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Saudi Arabia Tops 67 Countries in Global Employment Growth Index

One of the employment forums in the Jazan region, located in southern Saudi Arabia (Asharq Al-Awsat)
One of the employment forums in the Jazan region, located in southern Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Tops 67 Countries in Global Employment Growth Index

One of the employment forums in the Jazan region, located in southern Saudi Arabia (Asharq Al-Awsat)
One of the employment forums in the Jazan region, located in southern Saudi Arabia (Asharq Al-Awsat)

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.

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Turkish Cenbank Inflation Forecasts Unchanged, Vows Tight Policy

Business and residential buildings are seen in Sisli district, in Istanbul, Türkiye, July 26, 2024. REUTERS/Dilara Senkaya
Business and residential buildings are seen in Sisli district, in Istanbul, Türkiye, July 26, 2024. REUTERS/Dilara Senkaya
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Turkish Cenbank Inflation Forecasts Unchanged, Vows Tight Policy

Business and residential buildings are seen in Sisli district, in Istanbul, Türkiye, July 26, 2024. REUTERS/Dilara Senkaya
Business and residential buildings are seen in Sisli district, in Istanbul, Türkiye, July 26, 2024. REUTERS/Dilara Senkaya

The Turkish Central Bank has left its mid-point inflation forecasts for end-2024 and end-2025 unchanged at 38% and 14% respectively, Governor Fatih Karahan said on Thursday, vowing to maintain a tight monetary policy stance.
In a briefing on the bank's latest quarterly inflation report, Karahan said that inflation was projected to fall to 9% by the end of 2026.
"We will decisively maintain our tight monetary policy stance until price stability is achieved," he said. "By maintaining the cautious stance in monetary policy, we envisage that inflation will decline steadily in the rest of the year."
Turkish annual consumer price inflation eased to 61.78% in July, accelerating what is expected to be a sustained slide. Economists see end-year inflation around 42%, Reuters reported.
The bank has raised its policy rate by 4,150 basis points since June last year, but has kept it unchanged at 50% since March to allow the tightening to have an impact.
Karahan said a tight monetary policy stance could be maintained even when the time comes for rate cuts.
"We need to maintain the tight stance for a long time. This does not mean that interest rates will never be cut. A tight stance can be maintained with rate cuts," he said.
The lira was largely flat at 33.5225 to the dollar after his comments, having touched a record low of 33.6700 earlier this week.
EXPECTATIONS CRITICAL
Karahan said the bank's "decisive" monetary policy stance would support the downtrend in monthly underlying inflation amid rebalancing in domestic demand, real appreciation of the lira and the improvement in inflation expectations.
"The convergence of inflation expectations to the forecast range is of critical importance for disinflation," he added.
In its last quarterly report in May, the bank nudged up its year-end inflation forecast to 38% from a previous 36% due to an unexpectedly large rise in the first four months of the year.
The tightening cycle over the last year marked a stark turnaround after years of unorthodox economic policy under President Recep Tayyip Erdogan, who in the past urged low rates despite rising prices.
On July 26, Deputy Governor Cevdet Akcay told Reuters that the bank was not even considering a rate-cutting cycle at this time as easing too early could reignite inflation and extend the pain for an economy on the verge of disinflation.
As it seeks to cool the economy, the bank is also rebuilding foreign reserves which had plunged under previous economic programs that had sought to stabilize the lira.