Saudi Arabia has made notable strides on the global stage, now securing the fourth position in the World Economic Forum’s (WEF) skilled employees index, climbing three spots from its previous rank. This significant advancement underscores the Kingdom’s commitment to enhancing its workforce quality and availability, as reported by the Saudi Press Agency (SPA).
Progress in Work Arrangements
Since 2021, Saudi Arabia has improved its standing in the WEF’s work arrangements index, moving up seven places to 14th. This progress reflects the Kingdom’s efforts to create a more flexible and inclusive labor market. The Ministry of Human Resources and Social Development (MHRSD) has been at the forefront of these changes, introducing flexible work options, freelance opportunities, and telework programs to provide more employment opportunities for Saudis.
Skill Verification and Gender Equality
The MHRSD’s Skill Verification Program, a collaboration with the Ministry of Foreign Affairs, spans 128 countries and aims to validate the qualifications and skills of expatriate workers. This initiative plays a crucial role in maintaining a high standard of labor in the Kingdom.
In terms of gender equality, Saudi Arabia has made commendable progress. The Global Gender Gap Report indicates that the Kingdom now ranks 13th globally for equal pay for equal work, having advanced two positions since 2023. Women’s participation in the labor market has increased, with their representation in senior and middle management positions reaching 43.8 percent.
Women’s Empowerment and Economic Participation
The Kingdom’s efforts to boost women’s economic participation have yielded positive results. In the first quarter of 2024, the economic participation rate for Saudi women over 15 years old rose to 35.8 percent, with women now making up 34.1 percent of the labor market. The ministry aims to further increase women’s participation by 40 percent in the near future.
Strategic Initiatives and Training Programs
In December 2023, the MHRSD signed 25 agreements and training partnerships at the first annual Global Labor Market Conference. These agreements, made in collaboration with the UN International Labor Organization and the World Bank, are part of a broader strategy to enhance localization and training programs, aligning with Saudi Vision 2030.
One of the ministry’s key initiatives is the National Training Campaign, known as the Waad initiative, which aims to provide 1.16 million training opportunities by the end of 2025. This campaign includes annual training for 12 percent of Saudis, the establishment of 12 sectoral councils for skills, and the development of national professional standards for over 300 professions.
Additionally, the Skills Accelerator Program targets 162,000 private sector employees to develop high-level skills and boost productivity.
Impact on the Labor Market
These comprehensive efforts have bolstered Saudi Arabia’s position on the global labor market map. The number of Saudi nationals employed in the private sector has risen from 1.7 million in 2019 to over 2.3 million in 2024. Concurrently, the unemployment rate has decreased to 7.6 percent in the first quarter of 2024.
Saudi Arabia’s dedication to modernizing its labor market and promoting gender equality continues to enhance its global standing and influence.