Saudi Arabia is reshaping its labour market – and getting results

How can the global labor market keep up with rapidly changing technology, industries that are transforming overnight, and changing employee expectations?

These are not future concerns - they are challenges we face today.

Around the world, employers in nearly every sector cannot fill roles due to skills mismatches - yet millions of workers of all ages struggle to find meaningful opportunities. Meanwhile, traditional industries are being disrupted by technological innovation and climate adaptation. These shifts are reshaping the global labor market profoundly, with implications for every government, business and citizen.

As Minister for Human Resources and Social Development in Saudi Arabia, I am committed to being at the forefront of addressing these challenges at home while working with our partners in the region and beyond.

Global challenges necessitate international collaboration. To that end, it was a privilege to convene the second edition of the Global Labor Market Conference (GLMC) in Riyadh last week, as part of the Kingdom’s transformational Vision 2030 strategy, providing an unprecedented platform for driving positive change in the labor market.

By bringing together leaders, policymakers and innovators from more than 150 countries, the conference served as a powerful vehicle for tackling pressing labor sector challenges.

We are witnessing dynamic models emerging that are transforming labor markets. In Germany, a dual vocational training system combines classroom education with hands-on apprenticeship training.

Singapore’s SkillsFuture program provides citizens with credits to pursue education and skills development throughout their careers. Meanwhile, Kenya’s Ajira Digital Program empowers young people to access digital skills training and freelance opportunities.

Saudi Arabia's labor market has undergone a remarkable transformation under Vision 2030. Since 2020, more than 2.2 million Saudis have entered the private sector workforce, driven by initiatives like Nitaqat and extensive national skilling programs.

More Saudi women in the workplace

A key factor in this shift has been the significant rise in female workforce participation, which exceeded 36% last year. This progress has been fueled by targeted initiatives, including comprehensive training programs and the development of supportive infrastructure – such as accessible childcare and tailored transportation options – designed to empower women in the workplace.

As we continue to build a labor market that serves all who live and work in the Kingdom, we are acutely focused on eradicating abuse and exploitation in all its forms. A wide range of initiatives have been implemented to safeguard the rights of employees, including the introduction of the comprehensive Wage Protection System (WPS) to ensure fair and transparent payment practices are employed across the Kingdom.

The Kingdom also introduced a new National Policy for the Elimination of Forced Labor – becoming the first Arab country to introduce a comprehensive National Policy and reaffirming our dedication to aligning with international standards to eliminate forced labor.

With innovative policy developments being implemented and delivering results, the GLMC served as an open and ambitious space to share best practices and enable mutually beneficial collaboration to build adaptable, inclusive, and future-ready labor markets.

While being a forum for dialogue, the Global Labor Market Conference was also a platform for tangible action. This year, I was honored to set out two initiatives that will help redefine global labor markets.

• First, the launch the Global Labor Market Academy - in partnership with the World Bank  – which will equip policymakers worldwide with the tools to address pressing labor market challenges. With Riyadh as its permanent hub, the Academy will focus on strategies for inclusive employment, youth skilling and integrating social protection with labor policy, particularly for middle and low-income countries that need it most.

• Secondly, the introduction of the ‘Navigating Tomorrow’ report – a comprehensive study offering actionable recommendations to address workforce challenges and enhance global economic resilience.

These initiatives will make a significant contribution, but – in an interconnected global labor market – long-term success requires sustained global collaboration, innovation, and action. Through Vision 2030 and platforms like the GLMC, Saudi Arabia is committed to addressing today’s challenges while preparing for the future.

We can transform challenges into opportunities by empowering workers, fostering economic resilience, and driving global cooperation.

The road ahead is not without obstacles, but together, we can build labor markets that empower individuals, strengthen economies, and support thriving societies around the world.