Saudi Arabia tops in Job Growth Index, out of 67 countries
Among 67 countries studied for the Global Competitiveness Yearbook 2024, Saudi Arabia ranked first in both the employment growth index and the labor market growth index. Trending : Free Wheelchair service at Makkah Grand Mosque for elderly and people with disabilities
Thanks to the market's speed, Saudi Arabia's labor market continued to produce record results with leading global measures, even after topping the G20 in the labor force participation rate from the year 2016 to 2021. Saudi Arabia's performance in the 2024 Global Competitiveness Yearbook was unveiled on Thursday by the Saudi National Labor Observatory.
To align with the country's objectives under this framework, the Saudi government is implementing several reforms and revisions to the labor market, including changes to laws and procedures. This is in keeping with the international accords that the Kingdom adopted, the most recent of which being the revision of several articles in the Saudi Labor Law, which was approved by the Council of Ministers. A more desirable place to work can be achieved by strengthening the market and the service and production industries.
The Global Competitiveness Yearbook 2024 states that Saudi Arabia was ranked fourth in the Skilled Foreign Labor Index and third in the Labor Market Effectiveness Legislation Index. Saudi Arabia ranked tenth in the employee training index, sixth in the working hour index, and fifth in the labor market field.
From a low of 24th in the year 2022 to a high of 17th in the year 2023 and 16th this year out of 67 nations covered by the World Competitiveness Yearbook, the Kingdom has seen steady improvement in labor market indicators, according to the most recent data from the National Labor Observatory's analysis of the labor market. Most Viewed : Saudi Arabia slaps a fine on fake engineer with 6 months jail and 50,000 riyals fine
The Saudi Council of Ministers approved a number of articles amending the Labor Law last Tuesday. This enhances job stability, develops human cadres, improves training opportunities for workers, and increases job opportunities for citizens. It also improves the local market and preserves the rights of parties to the contractual relationship.
According to Eng. Ahmed Al-Rajhi, Minister of Human Resources and Social Development, the Cabinet decision is an extension of the government's limitless support for the entire system. He highlighted that the revisions are part of the ministry's continuing effort to analyze labor market systems and regulations in light of best global practices, taking into account the progressive changes and advancements observed in markets worldwide.
The revisions are the result of collaborative work between the appropriate authorities, labor committees, the Saudi Chambers Federation, and human resources professionals from several major private enterprises.
The market's efficiency and effectiveness would be enhanced by the amendments, allowing it to better meet the demands of private sector employers and workers. National cadres would be empowered to support the goals of the labor market strategy and the development of the national economy. Read : KSA arrests 635 people for transporting passengers at airports without license
According to the Ministry of Human Resources and Social Development, the new changes were made after a thorough study that compared labor laws in various countries and looked at the best international practices. Over 1,300 people participated in the study, offering their opinions and suggestions for the proposed changes to the Labor Law articles.
This is achieved through the Istitlaa survey platform, as well as through workshops and consultative sessions where thoughts and suggestions are shared with private sector establishments, appropriate government agencies, labor committees, and other specialists and experts. There were 38 new articles added to the Labor Law, seven articles deleted, and two new articles added to the Labor Law overall.
It is worth mentioning that the number of Saudi residents who entered the private sector for the first time increased to over 34,600 last month, from 16,500 in June, more than tripling in only one month. There were more than 2.342 million citizens working in the country in July, up from 2.340 million the month before, and a total of 11.473 million people employed by private companies, up from 11.409 million in June. Join Saudi Expatriates channel on imo messenger
Saudi Arabia tops in Job Growth Index, out of 67 countries