Building a resilient labor market is a continuous effort that requires a commitment to supporting the needs of business on the one hand and the workforce on the other.
Addressing challenges with the right strategies involving all stakeholders is of great importance. This provides meaningful employment opportunities and prepares the market to better weather economic storms.
In an effort to address those challenges, Saudi Arabia will be hosting the first Global Labor Market Conference (GLMC). It seeks to advance current labor market resilience for all parties involved.
Fostering labor market harmony
The conference’s core aims encompass assessing the present labor market situation and encouraging cooperative efforts to improve it. It will host government officials, experts, innovators, and business leaders. Additionally, the event will include scholars, non-governmental organizations, and international organizations like the UN to collectively address these pertinent issues.
The Saudi Minister for Human Resources and Social Development Ahmed bin Sulaiman Al-Rajhi believes that the conference is a crucial initiative to foster labor market harmony amidst unparalleled disruptions.
In addition, Al-Rajhi highlighted the role Vision 2030 plays in promoting a stronger labor market at the national, regional, and international levels. He underscored the Kingdom’s ambition to set a precedent for resilient labor markets. Thus, he stressed the importance of extensive collaboration within the global community.
GLMC will focus on multiple aspects of the labor market including:
- Global labor market catalysts
- Challenges regarding skills and productivity
- Needed changes to the labor market
- Promoting labor opportunities for all
- Artificial Intelligence
- the right way to deregulate
- The future of the labor market
Challenges of rapid technological advancementsÂ
The Ministry recognizes the need to engage in discussions about the latest goals and innovative ideas related to global labor markets.
This aligns with its vision, which emphasizes the role of employers and governments in fostering a balanced and inclusive labor market. Meanwhile, it recognizes the importance of adopting emerging models and approaches that align with the Kingdom’s goals.
In addition, with the rise of technological advancements like Artificial Intelligence (AI), new challenges in the labor market arise. Job displacement, skills mismatch, uneven economic impact, and global competition are all challenges that Saudi Arabia recognizes.
Therefore, managing such challenges demands comprehensive solutions and proactive strategies that ensure the market’s smooth transition.
Read: Saudi Arabia Economy: PIF’s Biggest Investments By Value
Expanding female workforce
Saudi labor market reforms which fall under the Vision 2030 diversification program have focused greatly on increasing female participation. This initiative aims to increase private sector employment opportunities for women to three million by 2030.
According to a recent S&P report, labor market reforms have resulted in a substantial increase in female labor force participation among Saudi nationals. In 2022, the female participation rate nearly doubled, rising from 19 percent in 2016 to almost 36 percent.
As a result of this growth, the overall labor force participation rate reached a historic peak of 61.7 percent in March 2023. S&P Global Ratings anticipates that if the current pace of female participation persists, it will contribute an economic boost of $39 billion by 2032.
Therefore, economic diversification, increasing female participation, and embracing technological advancements will build a stronger and more resilient Saudi labor market.
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