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  • Ahmed Saleh

Q2 2023 saw a notable rise in Saudi labor market participation

Riyadh, October 02, 2023, As per the latest findings from the National Labor Observatory (NLO), the second quarter of 2023 has witnessed a remarkable surge in Saudi citizens' participation in the labor market. Notably, the number of Saudi nationals employed within private sector establishments soared to 2.2 million, marking a significant uptick compared to previous annual quarters. This figure represents an impressive addition of 210,000 Saudi employees compared to the corresponding quarter in 2022, reflecting an average quarterly growth rate of approximately 42,000 workers up to the second quarter of 2023.

This surge in Saudi citizens joining the private sector workforce can be attributed to the robust growth rates of the Saudi economy. These economic advancements have not only expanded the overall labor market but also generated heightened demand for employment opportunities while enhancing productivity rates.

The NLO has recently released its Q2 2023 localization report, providing a comprehensive review of labor market shifts and job localization rates within private sector enterprises. The report meticulously analyzes localization rates across various economic activities and administrative regions, offering valuable insights into the performance of these rates. It also compares localization rates in Q2 2023 with the previous quarter and the same period in 2022, shedding light on the net growth of jobs for Saudi citizens.

The report underscores that this growth in Saudi employment applies to both genders, with male employees in the private sector numbering 1.3 million in the second quarter of 2023, while female employees reached 900,000. This combined to achieve an overall localization rate of 22.3%.

Furthermore, regional analysis reveals that the Eastern Region recorded the highest localization rate in the second quarter of 2023 at 27%, followed closely by Makkah at 24%, and Riyadh and Madinah at 21%. The information and communications sector notably boasted the highest participation rate among male citizens at 60%, while the education sector led in female citizen participation, registering an impressive 53%.

Established in 2010, the NLO serves as the primary and trustworthy source of labor market data in Saudi Arabia. It periodically issues reports throughout the year, offering in-depth analysis of key indicators and data crucial for strategic decision-making and policy formulation. These reports are grounded in factual and numerical evidence, providing insights into the dynamics of the labor market and assessing the impact of policies to anticipate its future trends.

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