RIYADH: Saudi Arabia’s private sector has seen a 45 percent increase in average wages over the past five years, driven by the growth and economic reforms initiated under the Kingdom’s Vision 2030 programs according to a report from the National Labor Observatory.
The data reveals that average wage in the private sector surged from SR6,600 ($1,759) in 2018 to SR9,600 in 2023.
This growth is also attributed to the government support provided to the private sector during the COVID-19 pandemic, as well as the competitiveness and efficiency of the Saudi labor market.
According to the report, people receiving wages of over SR20,000 increased 139 percent over the last five years.
It rose from 84,700 people in 2018 to 202,700 in 2023 thanks to improved skills related to the labor market and the quality of jobs, efficient work environment, and high demand for specialized jobs.
The report also showed an increase in people receiving wages of over SR40,000 in the last five years by 172 percent.
It rose from 16,000 people in 2018 to 44,000 in 2023.
This surge is due to the increase in people’s leadership, the high demand for competencies in significant projects and the market need for specialized jobs.
According to NLO’s labor market benchmarking report released last November, the Kingdom ranked first in the labor force growth rate, outperforming the G20 countries between 2012 and 2021.
Reporting on this research, the Saudi Press Agency said the labor benchmarking study was based on the international indicators issued by the International Labor Organization and the central labor indicators for the Kingdom.
The study also included the annual growth of the labor force, their participation in the market, employment and unemployment rates.
Launched in 2019, the NLO and the Saudi Labor Market were established to boost Saudization and regulate the labor market.
Saudization, officially known as the Saudi nationalization scheme or Nitaqat, is considered a crucial step toward economic success.
The NLO provides a set of services and products specialized in the labor market based on comprehensive and accurate data that enables anticipating the future of the labor market, evaluating policies and measuring their impact.
