Saudi Arabia Leads G20 with Booming Job Market Performance

People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
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Saudi Arabia Leads G20 with Booming Job Market Performance

People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)
People attend a job fair organized by the Human Resources Development Fund. (Asharq Al-Awsat)

Saudi Arabia has made significant strides in increasing employment and modernizing work patterns in recent years. As a result, the Kingdom led the G20 in workforce participation rates from 2016 to 2021, driven by a strong local market.

According to recent data from the General Authority for Statistics (GASTAT), the unemployment rate for Saudis fell to 7.6% in early 2024, down from 7.8% at the end of 2023. This brings it closer to the Vision 2030 goal of 7%.

A new report from the National Labor Observatory showed Saudi Arabia’s workforce participation rose from 55% in 2016 to 61.2% in 2021, the highest increase among G20 countries. Japan followed with a smaller increase of 2.2 percentage points.

The report noted that female workforce growth in Saudi Arabia was 5.5%, significantly higher than Australia’s 2.1% and other G20 nations. Male workforce growth was 1.7%, ahead of Australia’s 1.5% and other G20 countries.

Saudi Arabia’s workforce is growing due to several factors: initiatives promoting female participation, a large young population, and strong economic growth.

For people aged 25 and older, Saudi Arabia’s workforce participation rate is 70%, second only to Indonesia’s 72%.

The report also showed Saudi Arabia has the second-highest male workforce participation rate in the G20, following Indonesia.

Moreover, Saudi Arabia is one of the top ten G20 countries for employment, with a rate of 57%. The Kingdom has also achieved the highest increase in female employment, rising by 10% from 2016 to 2021. Male employment remains high at 76%.

The National Labor Observatory credits this growth to targeted strategies for developing skills, aligning education with job market needs, and supporting job creation and localization.

Additional factors include preparing workers for technological changes, promoting modern work options, like remote and flexible jobs, and improving support programs, such as income assistance and social protection.

Experts told Asharq Al-Awsat that new policies and programs have significantly improved the Saudi labor market, increasing opportunities for both citizens and residents.

Badr Al-Anzi, a board member of the Saudi Human Resources Society, told Asharq Al-Awsat that new work options like remote and flexible jobs have helped many people join the workforce.

Recent government regulations, including new rules for flexible work, are expected to further increase employment and support the Kingdom’s future goals.

Al-Anzi noted that the latest changes in flexible work regulations are part of ongoing efforts by the Ministry of Human Resources and Social Development to review rules, support businesses, protect workers, and make the job market more flexible and appealing.

He added that the government’s focus on creating more job opportunities and providing additional work options has led to higher workforce participation, helping Saudi Arabia top the G20 in employment rates from 2016 to 2021.

Majd Al-Mohamade, former vice president of the national labor committee, told Asharq Al-Awsat that Saudi Arabia leads the G20 in workforce participation, and that this success is attributed to its attractive job market and modern work patterns, which draw in more talent.

Al-Mohamade also noted that the arrival of foreign companies and their establishment of regional headquarters in Saudi Arabia has created new job opportunities and attracted skilled workers.

He praised initiatives from the Human Resources Development Fund that encourage the private sector to hire local talent.

He added that ongoing efforts by the Ministry of Human Resources and Social Development to localize various professions are boosting job availability and helping lower the unemployment rate.

Job growth in the tourism sector and increased employment for women are major factors contributing to the overall decrease in unemployment rates, including a significant drop in female unemployment, he remarked.



Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar weakened broadly on Thursday, while the euro rallied after President Donald Trump announced harsher-than-expected tariffs on US trading partners, unsettling markets as investors flocked to safe havens such as the yen and Swiss franc.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation, Reuters reported.

The dollar index, which measures the US currency against six others, fell 1.6% to 102.03, its lowest since early October.

The euro, the largest component in the index, gained 1.5% to a six-month high of $1.1021.

Trump has already imposed tariffs on aluminium, steel and autos, and has increased duties on all goods from China.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

The risk-sensitive Australian dollar added 0.56% to $0.63365, while the New Zealand dollar climbed 0.9% to $0.5796.

The yen strengthened to a three-week high against the dollar and was last up 1.7% at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"Negotiations are now going to be front of mind. This is probably the other big part of why we're seeing some of these currencies outperform," said Nicholas Rees, Head Of Macro Research at Monex Europe.

"It's very difficult actually to see how other countries make concessions that would encourage the US to lift these tariffs. And I think that's a big underpriced risk."

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Worries about a global trade war have intensified since Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index is down more than 5.7% this year.

"These tariffs have certainly significantly increased the risks to the downside for global growth, so on balance we think that will eventually start to become more supportive again for the dollar," said Lee Hardman, senior currency analyst at MUFG.

In Asia currencies, China's onshore yuan slid to its weakest level against the dollar since February 13. China's offshore yuan also hit a two-month low.

The Vietnamese dong slumped to a record low.

Elsewhere, the Mexican peso and Canadian dollar strengthened.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.