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Labour force in GCC industries rises to 1.6m

The number of manufacturing factories in the GCC has seen an increase in labour force from 774,000 workers in 2005 to more than 1.6 million workers in 2015, according to a report from the Gulf Organisation for Industrial Consulting (GOIC).

The report on ‘Labour Force and Productivity of Manufacturing Industries in GCC Countries, pointed out that labour force has more than doubled, hence achieving a compound annual growth rate of 7.8 per cent.

GOIC highlighted that “labour plays a key role in industrial production. In fact, they form an added value when coupled with the availability of raw materials. Therefore, labour productivity is seen as a criterion to measure industrial development and the efficient use of the labour force. It also sheds light on the strengths and weaknesses of an industrial activity.”

GOIC stated that “manufacturing labour force in GCC countries is a main pillar of industrial production, particularly when it comes to SMEs. In fact, these industries rely heavily on labour force and less on capital, since their activities are mainly based on human effort as opposed to big factories that rely on machines and advanced technologies.”

Furthermore, the manufacture of fabricated metal products that includes a variety of industrial activities such as metal products, electrical equipment, transport equipment and others is one of the industrial activities that are in need of labour force the most.

Its share of the total manufacturing labour force in GCC in 2015 was around 25.8 per cent, followed by the manufacture of cement and building materials (about 16.8 per cent), and the manufacture of chemical and petrochemical products (15.8 per cent).                    ONA