After successfully introducing development initiatives and programs to regulate the labor market and improve the contractual relationship between employers and employees, Saudi Arabia has managed to secure first place among the Group of 20 countries (G20) for factor productivity growth in 2022.
According to a series of modeled readings issued by the International Labor Organization (ILO) annually on worker productivity, Saudi Arabia has achieved top place among G20 countries with a 4.9% gain.
This gain represents the Kingdom’s highest productivity growth rate, which was -6.3% in 2019.
Following that, the productivity growth rate increased to 4.4% in 2021 before peaking in 2022.
Much of this is mainly attributed to the efforts of the Kingdom’s Ministry of Human Resources and Social Development in collaboration with government agencies.
This comes as they have contributed in this achievement through the initiatives in developing and organizing the Saudi labor market, enhancing its attractiveness, and improving its productive efficiency in accordance with the labor market strategy.
In 2021, Crown Prince Mohammed bin Salman bin Abdulaziz launched the Human Capability Development Program to boost Saudi Arabia’s competitiveness both locally and globally.
The Human Capability Development Program aims to ensure that Saudi citizens have the required capabilities to compete globally by instilling values and developing basic and future skills, as well as enhancing knowledge.
The Crown Prince affirmed that the Human Capability Development Program is one of the programs to achieve the Kingdom's Vision 2030, readying citizens for the current and future labor market with capabilities and ambition that compete with the world, through the promotion of values, and the development of basic and future skills, and knowledge development.
Moreover, the Ministry of Human Resources and Social Development launched in 2020 an initiative to improve contractual relationships between employers and employees.
