RIYADH: Saudi Arabia achieved the highest growth rates in both male and female workforce participation among all G20 countries between 2016 and 2021, according to data from the Kingdom’s National Labor Observatory.
The statistics reveal a 1.7 percent growth rate for male workers in Saudi Arabia, surpassing Australia’s 1.5 percent and exceeding the rates of other G20 nations. Female workforce growth was even more notable, with a rate of 5.5 percent in Saudi Arabia compared to 2.1 percent in Australia and lower figures in the rest of the G20.
This impressive growth is attributed to the Kingdom’s dynamic labor market, driven by economic expansion, a youthful population, and initiatives aimed at boosting female participation in the workforce. These developments align with Saudi Vision 2030, which focuses on attracting and retaining top talent, including both Saudis and expatriates, and investing in the productive capabilities of women to enhance their role in the Saudi economy and society.
The National Labor Observatory also reported that Saudi Arabia saw the highest increase in labor participation rate among G20 countries, rising by 6.2 percent. Japan followed with a significantly smaller increase of 2.2 percent. Additionally, Saudi Arabia ranks second in male labor force participation rates, just behind Indonesia, with a participation rate of 70 percent for those over 25 years old, compared to Indonesia’s 72 percent.
In 2017, Saudi Arabia experienced a decline in labor force participation among the youth (ages 15 to 24), attributed to social factors such as family dependency and subjective factors including inadequate training and completion of education. However, Saudi Arabia remains among the top 10 G20 countries in terms of overall employment rate, reaching about 57 percent.
The Kingdom also recorded a high male participation rate of 76 percent and achieved a 10 percent increase in the female employment rate from 2016 to 2021. Contributing factors to these positive trends include support for job growth and nationalization in various sectors, alignment of educational outcomes with market needs, and sector-specific strategies to develop human capital. Additionally, policies and programs like income support, social protection, and initiatives promoting modern work platforms and future-oriented skills development have played crucial roles.
In 2023, Saudi Arabia reached its lowest unemployment rate of 7.7 percent, a significant drop from 12.3 percent in 2016. This rate exceeded the 2023 target of 8 percent and is nearing the Vision 2030 goal of 7 percent, reflecting the effectiveness of the Kingdom’s labor market reforms and economic strategies.
In July, Saudi Arabia played an active role in the G20 meetings held during Brazil’s presidency, particularly within the Women’s Empowerment Working Group. The three-day session, hosted in Brasilia, marked the third convening of this working group. Leading the Kingdom’s delegation was Maimunah bint Khalil Al-Khalil, secretary-general of the Family Affairs Council.
The initial two days of the meetings were dedicated to discussions among member states regarding the ministerial declaration. These discussions focused on refining the group’s priorities and consolidating agreements made in previous sessions. The aim was to produce a comprehensive declaration that reflects the collective commitments and objectives of the working group.
The timing of the G20 meetings coincided with positive economic reports about Saudi Arabia. In June, the International Monetary Fund highlighted the Kingdom’s “unprecedented economic transformation,” attributing this progress to sound government policies and effective diversification strategies. The IMF noted Saudi Arabia's growing domestic demand, ongoing financial reforms, and environmental policies as key areas of strength.
These positive assessments followed closely on the heels of figures released by the Organisation for Economic Co-operation and Development, which revealed that Saudi Arabia’s economy had grown at a pace surpassing the G20 average during the first quarter of the year. This growth underscores the Kingdom’s successful efforts to navigate and capitalize on its evolving economic landscape.
