Saudi Arabia makes significant strides in global labor market indicators

PHOTO

Saudi Arabia has achieved significant progress in global indicators related to flexible working arrangements, ease of finding skilled employees, and equal pay for equal work, according to the World Economic Forum's (WEF) 2024 reports.

The Ministry of Human Resources and Social Development (HRSD) has played a pivotal role in enhancing the Kingdom's global standing. Since 2021, Saudi Arabia has climbed seven places in the flexible work arrangements index, now ranking 14th globally. The Ministry has transformed the traditional labor market by introducing new work patterns, including flexible work, freelance work, and telework programs, thereby creating more job opportunities for Saudis.

In terms of the ease of finding skilled employees, Saudi Arabia has made notable advancements, moving up three places since 2021 to rank 4th globally in 2024.

The Ministry has implemented several initiatives to support the training and qualification of national workers. This includes the "Skill Verification Program," conducted in partnership with the Ministry of Foreign Affairs, which verifies the qualifications and skills of expatriate workers from 128 countries.

The Ministry has also supported job seekers through the parallel training initiative, which aims to empower women and increase their labor market participation. This initiative offers training programs focused on fundamental and technical skills, career guidance, and employer-provided tasks to ensure graduates' success.

Additionally, the Ministry has launched the Wa'ad National Training Campaign to provide 1,155,000 training opportunities by the end of 2025. This initiative, part of the Ministry's strategy to support and train national cadres in partnership with the private sector, targets several goals. These include training 12% of Saudis annually, establishing 12 sectoral councils for skills in collaboration with the private sector, and creating national professional standards for over 300 professions. The Skills Accelerator Initiative, targeting 162,000 private sector employees, aims to develop high-level skills and enhance productivity.

In the Global Gender Gap Report, Saudi Arabia has advanced two places in the equal pay for equal work ranking since 2023, now placing 13th globally in 2024. The participation of women in the labor market has risen, reaching 34.1% in the first quarter of 2024, with an economic participation rate of 35.8% for Saudi women over the age of 15. Efforts to promote women's empowerment have increased the percentage of women in senior and middle management positions to 43.8% in the first quarter of 2024. The Ministry aims to further raise women's participation to 40% in the near future.

These efforts have significantly strengthened Saudi Arabia's global position and showcased its ability to influence the labor market. The Kingdom has achieved a record number of Saudis working in the private sector, increasing from 1.7 million in 2019 to over 2.3 million in 2024. Furthermore, the unemployment rate has declined to 7.6% in the first quarter of 2024.