Population & Labor Force Bahrain Economic and Strategic Outlook
Global Investment House – Kuwait – Bahrain Economic and Strategic Outlook – Population and Labor Force- The population of Bahrain grew at a CAGR of 2.6% during the period 2001-2006. The total population of Bahrain by the end of 2006 stood at 0.74mn, an increase of 2.5% over 2005. Absolute increase in the population for 2006 over the previous year was about 17,916 as compared to 17,485 in 2005. The local Bahraini population was 0.46mn or 61.8% of the total population, which was marginally down from 61.9% recorded in 2005 and 62.0% in 2004. The annual growth in Bahraini population was around 2.3% in 2006, whereas the growth of non-Bahraini population was around 2.7% in 2006. Unlike some other GCC countries, local Bahraini population will continue to account for the majority of the population. However, the proportion of foreign workers is likely to continue rising as the expatriate population grows a little more rapidly than the number of citizens.
Bahrain's overall population is still dominated by males (around 57.5%). However, the percentage of males among the non-Bahraini population is 69%, whereas among the Bahraini population the percentage of males is around 50.4%. Demographic profile illustrates that there are nearly 27.3% of population below the age of 14, whereas only 2.5% of the population is above 65 years of age.
Table 01: Age Distribution of Bahrain’s Population
2003 2004 2005 2006
Population Under Age 14 190,108 194,828 197,800 202,565
Population Above Age 65 17,375 17,798 18,321 18,756
Source: Central Informatics Organization, Bahrain
The total employment in private and public sector in Bahrain was around 359,193 by the end of Q3-2007, which was around 53.6% of the total population of the country. The employment generation witnessed around 13.1% growth in year to date figures.
The public sector employment figures are highly skewed in favor of local Bahraini population with local Bahraini population comprising almost 90% of the workforce in the public sector. This figure has remained more or less the same during the past five years.
Employment in the public sector marginally declined in the first nine months of 2007 over 2006 year ending figures. On the other hand, the private sector has registered a growth of 14.7%. Non-Bahraini dominates the private sector employment and comprised almost 80% of the workforce in Q3-2007 with the percentage on the rise since 2001. The employment of non-Bahraini in the private sector increased by 15.7%, whereas the Bahraini increased by 11.0% in the year to date figures.
The private sector to public sector employment ratio that stood at 5.8 in 2003 has gradually increased to 9.3 at the end of Q3-2007 indicating the emphasis of the government on private sector growth. This ratio will continue to increase further as the private sector grows more rapidly than the government sector.
Table 02: Employment Scenario
2004 2005 2006 Q3-2007
Total Employment 285,390 336,508 351,862 397,918
Private Sector 247,814 299,080 313,039 359,193
- Male 220,878 268,580 283,533 326,119
- Female 26,936 30,500 29,506 33,074
- Bahraini 66,229 71,900 65,614 72,820
- Non-Bahraini 181,585 227,180 247,425 286,373
Public Sector 37,576 37,428 38,823 38,725
- Male 21,861 21,495 22,160 21,567
- Female 15,715 15,933 16,663 17,158
- Bahraini 33,754 33,691 34,771 34,661
- Non-Bahraini 3,822 3,737 4,052 4,064
Source: Central Informatics Organization, Bahrain
Bahrain has taken vital steps towards a labor market reform which is an essential stride to ensure that the human capital of the country is developed and that employment is made more attractive for localization as well as to improve performances of businesses. The strive towards labor reform will impact the Bahrain’s economy and raise standards of living as well as pose a challenging commitment to the improvement of services in Bahrain
Legal changes have also been made to the sponsorship system that has made it easier for expatriate workers to change jobs. Beginning July 1, 2008, a new quota system will come into force which will reduce the percentage of Bahraini nationals required to be employed by the private firms. The private sector's dependence on expatriate labor is likely to increase further over the next few years given the much lower wage expectations of most expatriates, and shortages of marketable skills among nationals.
However, while holding out the opportunity for more jobs for foreigners, the Bahrain government also announced a new series of levies on both foreign workers and their employers, also due to come into effect as of July 1, 2008.
At that point, the Labor Market Regulatory Authority (LMRA) would be authorized to charge a fee of US$530 every two years for work visas, while employers will have to pay a monthly levy of US$26 for each foreigner employed with them. The new levies would help strike a balance between reform requirements and development of the labor market, with a renewed focus on the employment of Bahrainis.
