Bahrainis employment and wages increases by 2.1%

Posted on » Sunday, August 01, 2010

The number of employed Bahrainis increased to 139,347 showing a positive annual growth rate of 0.5%, in addition, the total number of employed persons in Bahrain decreased from 607,570 in Q2 2009 to 597,040 at the end of Q2 2010 representing a negative annual growth rate of -1.7%. For non-Bahraini workers, the decrease was -2.4%.

LMRA`s newsletter, which monitors quarterly changes of key labour market indicators, announced that the total number of irregular workers as of end of June 2010 reached 41,168, of which 16,181 are absent from work, 18,464 terminated, and 6,523 expired visas. This number does not include: (a) foreign workers working illegally with another employer; (b) domestic workers in illegal status; (c) workers with dependant visas; and (d) persons who entered the country with visit visas but working.

Average monthly wages are now BD318 representing 5.0% increase compared to Q2 2009. The number of new work visas issued by LMRA during second quarter of 2010 for regular workers decreased by 12.4% compared to the same quarter last year. The share of small organizations (less than 10 workers) remains unchanged at 45% of total regular work visas.

LMRA’s CEO Mr. Ali Radhi said that the total number of new visas issued by LMRA during 2010 Q2 was 30,960, of which 24,229 were for regular workers, 186 for investors, 524 for temporary workers and 6,021 for dependents. Compared with the same quarter a year before, the total number of work visas issued by LMRA witnessed a decrease: 30,960 in 2010 Q2 against 36,362 in 2009 Q2.

The total number of visa renewals was 36,140 in 2010 Q2 of which 27,327 were for regular workers, 106 for investors, 330 for temporary workers and 8,377 for dependents. Similar to the pattern of new visas, the number of renewals has decreased during 2010 Q2 (decrease of 6.8% for renewal of regular workers visas compared to the same period a year before).
 
In 2010 Q2, the total number of terminations was 18,660, of which 15,667 were for regular workers, 6 for investors, 549 for temporary workers and 2,438 for dependents.
 
About Mobility Mr. Radhi said that the number of successful mobility transactions during Q2 2010 was 2,819. Mobility after termination or expiry of work visas continues to represent the biggest share among mobility transactions (63% in 2010 Q2 and to 64% last quarter). Mobility with consent of previous employers share stands unchanged at 36%. Only 14 transactions were for mobility without consent of previous employers representing less than 1% of total.
 
Mobility transactions made by wholesale and retail, Construction, and Real estate sectors represented 65% of total. Mobility transactions made by economic units of 1-10 workers registered the highest number of mobility transactions (1,366) representing 48% of total.

Mr. Radhi said that the median wages of Bahraini employees increased this quarter to reach BD438 representing a change of 2.1% in comparison to the same quarter last year (BD429, Q2 2009). The increment in this quarter is however lower than what it was in the previous quarter. The private sector continues to show higher increment than the public sector with an annual growth rate of %4.9 (BD320).

The labour cost gap between Bahraini and non-Bahraini workers in the target sectors (construction, trade, hotels and restaurants and small scale manufacturing) continues expanding to reach BD235 showing an increase of BD16 compared to the same quarter a year before.