Large influx of domestic workers to private sector

More than 30,000 domestic workers are reported to have applied to change their residency status from Article 20 (Household worker) to Article 18 (Private sector) since 14 July when the window for this transfer was opened by the Ministry of Interior’s General Administration of Residency Affairs.

Labor experts expect that with the deadline for such transfers ending on 12 September, there could be a further surge in transfer applications. The ‘Residency Affairs’ department is said to be coordinating with the Public Authority of Manpower (PAM) to accelerate the pace of transferring workers between the two sectors, before the deadline.

The large number of expatriates applying for the transfer highlights several factors, including the hope of many household workers to improve their financial and social status by shifting to work in the private sector. The surge in applications also indicates the imbalance in the labor market, with a dearth of workers in several sectors of the economy, especially in the construction sector, which is witnessing rapid growth due to the development of several new residential cities.

The decisions by PAM to tighten the recruitment of workers from abroad, as well as measures to ensure the academic qualification of workers in the private sector tally with their job profiles, have exacerbated the shortage of workers in private sector. Bassam Al-Shammari, a specialist in domestic workers’ affairs said, “The huge number of domestic workers wishing to transfer confirms the imbalance that the labor market has been suffering from, for a long time, amid a scarcity of workers, especially professional and skilled workers.”

Al-Shammari appealed to the First Deputy Prime Minister, Minister of Defense and Minister of Interior, Sheikh Fahd Al-Yousef to extend the transfer period by two additional months, or to allow it permanently, similar to neighboring countries that allow it, in order to fill the severe shortage of labor in the private sector.

Restrictive decisions by PAM and the resulting departure of thousands of craftsmen and professional workers from the country is reported to have contributed to encouraging a parallel labor market supplying domestic workers to work illegally in private sector companies, especially at construction sites. Elaborating on this phenomena, Al-Shmmari said that the most prominent positive aspect of the transfer decision is likely to be the reduction of thousands of domestic workers currently working illegally in the private sector.

He added that another important positive aspect of the transfer decision was that it would lead to a decline in cases between sponsors and domestic workers reported as absconding. “This is also likely to reduce the pressure on the government’s expatriate shelters where many domestic workers with cases against them have sought refuge,” said the labor specialist.

Al-Shammari stressed the necessity of opening the door to transferring expatriate workers from and to all sectors without restrictions, in a way that restores balance to the labor market and achieves the lofty vision of transforming Kuwait into a global financial and commercial center.

On the other hand, Al-Shammari pointed out that the transfer of domestic workers would double the shortage of workers in the domestic worker sector. He called on the relevant government agencies to accelerate the pace of signing memorandum of understandings with countries that are sources of domestic workers, and to start bringing them in as quickly as possible, in anticipation of any emergency that would negatively affect the market.