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Saudi Arabia Announces Labor Relation Initiative

Saudi Arabia announces the 'Labor Relations Initiative'. (SPA)
Saudi Arabia announces the 'Labor Relations Initiative'. (SPA)
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Saudi Arabia Announces Labor Relation Initiative

Saudi Arabia announces the 'Labor Relations Initiative'. (SPA)
Saudi Arabia announces the 'Labor Relations Initiative'. (SPA)

Saudi Arabia launched on Wednesday the Labor Reform Initiative aimed at improving the contractual relationship between workers and employers.

The Ministry of Human Resource and Social Development said the initiative is also aimed at supporting its vision of establishing an attractive job market, empowering employees and developing the work environment in the Kingdom.

The reforms will allow foreign workers the right to change jobs by transferring their sponsorship from one employer to another, leave and re-enter the country and secure final exit visas without the consent of their employer, which had long been required.

The initiative is slated to come into effect on March 14, 2021. Saudi Arabia boasts some 10 million foreign workers.

The reforms are part of Vision 2030 aimed at making Saudi Arabia more attractive to foreign investors, expanding the private sector and diversifying the Kingdom's oil-dependent economy.

The ministry said the initiative will improve the efficiency of the work environment in Saudi Arabia and complement similar initiatives launched in this regard, including the Wage Protection System, the digital documentation of work contracts, the Labor Education and Awareness Initiative, and the launch of "Wedy" for the settlement of labor disputes.

The initiative seeks to increase the flexibility, effectiveness and competitiveness of the labor market and raise its attractiveness in line with the best international practices and Saudi labor law.

It also activates the contractual agreement between the employee and employer based on their employment contract through digital documentation of those contracts, which will contribute to reducing the disparity between the Saudi workers and the expatriates. This, in turn, will reflect positively on the job market by increasing employment opportunities for Saudis, while also increasing the attractiveness of the local job market for top talent.

The Exit and Re-Entry Visa reforms allow expatriate workers to travel outside the Kingdom without the employer's approval after submitting a request. The employer will be notified electronically of their departure.

The Final Exit Visa reforms allow the expatriate worker to leave the Kingdom after the end of the employment contract without the employer's consent, and will notify the employer electronically with the worker bearing all consequences (financial or otherwise) relating to breaking the employment contract. All three services will be made available to the public through the smartphone application “Absher” and the Human Resources Ministry’s “Qiwa” portal.

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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.
The Commerce Department reported that the nation's gross domestic product — the nation's total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year, The Associated Press reported.
Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment.
The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target. The central bank’s favored inflation gauge — the personal consumption expenditures index, or PCE — rose at a 2.5% annual rate last quarter, down from 3% in the first quarter of the year. Excluding volatile food and energy prices, so-called core PCE inflation grew at a 2.8% pace, down from 3.7% from January through March.
The US economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Fed carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation as measured by the consumer price index has tumbled to 2.5%.
Despite the surge in borrowing rates, the economy kept growing and employers kept hiring. Still, the job market has shown signs of weakness in recent months. From June through August, America's employers added an average of just 116,000 jobs a month, the lowest three-month average since mid-2020, when the COVID pandemic had paralyzed the economy. The unemployment rate has ticked up from a half-century low 3.4% last year to 4.2%, still relatively low.
Last week, responding to the steady drop in inflation and growing evidence of a more sluggish job market, the Fed cut its benchmark interest rate by an unusually large half-point. The rate cut, the Fed’s first in more than four years, reflected its new focus on shoring up the job market now that inflation has largely been tamed.
Some other barometers of the economy still look healthy. Americans last month increased their spending at retailers, for example, suggesting that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and high borrowing rates. The nation’s industrial production rebounded. The pace of single-family-home construction rose sharply from the pace a year earlier.
And this month, consumer sentiment rose for a third straight month, according to preliminary figures from the University of Michigan. The brighter outlook was driven by “more favorable prices as perceived by consumers” for cars, appliances, furniture and other long-lasting goods.
A category within GDP that measures the economy’s underlying strength rose at a healthy 2.7% annual rate, though that was down from 2.9% in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Though the Fed now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
On Thursday, the Commerce Department also issued revisions to previous GDP estimates. From 2018 through 2023, growth was mostly higher — an average annual rate of 2.3%, up from a previously reported 2.1% — largely because of upward revisions to consumer spending. The revisions showed that GDP grew 2.9% last year, up from the 2.5% previously reported.
Thursday’s report was the government’s third and final estimate of GDP growth for the April-June quarter. It will release its initial estimate of July-September GDP growth on Oct. 30.