Report on Saudi Arabia Labour Market

Question: Write a report on Saudi Arabia Labour Market


Saudi Arabia has one of the most diversified labor markets across the world. The country now is focusing on transforming itself as a non-oil economy and during this transformation; the labor market is encountering a number of challenges including the lack of employment opportunities, wages and high dependence on the foreign labors (Harvard Business Review, 2018). However, the labor market of a country is closely related to the national economy. The current research proposal includes analysis on the challenges in Saudi Arabia labor market. The research proposal also includes discussion on the financial aspects associated with the labor market.
Empirical model:
Saudi Arabia is trying to reduce its dependence on the oil-based economy and the country is now in the midst of a major transformation. To cope with the economical transformation, the labor market of Saudi Arabia also needs to be changed (Rahman, 2017). However, there are a number of issues which are posing challenge to the national labor market. The issues in Saudi Labor market are as follow:
Lack of trained labor in domestic market: Although Saudi Arabia invests on its education system, there is a lack of qualified employees in the labor market (Al-bakr et al.2017; Jadwa Investment., 2018). It, in turn increased the dependence on foreign labors and the associated cost.Recruitment in the private organizations: Most of the Saudi nationals work in p public sector. Therefore, the growing private sector organizations of this country need focusing on recruitment drives to attract talent.Gender inequality: Many Saudi Women are highly qualified, but their participation in the workplace is still low (Naseem & Dhruva, 2017). It is affecting the national economy as a large portion of the qualified professionals is not working.High rate of unemployment: A major part of the national youth population of Saudi Arabia qualifies for white collar jobs. However, despite the growth of private sector in the country, a huge number of youth is unemployed (Ministry of labor and social development, 2016; General Authority for Statistics, 2018) However, currently the industries such as the hospitality and construction are mainly dependent on the foreign labors. The local youth can be trained for getting employed in these industries. 
Tight government budget: 
The lower oil price for past few years created a tough condition for the economy of Saudi Arabia. As an impact, the government compelled to make stricter budget and it increased the need of reviewing the pay packages.
Empirical Result:
For getting rid of the challenges faced by the labor market, steps such as development of other industries , reducing the pay packages at public organizations to a small extent, eliminating gender issues and promoting on quality education can be effective (Elmulthum & Elsayed, 2017). The Saudi government can focus on the development of construction, delivery and manufacturing industry for creation of employment opportunities. Investing on the quality education can also meet the need of qualified labors in the domestic market.
Objective of the thesis:
Objectives of the research are as follow:
•To assess the nature of labor market in Saudi Arabia
•To identify the issues labor market in Saudi Arabia is encountering due to economical transformation
•To suggest possible ways to mitigate the issues in labor market of Saudi Arabia
How the thesis will help in attaining the master’s degree in finance: Having knowledge on national economy and all other aspects associated with it is necessary for p-pursuing the finance degree. This thesis will help the researcher to understand the relationship between the national economy of Saudi Arabia and the labor market of this country.How the thesis benefits larger audience: The thesis will find out possible ways to mitigate the challenges for Saudi Arabia labor market. So, the findings can serve broader purpose.


The current proposal indicates that the issues in the labor market of Saudi Arabia can be mitigated by reviewing the packages and promoting quality education. The local youth require being trained as per the need of new job opportunities in Saudi Arabia. Training the domestic labors according to the industry requirements can help the country to reduce its dependence on the foreign labors. The objectives of the thesis made in this proposal indicates that the thesis can serve the broader purpose by providing the possible ways to mitigate the challenges related to the labor market in Saudi Arabia. However, the thesis will also help the researcher to get a deeper understanding on the relation between Saudi economy and its labor market.


Al-bakr, F., Bruce, E. R., Davidson, P. M., Schlaffer, E., & Kropiunigg, U. (2017). Empowered but not equal: Challenging the traditional gender roles as seen by university students in Saudi Arabia. In FIRE: Forum for International Research in Education (Vol. 4, No. 1, p. 3).
Elmulthum, N., & Elsayed, I. (2017). Prospects of Saudi Women’s Contribution to Job Market under Saudi Vision 2030: An Empirical Analysis 1999-2015. International Journal of Applied Sociology, 7(1), 20-27.
General Authority for Statistics. (2018). Unemployment rate. General Authority for Statistics. Retrieved 18 February 2018, from
Harvard Business Review. (2018). Saudi Arabia’s Labor Market Challenge. Harvard Business Review. Retrieved 17 February 2018, from
Jadwa Investment. (2018). Labor market reports - Jadwa Investment. Retrieved 18 February 2018, from
Ministry of labor and social development (2016). Saudi Arabia Labor Market Report 2016.Labor Market Report,3,
Naseem, S., & Dhruva, K. (2017). Issues and Challenges of Saudi Female Labor Force and the Role of Vision 2030. International Journal of Economics and Financial Issues, 7(4).
Rahman, M. M. (2017). Beyond labour migration: The making of migrant enterprises in Saudi Arabia. International Sociology, 0268580917745770.\ 


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