated that despite the improvement in the financial situation, due to the rise in oil prices, the government continued to implement nationalization policies, adding, “Since it is unlikely that Kuwaiti citizens will carry out household chores, this sector suffers from a significant labor shortage.”

Announced

Last January, the government announced that domestic workers would lose their residency permits if they stayed outside the country for more than 6 months. Although this could be seen as a way to quickly return the workers to Kuwait, rather than deporting them from the country, the decision exacerbated the problem of Kuwaiti families who depend on domestic workers during Ramadan, as their wages rose dramatically.

The Economist Intelligence suggested that the National Assembly, which has populist tendencies, and which strongly opposes measures that place financial burdens on Kuwaiti citizens, would soften its anti-immigration stance and cooperate with the government to reform the visa system for domestic workers and allow them to be brought in.

The Economist Intelligence expected that the government will amend visa regulations and seek to correct the imbalance in the domestic labor sector, but it is nonetheless likely that the authorities will continue to implement policies designed to replace foreign workers with nationals in their quest to reverse the 70-30 ratio of citizens to expatriates, which will continue causing labor shortages in several sectors. The latest development confirms the unit’s expectations that foreign labor will continue to be a central issue in domestic politics throughout the forecast period for 2022 to 2026.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
×