Saudi Unemployment Hits Record Low, Approaches ‘Vision 2030’ Target

Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
TT

Saudi Unemployment Hits Record Low, Approaches ‘Vision 2030’ Target

Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)

In the last quarter of 2022, the unemployment rates in Saudi Arabia hit a historical low of 8%, which is only one percentage point away from the targeted rate of 7% specified in the country's national transformation plan, “Vision 2030.”

The decrease in joblessness in the Kingdom can be attributed to the government’s activities and the private sector’s role in employment operations.

Legislation and localization programs in the country have also played a crucial role.

According to experts, government procedures and regulations related to human resources, whether in the public or private sector, have efficiently worked to create jobs and contribute to reducing the unemployment rate.

Saleh Al-Sedmi, a human resources expert, confirmed that giant projects, foreign companies entering the Saudi market, and accelerated employment in both the public and private sectors have directly contributed to the decrease in unemployment rates in the Kingdom.

Speaking to Asharq Al-Awsat, he added that Saudization programs targeting active and promising sectors and employing citizens have also helped increase the number of employed individuals in the local market.

Moreover, some foreign companies relocating their regional headquarters to the Saudi capital, Riyadh, have reinforced efforts to reduce non-employment.

The country's overall unemployment rate, including non-citizens, fell to 4.8% in the final three months of 2022, according to a statement by the General Authority for Statistics (Gastat).

Gastat also revealed that unemployment in Saudi Arabia among citizens decreased to 8% in the fourth quarter of 2022, down from 9.9% the previous quarter.

Workforce participation among female citizens is also on the rise, with unemployment among Saudi women dropping to 15.4% in the final three months of 2022 from 20.5% in the previous quarter.

Despite the economic hardships experienced by many countries worldwide, including G20 states, due to market-based challenges and geopolitical factors, the unemployment rate in Saudi Arabia exceeded expectations, according to Gastat.

The decrease in unemployment levels in the Kingdom is the result of legislation, Saudization programs, job support, and monitoring of facilities by all relevant government entities.

Plans and initiatives launched under Vision 2030 have also contributed to achieving the highest rate of labor force participation, as per Gastat.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
TT

OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.