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Asharq Al-Awsat
30-06-2025
- Business
- Asharq Al-Awsat
Saudi Women Propel Unemployment to Record Lows
Saudi Arabia has achieved the lowest unemployment rate in its history, dropping to 6.3% in the first quarter of 2025. The milestone was driven largely by the growing participation of Saudi women in the workforce, marking a major shift in employment under Vision 2030. The figure represents an unprecedented annual decline of 1.3 percentage points and a drop of 0.7 points from the previous quarter. The General Authority for Statistics reported that Saudi women's unemployment fell to 10.5%, its lowest level ever recorded, after dropping more than 11 percentage points since 2021. Women's labor force participation also rose to 36.3%, while their employment rate climbed to 32.5% of the total population. These gains reflect the impact of policies designed to expand opportunities and improve the quality of jobs available to women. Human resources specialist Ali Al Eid described the achievement as the result of effective collaboration between government entities and the private sector. 'What we see today is the outcome of years of focused policies to empower national talent and create a work environment that fosters growth,' he told Asharq Al-Awsat. Al Eid noted that targeted initiatives such as Saudization, skills development, and support for entrepreneurs contributed significantly to reducing unemployment. He added that shifts in employment preferences, especially among young Saudis, have accelerated these changes. He emphasized that the Saudi labor market has proven resilient despite recent global challenges. The expanding role of women has been especially critical in lowering unemployment and strengthening economic participation. Al Eid highlighted that young Saudis' increasing focus on vocational training and acquiring specialized skills has lifted labor participation to record highs in recent years. 'Continuing professional development programs is essential to ensure national talent is prepared for the future,' Al Eid said, pointing to Vision 2030 projects in tourism, technology, industry, and logistics as key sources of quality jobs. He also underscored the importance of aligning education outcomes with labor market needs to close skill gaps and prepare young people for emerging sectors. 'What has been accomplished is a significant milestone on the road to broader success,' he added. 'The next priority is to focus on the quality and sustainability of jobs and to enable Saudis to take on leadership and specialized roles that will drive long-term development.' Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics, said the results demonstrate the effectiveness of the Kingdom's economic and social reforms. He noted that the creation of more diverse, higher-quality roles - particularly those suited to women's skills - has been instrumental in lowering unemployment. 'These positive indicators will help attract new investment, especially as the country prepares for major projects extending through 2034,' Al-Jassar said. He added that reaching a 5% unemployment rate under Vision 2030 has become a realistic goal. Among Saudi men, the unemployment rate declined slightly to 4%, while their participation rate rose to 66.4%. Employment among Saudis aged 25–54 increased to nearly 66%, with unemployment falling to 5.4%. Overall, including Saudis and expatriates, unemployment dropped to 2.8%, compared to 3.5% a year earlier. Labor participation rose to 68.2%. These results follow Saudi Arabia's early success in meeting its target of reducing unemployment to 7%, five years ahead of schedule, prompting a new objective of 5% by the decade's end.


Asharq Al-Awsat
25-05-2025
- Business
- Asharq Al-Awsat
Gov't Push Spurs Firms to Hire More Saudis
Saudi Arabia's drive to nationalize its labor force gathered pace in the first quarter of 2025, with more than 143,000 Saudis landing jobs thanks to government-backed employment programs, a 93% jump compared to the same period last year. The figures, announced by the Human Resources Development Fund (Hadaf), underline the growing impact of empowerment initiatives under the Kingdom's Vision 2030 reform plan. They also reflect a stronger alignment between public and private sector efforts to boost workforce participation. The surge in employment was fuelled by a wide array of support programs offered by the fund, including training, career counselling, and empowerment services, which benefited more than 1.18 million individuals in Q1 alone, marking a 4% year-on-year increase. The number of companies that tapped into these programs also rose to over 98,000, up 37% from the previous year. Nearly 94% of those were small, medium, or micro enterprises, indicating a broad base of impact across different regions and sectors of the Kingdom. Ali Al Eid, a human resources expert, told Asharq Al-Awsat that Hadaf's continued role in shaping the job market has strengthened its partnerships across industries and accelerated the empowerment of local talent. 'The high growth rate in employment support reflects a tangible shift in national empowerment strategies,' Al Eid said, adding that the programs are increasingly tailored to meet both immediate labor market needs and long-term ambitions. He noted that targeting small and medium-sized enterprises (SMEs) was particularly significant, as they form the backbone of the local economy and often represent the segment most in need of support. 'The Saudi labor market is evolving rapidly, focusing on investing in local talent, promoting entrepreneurship, and expanding employment in promising sectors,' Al Eid said. 'Investing in human capital is the smartest route to economic sustainability, and we're now seeing the results of Vision 2030 in action.' Badr Al-Enzi, another HR consultant, highlighted the pivotal role played by Hadaf since the launch of Vision 2030, particularly in empowering young Saudis for private sector roles. He said Hadaf initiatives have enhanced job security and upskilled Saudis in technical and specialist fields, especially in fast-growing industries such as automotive manufacturing, logistics, digital technology, and app development. 'These programs were crucial in supporting Saudization policies rolled out by the Ministry of Human Resources,' Al-Enzi said. 'They also played a central role in boosting women's participation in the workforce, which has more than doubled from 17% in 2017 to 36% by the end of 2024.' Last year alone, around 437,000 Saudi nationals joined the private sector, bringing the total number of Saudis employed in the sector to nearly 2.4 million by the end of 2024. Al-Enzi added that 43.8% of Saudi working women now hold mid-to-senior managerial roles, signalling major strides in female empowerment and progress toward Vision 2030's targets. Hadaf disbursed 1.83 billion riyals ($488 million) in support programs during Q1 2025, a figure that reflects the scale of the Kingdom's investment in building a qualified capable workforce to steer its economic and social transformation.


Asharq Al-Awsat
18-05-2025
- Business
- Asharq Al-Awsat
How Artificial Intelligence Is Reshaping Saudi Arabia's Labor Market
Artificial intelligence (AI) and emerging technologies are increasingly becoming the cornerstone of Saudi Arabia's future labor market as the Kingdom undergoes rapid digital transformation. While automation is boosting efficiency and productivity, it also underscores the urgent need to reskill the current workforce and prepare younger generations with future-ready skills. The widening gap between traditional education and evolving market demands calls for decisive action. This shift does not signal the disappearance of jobs, but rather their redefinition. Routine tasks are giving way to roles requiring analytical thinking, digital fluency, and creativity. The very nature of employment is transforming from simply executing tasks to managing complex solutions. AI is accelerating this evolution across key sectors including healthcare, manufacturing, and finance, where local case studies show how the technology is cutting costs and improving operational performance. Yet, despite the opportunities AI presents for growth and job creation, significant challenges remain. Chief among them are high adoption costs, underdeveloped infrastructure, and a shortage of qualified professionals. Addressing these issues will require coordinated efforts from the government, private sector, and educational institutions to ensure a balanced digital transformation, one that empowers human potential rather than marginalizing it. Ali Al-Eid, a human resources expert, told Asharq Al-Awsat that digital transformation, future readiness, and awareness of key job skills are now central pillars of Saudi Arabia's national development strategy. While some fear AI may lead to mass job losses, Al-Eid said it will instead reshape existing roles. He expects routine jobs to fade, replaced by positions that demand analytical, digital, and advanced interpersonal skills. Employment will increasingly prioritize flexibility and innovation over years of experience, he added. AI is boosting automation, enabling big data analysis, and improving the speed and accuracy of decision-making, he noted. These changes are reducing waste and enhancing efficiency in sectors like healthcare, logistics, finance, and human resources, where faster decisions and improved outcomes are already evident. He stressed the need for comprehensive strategies that foster innovation, encourage the adoption of new technologies, and ensure a fair transition for workers. This includes investing in reskilling programs and providing social safety nets. According to Al-Eid, the success of future employment initiatives hinges on the private sector's commitment to keeping pace with technological change. Economic policy expert Ahmed Al-Shehri echoed these views, noting that AI is rapidly redrawing the contours of Saudi Arabia's labor market, fueled by Vision 2030's push to diversify the economy and drive innovation. He said AI is automating routine tasks and improving work quality across public and private sectors. Based on global trends, he estimated that between 25 and 30 percent of existing jobs in the Kingdom could be affected by AI by 2030. At the same time, the technology will create new opportunities in high-tech fields and increase productivity by streamlining operations. The oil sector is already seeing tangible benefits. Saudi Aramco, for example, uses AI for predictive maintenance, reducing costs and boosting operational efficiency by up to 20 percent. Al-Shehri added that many educational institutions and stakeholders are prioritizing future skill development to close the gap between conventional education and the needs of a high-tech economy. He said current policies are capable of striking a balance between accelerating technological adoption and preserving existing jobs, thanks to incentives and public-private partnerships, such as those driving mega-projects like NEOM. Tarek Mansour, senior partner at McKinsey, highlighted the findings of recent research by the Future Investment Initiative in collaboration with his firm. According to the study, automation and skill development are key drivers of productivity in the region. It estimated that productivity could grow by 2.7 percent annually by 2030, driven by modern technologies like generative AI, which boosts human creativity in critical sectors such as healthcare and scientific research. Mansour noted that the benefits of digital transformation extend beyond productivity gains. New jobs will be created, and talent shortages in specialized fields, particularly in science, technology, engineering, and mathematics, could be eased. Gulf countries already possess a strong talent pool and can launch large-scale skill-building programs, especially in strategic and technical sectors, to meet evolving labor market demands and improve youth employment prospects, he remarked. Saudi Arabia, he added, has made impressive strides in embracing technology, with a clear focus on AI readiness and the development of digital infrastructure to keep pace with rapid technological change. A 2024 survey conducted for the study found that 56 percent of companies in the Middle East and North Africa are using AI, compared to 85 percent in the European Union and the United States. However, Mansour pointed out that key barriers to adopting advanced technologies include implementation costs, infrastructure limitations, and a lack of skilled workers. In the Middle East, 52 percent of business leaders cited high costs as a major obstacle, while 45 percent pointed to infrastructure challenges.