RIYADH — Saudi Arabia emerged topper in the employment growth index, as well as in the labor market growth index among 67 countries around the world, according to the Global Competitiveness Yearbook 2024. The Saudi labor market continues to achieve record results with leading global indicators, after it topped the G20 in the labor force participation rate during 2016-2021, thanks to the acceleration of the market's performance rate. The Saudi National Labor Observatory revealed on Thursday the results achieved by Saudi Arabia in the 2024 Global Competitiveness Yearbook. The Saudi government is proceeding with several amendments and reforms in the labor market, in terms of systems and legislation, in order to be consistent with the country's strategy in this framework. This is also in line with the international agreements ratified by the Kingdom, the latest of which was the approval of the Council of Ministers to amend a number of articles in the Saudi Labor Law. This is aimed to support the market and the production and service sectors so as to create a more attractive work environment. According to the Global Competitiveness Yearbook 2024, Saudi Arabia ranked third in the Labor Market Effectiveness Legislation Index, and fourth in the Skilled Foreign Labor Index. The Kingdom achieved fifth place in the labor market field, sixth in the working hour index, while Saudi Arabia's ranking in the employee training index reached 10th. The latest report issued by the National Labor Observatory showed that the Kingdom has witnessed successive stages of progress in labor market indicators within the World Competitiveness Yearbook, as it was ranked 24th in 2022, reaching 17th in 2023, then 16th during the current year out of 67 countries that were covered in the yearbook. Last Tuesday, the Saudi Council of Ministers approved amending a number of articles of the Labor Law, in a step that improves the local market, enhances job stability, preserves the rights of parties to the contractual relationship, in addition to developing human cadres, enhancing training opportunities for workers, and increasing job opportunities for citizens. Minister of Human Resources and Social Development Eng. Ahmed Al-Rajhi said that the Cabinet decision came as an extension of the unlimited support the system receives from the government. He stressed that the amendments come within the ministry's ongoing efforts to review labor market systems and regulations in accordance with the best global practices in line with the successive changes and developments witnessed by markets around the world. The amendments came after fruitful efforts and integration with relevant authorities, labor committees, the Federation of Saudi Chambers, and human resources experts in a number of major and leading private sector companies. The amendments would contribute to raise the efficiency and effectiveness of the market to keep pace with the needs and aspirations of employers and workers in the private sector, and empower national cadres to support the achievement of the goals of the labor market strategy and the development of the national economy. The Ministry of Human Resources and Social Development indicated that the new amendments were made after an extensive study based on standard comparisons with labor laws in several countries, and a study of the best international practices, with the involvement of more than 1,300 participants who contributed to adding their opinions and suggestions to the proposed amendments to the Labor Law articles. This is through Istitlaa survey platform, in addition to sharing opinions and advice with private sector establishments, relevant government agencies, labor committees, and a number of specialists and experts through workshops and consultative meetings. The new amendments included 38 articles, in addition to deletion of 7 articles, and addition of two new articles to the Labor Law. It is noteworthy that the number of citizens joining the private sector for the first time in Saudi Arabia during last month witnessed an increase to exceed 34600 citizens, compared to 16500 in June, more than doubling in just one month. The total number of workers in the private sector reached 11.473 million during July, compared to 11.409 million workers in the previous month of June, while the number of citizens exceeded 2.342 million, compared to 2.340 million in the previous month
