When it comes to private sector growth, Saudi Arabia is making impressive strides. By the end of June, private sector employment in the Kingdom soared to 11.4 million, reflecting a 1.24 percent rise since April. This expansion underscores the private sector’s vital role as a powerhouse for job creation and its significant contribution to the national economy.
The National Labor Observatory’s recent report sheds light on the dynamic state of Saudi Arabia’s labor market. Their findings reveal that the private sector workforce has reached a total of 11,409,348 employees, with Saudi nationals comprising 2.34 million of this number—an increase of 16,598 since April. This growth in local employment highlights the success of governmental initiatives aimed at boosting national employment and curbing unemployment rates.
Empowering Saudis in the Workforce
The demographic breakdown of Saudis in the private sector shows that 1.38 million are men, while 957,798 are women. This shift is in line with the objectives of Saudi Vision 2030, which seeks to bring the Kingdom’s unemployment rate down to 7 percent by 2030 and raise female labor market participation to 30 percent. Economist Talat Hafiz emphasized the government’s achievements, noting that the unemployment rate for Saudi nationals dropped to 7.7 percent in 2023 from 12.3 percent in 2016. Remarkably, female participation has already reached 35 percent, surpassing the initial target.
Moreover, female unemployment has seen a significant decline, dropping to 15.5 percent in 2023 from 33 percent in 2016. This progress is a testament to the effectiveness of government policies and initiatives.
Investment in Human Capital
To further bolster private sector employment, Saudi Arabia’s Human Resources Development Fund invested approximately SR8.7 billion ($2.3 billion) in 2023, with an additional SR2.13 billion allocated in the first quarter of this year. These funds are dedicated to training, counseling, and empowerment programs, all designed to enhance job stability and strengthen private enterprises.
In the first quarter alone, these efforts enabled nearly 74,000 Saudi nationals to secure employment, while offering advisory, training, and empowerment services to over 1.1 million individuals. Furthermore, the initiative reached more than 72,000 private sector companies across various industries, with about 88 percent classified as small and medium-sized enterprises.
Saudi Arabia’s commitment to nurturing its private sector and empowering its workforce is clear. With targeted investments and strategic policies, the Kingdom is not only achieving its Vision 2030 goals but also positioning itself as a lucrative destination for foreign investors seeking growth and opportunity.
