Saudi Arabia’s labor market continues to set records and lead global rankings. The Kingdom, which was at the top of G20 workforce participation from 2016 to 2021, now leads in employment and labor market growth among 67 countries in the Global Competitiveness Yearbook 2024.
The Saudi government is making several changes to labor laws to align with national strategies and international agreements. Recently, the Cabinet approved amendments to the labor law to support the market and improve conditions in productive and service sectors, aiming to create a more attractive work environment.
According to the National Labor Observatory, Saudi Arabia ranked third in labor market effectiveness legislation and fourth in skilled foreign labor in the Global Competitiveness Yearbook 2024.
The Kingdom also achieved fifth place in the labor market index and sixth in working hours. Additionally, Saudi Arabia ranked tenth in employee training.
Job Opportunities
The latest report shows that Saudi Arabia has improved its labor market rankings, moving from 24th place in 2022 to 16th place this year.
Last Tuesday, the Saudi Cabinet approved amendments to labor laws to improve job stability and protect rights, while enhancing human resources development and increasing job opportunities for Saudi citizens.
Minister of Human Resources and Social Development Eng. Ahmed Al-Rajhi said these changes reflect the government's strong support and ongoing efforts to align labor laws with global best practices.
The amendments involved extensive consultations with private sector companies, government agencies, and labor experts.
National Workforce
The amendments are expected to boost market efficiency and meet the needs of employers and employees. Over 1,300 participants contributed to the revisions, which included 38 changes, the removal of seven provisions, and the addition of two new provisions.
In July, the number of Saudi citizens joining the private sector for the first time rose to over 34,600, more than doubling from June. The total number of private sector workers reached 11.473 million, with Saudi employees numbering over 2.342 million.
