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Abstract
The prospects of tighter labor market conditions have already prompted a policy response in several GCC countries to facilitate the absorption of a large number of nationals expected to enter the labor force (see Box 2).10 These policies have many common features. Most importantly, labor market policies are formulated within a broader framework of government expenditure containment and structural reforms aimed at increasing the economies’ resilience to adverse oil market developments and enhancing efficiency by creating a more conducive environment for private sector activity.11 With the recognition that in the period ahead, the responsibility for economic growth and job creation primarily rests with the private sector, policies are being defined in the GCC countries to facilitate the employment of nationals and increase labor market flexibility.
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