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Case Code: CLHR014
Case Length: 4 pages 
Period: --  
Pub Date: 2009
Teaching Note: Not Available
Subject : Human Resources/ Organization Behavior
Organization :--
Industry : --
Countries : --

Gulf Crisis and its Impact on the Indian Labor Market*



The global economic crisis has also affected the opulent and extravagant Gulf countries. Experts correlated the region’s economic crisis to factors such as the explosion of the real estate boom which was basically built on borrowed funds, and to a sharp fall in oil prices. As a result, almost half of the construction projects in Dubai were interrupted. This led to a large number of construction workers from India losing their jobs, and as a result, returning home. Around the same time, a member of the Saudi royal family urged the Arab and Gulf countries to give preference to their own people while providing work. Since the Gulf countries were one of the largest employers of Indians outside India, their attempt to trim the expat population would affect India’s labor market, according to experts.
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  • Labor market
  • Human resource
  • Immigration
On February 3, 2009, Prince Turki al-Faisal Bin Abdullah (Abdullah), a member of the Saudi Royal family, said at a human resource conference in Abu Dhabi that the Arab and Gulf countries should employ their citizens rather than people from other countries....
Questions for Discussion:
1. Critically analyze the impact of the reverse migration on the Indian labor market.

2. Discuss the measures the Indian government could take to accommodate the large number of skilled and unskilled workers.



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