Workforce in the Kingdom

The Workforce in the Kingdom of Saudi Arabia comprises human resources qualified to meet the demands of the labor market in the Kingdom. The Kingdom supports its workforce through various programs and initiatives administered by the Ministry of Human Resources and Social Development. These efforts aim to enhance the efficiency and appeal of the Saudi labor market while ensuring a safe working environment and fostering sustainable social development. Moreover, there is a focus on elevating public sector productivity, refining its systems, and bolstering flexibility. Saudi Vision 2030 has introduced the Human Capability Development Program as part of the vision programs to enhance citizens' skills. This program spans from early childhood education through general and university education to technical and vocational training, to training and lifelong learning.

Since the launch of the five-year development plans in the Kingdom, the demand for the workforce has experienced a steady increase during the initial three plans. However, the fourth development plan witnessed a shift towards Saudization, a trend that the fifth development plan continued and extended through to the tenth development plan, as the prioritization of developing human resources and enhancing their employment became a key pillar.

The seventh development plan delineated strategic directions for addressing the workforce issue, allocating significant resources to it and establishing clear objectives for workforce development. Subsequent development plans maintained a focus on enhancing and integrating the national workforce, with the ninth development plan reiterating the importance of prioritizing the strategic direction, set forth in the eighth plan on human resource development.

The ninth development plan concentrated on workforce development and the implementation of the Saudi employment strategy, crafted by the Ministry of Labor, in collaboration with the private sector and certain government agencies. This strategy, endorsed by the Council of Ministers in 2008, serves as a guiding framework for tackling workforce and employment challenges in the Kingdom over a twenty-five-year period, delineated into short-term, medium-term, and long-term phases.

The Kingdom has approved regulations to regulate the labor market and enacted laws that protect the parties involved in labor relationships, in accordance with Article Twenty-Eight of the Basic Law of Governance. This article stipulates the facilitation of work opportunities for all capable individuals. The regulations encompass controlling the labor market and providing job opportunities for the national workforce. One legislation in this regard is the Labor Law, issued by Royal Decree in 2005 and subsequently amended by Royal Decree in 2020. This law contains numerous provisions governing recruitment processes, employment of non-Saudis, training and qualification, labor relations, and terms and conditions of work, among others.

Additionally, these regulations include the regulation of the Human Resources Development Fund, Social Insurance Law, Unemployment Financial Assistance regulation, Unemployment Insurance Law, and the allocation of financial resources to address difficulties in obtaining employment.

The Ministry of Human Resources and Social Development serves as the legislator and regulator of the Saudi labor market. Its strategic objectives aim to enhance the efficiency and appeal of the labor market, improve social safety and protection, bolster the contribution of the non-profit sector to the national economy, foster sustainable social development, elevate public sector productivity, and develop its laws and enhance their flexibility to better support the gross domestic product.

The ministry's strategy encompasses four sectors: labor, social development, civil service, and shared services. It provides services to the public, private, and non-profit sectors as a legislative entity, service provider, and supportive entity. Through collaboration with individuals and relevant entities, it endeavors to improve the work environment, making it more appealing with high-quality standards. Additionally, the aim is to increase the participation of Saudi men and women in the labor market and empower women through initiatives, projects, and programs that enhance economic efficiency and productivity, sustainable development, and sustainable institutional excellence.

The Kingdom's efforts to support and develop its workforce have continued, and within the programs of Saudi Vision, it launched the Human Capability Development Program in 2021. This program aims to ensure the readiness of citizens at all stages of life by investing in national talents and competencies, ensuring alignment between educational outcomes and labor market needs, promoting a culture of innovation and entrepreneurship, as well as developing and rehabilitating skills.

Saudi Vision 2030 has worked to empower the workforce with the necessary skills and has adopted legislation and policies to correct the labor market, empower youth, and enhance their employment opportunities. According to the annual report of Saudi Vision 2030 issued in 2023, the unemployment rate for Saudis decreased to 7.7 percent, and to 4.4 percent for the total population of the Kingdom. The rate of localization in high-skilled jobs reached 39 percent.

The ministry’s efforts and initiatives have resulted in increased employment rates, as per Saudi Vision 2030 report. About 97,000 employers benefited from the Human Resources Development Fund (HADAF), and approximately 288,000 citizens received support from the fund for employment in the private sector. The value of its investments amounted to about SAR6.8 billion for programs focused on training and employment in the private sector. Additionally, more than 343,000 Saudi employees joined the private sector following the Saudization decisions, bringing the total number of Saudis in the private sector to about 2.2 million. Furthermore, 1.1 million jobs were created, and fourteen professions were localized in the logistics sector. The percentage of Saudization in communications and information technology professions reached about 65 percent, creating 354,000 jobs. In the culture sector, the number of employees exceeded 216,000, while the number of jobs in the tourism sector reached 913,000. More than 49,000 job opportunities were created for Saudi social security beneficiaries.

In an effort to achieve greater flexibility in employment and increase the rates of the national workforce in the Saudi labor market, the government sector has launched initiatives to qualify and train Saudi men and women according to the needs of the labor market. These initiatives include the Unified National Platform for Employment, a platform that connects job seekers with opportunities available in the public and private sectors, and the service 'Register for Support Jobs (SAAID)' to enable job seekers with a high school diploma or below to access suitable opportunities.

The national labor portal, 'Taqat', is a key tool to advance the national workforce and expand job opportunities. It is a comprehensive electronic platform for the Saudi labor market, encompassing both public and private sectors, as well as employment service providers. It connects job seekers and employers, facilitating the provision and exchange of employment and training services.

The 'Taqat' platform includes several technical programs that provide information bases for the workforce and introduce available training and employment opportunities. These programs include: Momaken (Enabler), which offers training support to private sector establishments. 'Tamheer' is an on-the-job training program targeted at Saudi male and female graduates from local and foreign universities.

The platform programs also encompass the freelancing support program (ride-hailing), which targets workers involved in passenger transportation through applications, as well as the Tourism Human Capital Development. Additionally, the platform's programs and initiatives feature the 'Tawteen' program, which aims to create job opportunities for male and female job seekers.

The Ministry of Human Resources and Social Development and the Human Resources Development Fund “HADAF” launched the program on supporting children's hospitality for working women 'Qurrah' and the transportation program for working women 'Wusool', aiming to empower Saudi women, raise their participation rate in the labor market, and support their job stability. The ministry also launched the 'Qiwa Platform' for empowerment, localization, and business continuity, and the 'Nitaqat' initiative aimed at raising the rate of Saudization in the private sector. Additionally, the ministry issued the 'Guide to Business Ethics,' a set of principles and rules of work ethics to enhance trust between parties in the labor relationship.

The Kingdom has been keen on documenting and digitizing employment contracts and has provided several services, including the “Mudad” platform to develop and facilitate administrative and financial procedures for establishments, the launch of the “subscriber contracts documentation service” at the General Organization for Social Insurance, and the “Wage Protection” program to monitor the disbursement of wages to all male and female workers in private sector establishments. Moreover, the ministry launched the 'National Strategic Program for Safety and Occupational Health' and the 'Occupational Safety and Health Management Regulations.' In the field of career development, the ministry launched an initiative to develop leadership in government entities, an initiative to develop the competencies of public sector employees, and an initiative to empower women in the civil service.

The Kingdom has allocated programs to qualify and train the workforce, including: the 'Doroob' platform, which works to develop the capabilities and raise the skills of the national workforce, both male and female, and provide them with job skills. Other programs include the Subol program, which provides vocational education and guidance services, and the Support Program for Professional Certifications, which encourages and motivates the workforce through accredited professional certificates to develop their skills and expertise in the specialized fields required in the labor market.

The Human Resources Development Fund, in partnership and integration with the Ministry of Education, launched the 'Vocational Guidance and Counseling in Schools' initiative in 2023. This initiative aims to align educational outcomes with the requirements of the labor market and university and professional specializations, enabling male and female students to learn about the skills and the current and future market requirements.