Context for question 1
Source material: Employment and unemployment in Kuwait
| Kuwait fact file | 2023 |
|---|---|
| labour force | 2.4m |
| gross domestic product (GDP) | $160bn |
| surplus on the current account of the balance of payments | $64bn |
Kuwait, a country in the Middle East, has a relatively large current account surplus. Countries, including China, India and South Korea, buy oil and electrical equipment from Kuwait. These countries’ firms also pay to have ships insured in Kuwait and for financial advice from Kuwaiti banks. Products that are exported create employment and income. However, Kuwaiti exports are then not available to be consumed in Kuwait.
Kuwait is a high-income country with a relatively long life expectancy. It has good quality education and healthcare. The price of a range of products is cheaper in Kuwait than in Europe and the United States. For example, in 2023, the price of jeans and monthly access to the internet were cheaper in Kuwait. These price differences may change in the future as a result of changes in indirect taxes.
In recent years, there has been an increase in the number of Kuwaiti workers employed in the country’s high-technology industries. Kuwait had a low unemployment rate in 2023, but a relatively high youth unemployment rate. Table 1.1 shows the unemployment rate and the youth unemployment rate (15 –24 year olds) in selected countries in 2023.
| country | unemployment rate (%) | youth unemployment rate (%) |
|---|---|---|
| Argentina | 6.8 | 30.0 |
| Australia | 3.7 | 10.8 |
| Bahamas | 10.1 | 30.5 |
| Eswatini | 22.6 | 51.0 |
| Jordan | 19.2 | 40.5 |
| Kuwait | 2.2 | 25.5 |
The Kuwaiti Government aims to reduce youth unemployment and to encourage an increase in the proportion of workers employed in the private sector. Whether workers will move from the public sector to the private sector will depend on, for example, wages, job security and working conditions in the two sectors.
Infrastructure projects in Kuwait influence employment. One example is the construction of the Mubarak Al-Kabeer port on Boubyan Island, a very popular tourist area in Kuwait. It is hoped that the port will change the cost of sea transport and create many jobs for Kuwait’s young workers. However, some are concerned that the port may create noise, water and air pollution and have an impact on the wildlife on and around the island. There is also the possibility that the land could be put to better use.