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Saudi Arabia Leads G20 with Booming Job Market Performance

People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
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Saudi Arabia Leads G20 with Booming Job Market Performance

People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)

Saudi Arabia has made significant strides in increasing employment and modernizing work patterns in recent years. As a result, the Kingdom led the G20 in workforce participation rates from 2016 to 2021, driven by a strong local market.

According to recent data from the General Authority for Statistics (GASTAT), the unemployment rate for Saudis fell to 7.6% in early 2024, down from 7.8% at the end of 2023. This brings it closer to the Vision 2030 goal of 7%.

A new report from the National Labor Observatory showed Saudi Arabia’s workforce participation rose from 55% in 2016 to 61.2% in 2021, the highest increase among G20 countries. Japan followed with a smaller increase of 2.2 percentage points.

The report noted that female workforce growth in Saudi Arabia was 5.5%, significantly higher than Australia’s 2.1% and other G20 nations. Male workforce growth was 1.7%, ahead of Australia’s 1.5% and other G20 countries.

Saudi Arabia’s workforce is growing due to several factors: initiatives promoting female participation, a large young population, and strong economic growth.

For people aged 25 and older, Saudi Arabia’s workforce participation rate is 70%, second only to Indonesia’s 72%.

The report also showed Saudi Arabia has the second-highest male workforce participation rate in the G20, following Indonesia.

Moreover, Saudi Arabia is one of the top ten G20 countries for employment, with a rate of 57%. The Kingdom has also achieved the highest increase in female employment, rising by 10% from 2016 to 2021. Male employment remains high at 76%.

The National Labor Observatory credits this growth to targeted strategies for developing skills, aligning education with job market needs, and supporting job creation and localization.

Additional factors include preparing workers for technological changes, promoting modern work options, like remote and flexible jobs, and improving support programs, such as income assistance and social protection.

Experts told Asharq Al-Awsat that new policies and programs have significantly improved the Saudi labor market, increasing opportunities for both citizens and residents.

Badr Al-Anzi, a board member of the Saudi Human Resources Society, told Asharq Al-Awsat that new work options like remote and flexible jobs have helped many people join the workforce.

Recent government regulations, including new rules for flexible work, are expected to further increase employment and support the Kingdom’s future goals.

Al-Anzi noted that the latest changes in flexible work regulations are part of ongoing efforts by the Ministry of Human Resources and Social Development to review rules, support businesses, protect workers, and make the job market more flexible and appealing.

He added that the government’s focus on creating more job opportunities and providing additional work options has led to higher workforce participation, helping Saudi Arabia top the G20 in employment rates from 2016 to 2021.

Majd Al-Mohamade, former vice president of the national labor committee, told Asharq Al-Awsat that Saudi Arabia leads the G20 in workforce participation, and that this success is attributed to its attractive job market and modern work patterns, which draw in more talent.

Al-Mohamade also noted that the arrival of foreign companies and their establishment of regional headquarters in Saudi Arabia has created new job opportunities and attracted skilled workers.

He praised initiatives from the Human Resources Development Fund that encourage the private sector to hire local talent.

He added that ongoing efforts by the Ministry of Human Resources and Social Development to localize various professions are boosting job availability and helping lower the unemployment rate.

Job growth in the tourism sector and increased employment for women are major factors contributing to the overall decrease in unemployment rates, including a significant drop in female unemployment, he remarked.

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Tesla, Chips, and Banks Tumble as China’s Retaliation Stokes Fears of Widening Trade War

Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
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Tesla, Chips, and Banks Tumble as China’s Retaliation Stokes Fears of Widening Trade War

Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)

US chip companies, banks and oil majors fell sharply on Friday after China retaliated to Trump's tariffs with steep duties, in an intensifying trade war between the world's two largest economies that cast a shadow on global growth.

China slapped additional duties of 34% on US goods, set to go into effect April 10. It also announced curbs on exports of some rare-earths and added several US firms to its export control list and the "unreliable entities" list, which allows Beijing to take punitive action.

The action followed US President Donald Trump's 34% duties on imports from China announced on Wednesday, which triggered a massive market meltdown on Thursday. The latest levies were on top of the 20% tariffs on China imposed earlier this year.

Investors were already fretting over potential supply chain disruptions, price hikes and demand destruction for everything from cars and smartphones to sneakers.

Shares of Tesla and Apple - among consumer tech companies with a large exposure to China - were down 8% and 4%, respectively. While both companies have local production in China, duties on US-imported parts could squeeze margins and force price hikes.

"Several tech companies have established local supply chains in China. Most source components from China already, and hence, disruptions should be controllable, though we do expect price hikes on parts and components not being sourced from China," said Nishant Udupa, practice director at research firm Everest Group.

For Tesla, already in a bruising price war with local Chinese rivals, raising prices would pressure demand further.

"Apple's smartphone sales had already been declining in China for some time, faced with growing, cheaper competition. So, the prospect of steep import duties being imposed is likely to sharply erode sales even further," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Shares of Alphabet, Microsoft and Amazon.com were subdued as they had limited exposure to China.

GE Healthcare's stock slid nearly 13%, following China's export controls on a rare-earth metal that is used in MRI scans. The country's announcement of an anti-dumping investigation into imports of certain medical CT tubes from the US and India added to the worries.

SEMICONDUCTORS

Chip companies are set to face headwinds, too, although US exports a much smaller amount of electronic equipment to China. Shares of Intel, Applied Materials and Qualcomm, all of which count on China for at least 30% of revenue, were down 5% to 8%.

The US exported more than $15 billion worth of electrical and electronic equipment to China in 2024, with most of the value coming from integrated circuits, transistors and other semiconductor devices, according to economic data provider Trading Economics. In comparison, the U.S. imported more than $127 billion in electronic equipment from China last year.

"Semiconductors will feel a greater impact ... We're already witnessing a domestic ecosystem evolve in China, with direct alternatives for every major US semiconductor firm. This trend is likely to accelerate," Udupa said.

NATURAL RESOURCES

Crude prices, already under pressure from an expected OPEC+ oil output hike in May, added to the losses.

Oil majors Exxon and Chevron fell more than 5%. Top oilfield service company SLB dropped 10%, and the biggest US refiner by volume, Marathon Petroleum, fell 6%. Chemicals company DuPont slid 12%.

"The trade war escalated, recession fears rise and consequently oil demand growth is to take a sizeable hit," said Tamas Varga, analyst at PVM.

China is also the largest market for US agricultural products, even as imports of US farm goods dropped last year.

Shares of top grain traders like Archer-Daniels-Midland fell 8% while Bunge was down 6%. Fertilizer firms Mosaic and CF Industries fell 10% and 8%, respectively.

China's tariffs on US soybean exports would increase the cost to local customers, especially animal feed producers, and could prompt the country to source more from Brazil and Argentina, said Morningstar analyst Seth Goldstein.

BANKS

Banks' shares extended their declines from Thursday. The industry has been clouded by fears that a trade dispute could temper consumer confidence, reduce spending, weaken loan demand and pressure fees from advising on deals.

JPMorgan Chase, the biggest US bank by assets, sank 7%. Wall Street titans Goldman Sachs and Morgan Stanley dropped more than 7% each.

MACHINERY

Heavy machinery makers Caterpillar and Deere fell 5% and 4%, respectively, on concerns over demand from one of their largest overseas markets.

China is a major buyer of construction and agricultural equipment and a key player in global infrastructure spending.

RETAIL

Shares of major luxury and footwear firms reversed coursed after Trump said Vietnam's leader To Lam has offered to reduce tariffs on US imports. Ralph Lauren's shares were up 2.5%, while Tapestry rose as much as 3.6%.

Nike gained 4%, Roger Federer-backed On jumped 7.2% and Lululemon Athletica rose 3%. The stocks had initially fallen after retaliatory tariffs by China, a major revenue contributor.