Saudi Arabia's Labor Market Evolves: Lower Unemployment, More Women Working

The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has recently shared a series of significant strides towards creating a more efficient and inclusive labor market, in line with the Kingdom's ambitious Vision 2030. These strides encompass a broad spectrum of initiatives aimed at protecting workers' rights, ensuring workplace safety and health, nurturing national talent, and achieving a sustainable balance in the labor market through the implementation of relevant laws and regulations.

In 2023, the ministry reported notable progress across various sectors. A key highlight is the training of over 1,000 government employees at international agencies to enhance their work effectiveness. This initiative contributed to the job engagement index for civil servants exceeding the 2022 target, indicating a more motivated public sector workforce. Additionally, the National Training Campaign (Waad) successfully incentivized the private sector to train workers, benefiting over 16,000 trainees across diverse sectors.

The Skills Accelerator Program was another significant initiative, aimed at increasing the efficiency of Saudi employees in the private sector, particularly in industries crucial to the national economy. This program saw more than 10,000 individuals gaining from self-employment and specialized skills development programs. Furthermore, the integration of over 500 people with disabilities into the workforce underscores MHRSD's commitment to inclusivity.

Efforts to ensure timely wage payments through the "On Time" campaign resulted in over 700,000 establishments complying with the wage protection system, covering more than nine million private sector employees. These efforts have led to a notable decrease in unemployment rates from 12.8% in 2017 to 8.6% in the third quarter of 2023. Moreover, working conditions for expatriate workers improved by 73% in 2023 compared to 2020.

Health and safety measures saw a dramatic increase in implementation across establishments, rising from 15% in 2019 to 71.27% in 2023. Compliance with the wage protection system also saw a significant increase from 50% in 2017 to 86.9% in the third quarter of 2023. The percentage of employed individuals with disabilities rose from 7.7% in 2016 to 12.6% in the first half of 2024.

MHRSD has also placed a strong emphasis on supporting working women through dedicated programs like Wusool and Qurrah, which provide transportation and childcare services respectively. Over 25,000 women participated in training programs designed to enhance their job market skills. These initiatives have contributed to increasing women’s participation in the labor market from 21.2% in 2017 to 34.2% by the third quarter of 2023.

The ministry's commitment to fostering a more efficient and inclusive labor market is evident through these initiatives and their results. The increase in women's participation in senior and middle management positions from 28.6% in 2017 to 43.7% by the third quarter of 2023 further highlights this commitment. As MHRSD continues its efforts, it is expected that these initiatives will have an even greater impact on Saudi Arabia's workforce and overall economic progress.

With inputs from SPA