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Saudi Labor Market Makes Improvements to Support Establishments, Employment

The Employment Support Program is part of government support initiatives to empower establishments and ensure their stability and business development, Asharq Al-Awsat
The Employment Support Program is part of government support initiatives to empower establishments and ensure their stability and business development, Asharq Al-Awsat
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Saudi Labor Market Makes Improvements to Support Establishments, Employment

The Employment Support Program is part of government support initiatives to empower establishments and ensure their stability and business development, Asharq Al-Awsat
The Employment Support Program is part of government support initiatives to empower establishments and ensure their stability and business development, Asharq Al-Awsat

In a move set to boost employment in Saudi Arabia, the Kingdom has implemented a host of new improvements to its labor market. The enhancements aim to enable and develop private sector institutions through supporting employment.

The new procedures aim to empower establishments and their continuity in the Saudi labor market, specialists told Asharq Al-Awsat. Moreover, they seek to raise employment rates by instating new controls.

On Thursday, the Human Resources Development Fund (HADAF) announced positive amendments to the controls of its Employment Support Program, allowing the largest number of private sector institutions to benefit from the plan.

The development and improvement of the controls of the Employment Support Program come as a continuation of HADAF’s goal to empower private sector enterprises and support the wages of Saudis working there, said HADAF Director-General Turki Al-Jawini.

Al-Jawini urged all enterprises to benefit from the Program through the National Labor Gateway (TAQAT).

For his part, Mansour Al-Shathri, head of the Human Resources and Labor Market Committee at the Chamber of Commerce and Industry in Riyadh, told Asharq Al-Awsat that the new improvements contribute to reducing unemployment rates and enable enterprises to continue in the labor market.

The Employment Support Program is part of government support initiatives to empower establishments and ensure their stability and business development, considering the current exceptional economic situations and the impacts of the novel Coronavirus (COVID-19).

The Program also supports the wages of Saudis who were employed in various private sector establishments starting from 30% to 50% of the employees’ monthly wages for two years, provided that the employees’ wages range between SR 4000 and 15,000.

Establishments get 10% additional support when employing women, persons with disabilities, employing in non-major cities, and in small and medium enterprises for each of the categories mentioned, provided that the maximum support does not exceed 50% of the employee’s monthly wage, or SR 3000, whichever less.

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.