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Saudi Arabian Labour Market Data Outlines the Challenges of Reform

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  • Brian Sturgess

Abstract

Saudi Arabia’s Council of Ministers approved an ambitious National Transformation Programme (NTP) in June 2016 with the aim of carrying out a complete restructuring of the economy. The implementation of Vision 2030 has major implications for the structure of Saudi Arabia’s labour market with the creation of 1.2 million non-oil private sector jobs, most of which are expected to be taken up by citizens. Official data shows the labour market has a number of distinctive features which will challenge the implementation of Vision 2030: an overreliance on expatriate labour; a preference by nationals for public sector jobs; a gender imbalance; persisting structural unemployment and problems in balancing labour supply and demand. The government is attempting to change the operation and structure of the labour market by a set of policies involving quotas, subsidies, taxes, penalties and the provision of information services, but for a number of reasons change is unlikely to proceed smoothly in the next few years.

Suggested Citation

  • Brian Sturgess, 2019. "Saudi Arabian Labour Market Data Outlines the Challenges of Reform," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 20(1), pages 151-190, January.
    • Handle: RePEc:wej:wldecn:739
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