Wages Rise by 40% Due to Labor Shortage; New Visas Are Needed Despite Construction Delays
Kuwait is grappling with a severe labor shortage that has resulted in significant delays in construction projects, particularly in Mutlaa City. The shortage has led to a sharp 40% increase in wages for the limited number of available workers, exacerbating the crisis.
Challenges in Housing Projects Due to Fear of Inspections
The labor crisis has been aggravated by the fact that many workers are not sponsored by companies, making them reluctant to work on projects due to the fear of inspections and potential deportation. A viral video from Mutlaa City shows workers fleeing on foot during a security checkpoint, highlighting the widespread fear and confusion among expatriate laborers.
Public Authority for Manpower (PAM) and Labor Issues
A source from the Public Authority for Manpower (PAM) emphasized that while their role is to oversee inspections of commercial establishments, they must also address the issues faced by these workers and regularize their residency status. This step is critical for ensuring the timely completion of ongoing housing projects.
Calls for New Visas and Organized Labor Management
Business owners and housing project specialists have called for urgent solutions, including issuing new visas to bring in additional workers. Fahad Al-Arbash, Head of the Union of Restaurants and Cafes, pointed out that high labor costs have forced citizens to rely on unorganized labor, leading to project delays and incomplete constructions.
Impact on Mutlaa City and Other Development Projects
Mishaal Al-Hajri, head of the volunteer committee for Mutlaa City, noted that the project is among the most affected by the labor shortage. The demand for skilled workers far exceeds the supply, with available labor unable to meet the needs of both the Mutlaa City project and other state development initiatives. Al-Hajri urged PAM to allow companies to meet their actual labor needs through proper contracts.
Wage Inflation and the Need for Skilled Workers
Saba’a Al-Dousari, head of the Mutlaa City Volunteer Committee, highlighted the significant increase in daily wages due to the shortage of construction craftsmen. He called for a more organized approach to managing expatriate workers, including reopening visa issuance for skilled workers from Arab countries, particularly Egypt.
Legal and Social Challenges
Dr. Mukhlef Al-Enezi, spokesperson for the residents of Mutlaa City, stressed the importance of skilled workers in completing housing projects. He pointed out that many workers, despite receiving advance payments, are unable to continue work due to arrest or issues with their residency status. Dr. Al-Enezi urged the state to find solutions to regularize these workers’ conditions and retain their skills for ongoing projects.
The labor shortage in Kuwait has led to a 40% wage increase and significant delays in housing projects, particularly in Mutlaa City. With calls for issuing new visas and organizing labor management growing louder, there is a pressing need for the government to take action and ensure that these critical projects are completed efficiently.