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HRSD give speech on strategic transformation in Labor Market in Saudi Economic Association

Publication date: 18 June 2023 - 29 Dhu al-Qi'dah 1444
شعار انجليزي

H.E., the HRSD Minister, Eng. Ahmed bin Sulaiman Alrajhi stressed that the decisions on the Saudization of professions and activities have contributed to employing more than 500 thousand citizens in the private sector since the year 2019. This, in turn, contributed to the empowerment of the national cadre and the increase of their market share in the labor market. 

In addition, during his speech, today, in the Saudi Economic Association, on strategic transformation in the Saudi Labor Market, he said: “All strategic initiatives of labor market will have been completed by the end of 2025”. He indicated that the strategy made many achievements which contributed to the prosperity of the Saudi labor market. The result of this strategy can be reflected by the economic indexes, including the unemployment rate, the workforce’s economic engagement, and workers’ productivity. H.E. clarified that all goals of woman empowerment was achieved by the end of the year 2022 which was planned to be in 2025. He also praised the woman’s role as an active and important partner in the national development as she proved her ability to work and assume responsibilities.

He added that the work modes (freelance, flexible, remote) will transfer economy from shadow to engagement in increasing the domestic product, increasing the income of individuals, particularly university students, and significantly creating job opportunities for women. He clarified that shared economy is an important topic and related to citizens in different fields. Our goal is to reduce the illegal labor use of shared platforms and create job opportunities for Saudis.

H.E. indicated the HRSD integration with the educations system in order to adapt to the labor market. The journey of adaptation begins with specifying the skills required in the labor market and their levels through the supply and demand prediction unit, the strategy of skills, and the programs and initiatives qualifying Saudi youth for work. The journey ends with following up the employment of youth according to available requirements and skills. He also clarified that there are many indicators by which performance can be measured in this framework. The most eminent of such indicators are: the unemployment rate, the rate of engagement in the workforce, the percentage of the private sector engagement in employment, the rank in the human capital indicator, the employment rate of higher education graduates over 6 months, and other relevant indicators.

H.E. clarified that in last May a workshop was organized in collaboration with representatives of 45 government and private universities. Besides, reports and data on labor market supply and demand until 2025 were reviewed. Such reports and data show that we have specialties that the labor market does not need. We need such specialties based on limited numbers of graduates. Some other specialties are still needed, such as healthcare and technology.

H.E. gave important pieces of advice to Saudi youth before they get into the labor market, which is to be interested in education as education is the primary core of knowledge, skill improvement, the right choice of the specialty needed by the labor market, and skill development and use before graduation, along with accepting the first job after graduation for gaining more experiences and skills on a continuous and unstopping basis.

An open dialogue was held between H.E., the Minister and the attendees. H.E. answered their questions and suggestions, in collaboration the experts, specialists, media persons and university students in a number of specialties.

H.E. concluded his speech with giving thanks to the President and employees of the Saudi Economic Association for organization, praising the Association’s communication with the society’s organizations and its leading role in supporting the strategic direction for achieving the Kingdom’s Visions 2030.


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