Data reveals that Saudi Arabia's male workforce grew at a rate of 1.7 percent, surpassing Australia's 1.5 percent and outperforming other G20 nations. The increase in female workforce participation was even more pronounced, with a 5.5 percent growth rate, significantly higher than Australia's 2.1 percent and the lower rates observed in other G20 countries.
The economic reforms initiated since the launch of Vision 2030 have been pivotal in this success. These reforms aim to diversify the economy, reduce dependency on oil, and foster a competitive labor market. The Kingdom's focus on enhancing labor market indicators, such as employment rates, labor force participation, and reducing unemployment, has shown positive results based on global benchmarks issued by the International Labor Organization.
The NLO, established in 2019, has played a critical role by providing comprehensive and accurate labor market data. This data supports the government's efforts in evaluating policies, anticipating future labor market trends, and measuring the impact of various programs. These efforts have been instrumental in overcoming challenges posed by the COVID-19 pandemic, ensuring the Kingdom's rapid economic recovery and sustained growth.
Saudi Arabia’s unemployment rate has seen a decline, dropping to 5.8 percent in the second quarter of 2022 from 6 percent in the first quarter. This decrease aligns with the objectives of the Saudization scheme, officially known as Nitaqat, which aims to increase the participation of Saudi nationals in the workforce. Major regulatory and economic reforms under Vision 2030 have accelerated this process, with significant strides in both public and private sectors.
Women’s participation in the Saudi workforce has also seen remarkable progress. As of March 2022, women comprised 33.6 percent of the workforce, a substantial increase from 17.4 percent five years earlier. This growth has been supported by policies and initiatives designed to create an inclusive and supportive work environment for women. As a result, the unemployment rate for women fell to its lowest in 20 years, reaching 20.2 percent in the first quarter of 2022.
The Kingdom’s commitment to fostering entrepreneurship and stimulating investment in small and medium enterprises (SMEs) has also contributed to workforce growth. By the end of June 2022, the number of registered SMEs had risen by 25.6 percent from the fourth quarter of 2021, reaching 892,063. This growth trajectory reflects the Kingdom’s strategic push to diversify its economy and promote non-oil sectors.
Saudi Arabia's success in achieving the highest workforce growth rates among G20 countries underscores the effectiveness of its economic and labor market reforms. These reforms have not only enhanced the country's economic resilience but also positioned it as a leading player in the global labor market, ensuring sustainable growth and development in line with Vision 2030.
Sources:
- Arab News Japan
- Saudi Press Agency
- Asharq Al-Awsat