Abstract

The objective of this paper concentrates on determining the relationship between unemployment and economic growth in Saudi Arabia for the period 2000-2015 in order to explanation of the employment, unemployment level and its determinants to increase the employment level and avoiding the harmful effects of unemployment problems. The question to be raised is does recruitment rely on the public sector? Does the creation of job opportunities in the state’s public sector have a negative or positive effect on the private sector through the effect of withdrawing its specialized technical cadres? Is the private sector growth real or illusive? Is the economic growth adequate to reduce the unemployment rate among Saudis? The results obtained show that, there are a positive relationships between the employment and real income, real investment, real government expenditure and real value of exports. On the other hand, there are negative relationships between employment and the real value of imports. The economic growth was not adequate in reducing the unemployment rate among Saudis. There is a reversal relationship between unemployment rates and the economic growth which does not effectively work in the Saudi economy. Saudis prefer to work with government sector not in private sector; Government must stimulate Saudis to work in private sector. This paper used the annual data from 2000 to 2015 for Saudi Arabia. All data in this paper was obtained from Saudi Arabian Monetary Agency (SAMA) and World Bank Development Indicator.

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