Saudi Arabia has demonstrated remarkable success in tackling labor market challenges, as well as promoting skill development and requalification, SPA reported referencing the a new report released by the Global Labor Market Conference (GLMC), organized by the Kingdom’s Ministry of Human Resources and Social Development late last year. This is in line with the ongoing initiatives aimed at fulfilling the goals of Saudi Vision 2030, which underscore the importance of cultivating national capabilities, enhancing workforce requalification, and lowering unemployment rates, thereby reinforcing the Kingdom’s status as a prominent entity adept at addressing both domestic and global issues.
Transformations in global labor markets
The first annual GLMC report report underscored the significant transformations currently occurring within global labor markets, including economic globalization, demographic changes, and swift technological progress. It stressed that ongoing education and skill enhancement are crucial for adapting to these shifts. Additionally, the report illustrated the Kingdom’s dedication to workforce development in accordance with Saudi Vision 2030, focusing on economic diversification, the creation of new job opportunities, and boosting the international competitiveness of the Saudi workforce.
Building a sustainable labor market
These initiatives play a vital role in establishing a sustainable and adaptable labor market that can keep up with rapid changes and promote long-term economic prosperity. The report particularly emphasized the need for comprehensive programs that assist young job seekers by improving education and training, developing relevant skills, and closing the gap between academic qualifications and market demands. This approach ensures that the youth are well-prepared to capitalize on future opportunities in the evolving global labor landscape.
Concerns about skill obsolescence
The annual report, which involved 14,000 participants from 14 countries worldwide, highlighted increasing concerns among over half of the respondents regarding the potential obsolescence of their skills in the near future. This data points to an urgent necessity for a significant portion of the workforce to enhance their skills to adapt to the swift changes in the labor market.
The impact of automation and demographics
The findings indicated that rising automation poses a challenge to labor markets in numerous countries. While this has heightened global awareness regarding the importance of skill development, the effects of demographic changes have been more pronounced in certain regions. Some participants noted that an aging population is a significant factor driving skill enhancement efforts, whereas the impact of demographic aging was less pronounced in motivating skill development initiatives in other nations.
Importance of essential skills
The report also highlighted the essential nature of cognitive, managerial, social, and emotional skills, alongside competencies in science, technology, engineering, and mathematics (STEM), for thriving in technology-driven labor markets. Furthermore, it emphasized that cognitive skills—such as critical thinking, problem-solving, and innovative reasoning—are paramount, both in the present and for the future.
Upcoming Global Labor Market Conference
The second annual GLMC is scheduled to take place in Riyadh on January 29-30, 2025. This event will bring together over 5,000 participants from around the globe, featuring more than 200 distinguished speakers, including labor ministers from 40 countries, chief executives, international experts, and public-sector leaders from over 50 nations, to explore key challenges and opportunities within the global labor market.
