Saudi Arabia ranks first among G20 countries in labour force growth rate
The Kingdom of Saudi Arabia (KSA) has been ranked first in the labour force growth rate among the Group of 20 (G20) countries during the period 2012 – 2021, according to a report by the National Labour Observatory (NLO).
The NLO and the Saudi Labor Market Indices were launched in 2019 with the aim of regulating the labour market. In recent years, the Kingdom has undertaken a massive economic diversification. The country has also shown positive signs in the main labour indicators, which include the annual labour force growth, labour force participation rate, employment and unemployment rates.
As per a report by Saudi Arabia’s Central Department of Statistics and Information, the unemployment rate in the Kingdom decreased to 5.80 per cent in the second quarter of 2022 from 6 per cent in the first quarter of 2022. The unemployment rate of women was also the lowest in 20 years in the first quarter of 2022.
The NLO shows comprehensive and accurate data about the labour market. It also analyses policies and programs and measures their impact. The NLO also aims to boost Saudization, officially known as the Saudi nationalisation scheme or Nitaqat. The country is also boosting its efforts to create more jobs in line with Saudi Vision 2030. Under the Vision 2030 agenda, the Kingdom aims to increase the participation of young Saudis in the economy and promote non-oil sectors. The country has also planned expansions of 12 strategic industrial sectors namely – aerospace, automotive, maritime, renewables, chemicals, machinery and equipment, medical devices, pharmaceuticals, food processing, building materials, mining industries, and military industries.
Last week, the Kingdom was ranked the best in the region and third in the world for its digital government transformation by the World Bank’s GovTech Maturity Index (GTMI) for 2022. The Kingdom was in the group of “very developed countries”, according to the index report.