It is necessary to consider solutions to restructure the Saudi labor market 
The third session of the Global Labor Market Conference will be held in Riyadh between Jan. 26-27, organized by Saudi Arabia’s Ministry of Human Resources and Social Development.
A total of 47 labor ministers are expected to attend to discuss solutions and policies related to the international labor market.
The forum will address the impact of technological transformation and artificial intelligence on the workforce, the new job skills required and the extent to which labor markets are keeping pace with developments.
Speakers at the conference will address market challenges and share their best economic experiences, along with academic discussions on topics of global priority.
The conference will be addressed by 200 speakers, and more than 7,000 people will participate in its 50 sessions and events.
It is being held in partnership with the International Labor Organization, the World Bank, the United Nations Development Program and the Organization for Economic Co-operation and Development, giving it an international dimension that enhances the value of its discussions and the weight and feasibility of its recommendations.
Its first session was held in 2023, and the event serves as an international platform for dialogue, cooperation and the creation of effective approaches that can withstand future labor market changes.
In its annual jobs report for 2025, the World Economic Forum predicted that 170 million new jobs would be added to the global labor market by 2030, equivalent to 14 per cent of current total jobs.
It explained that technological development and green transformation, along with economic and demographic changes, would be key factors in restructuring the labor market.
The forum surveyed more than 21 institutions and companies worldwide, operating in 21 sectors and employing about 15 million people, to identify the fastest growing or declining jobs and the skills required in the coming period.
A total of 86 per cent of participants expected that artificial intelligence technologies, data processing and related jobs would bring about a huge shift in the priorities of global labor markets, changing 39 per cent of the skills currently in demand in the market.
Professions related to the agricultural sector would become more important, in relation to emissions and climate change, along with social care, health and counselling jobs, as a result of demographic shifts in many countries and ageing populations, jobs such as cashiers, secretaries, accountants, security guards and customer service representatives would disappear.
Cleaning and housekeeping jobs would not be present, and skills would focus on dealing with technology, creative and analytical thinking, and concern for the environment.
From the above, we have a logical and accurate prediction of what the future will look like.
In addition, the average monthly gross salary index, compiled by the American magazine CEO World, revealed that Switzerland ranks first with average salaries for 2025 reaching $8,800.
Luxembourg ranked second, with $6,740, and Iceland third, with $6,548.
In contrast, the Saudi Statistics Authority indicated that the average salary for Saudis for the same year is estimated at SR10,119, or $2,698; this puts it in fourth place in the Arab world, ahead of 18 countries.
The leading Arab and European countries have populations that do not exceed the number of Saudis in the city of Riyadh alone. Despite that, their salaries should be higher, were it not for the desire to bring in cheap labor.
Evidence of this can be seen in the job figures for the local labor market for 2024, which reached 14 million jobs, with Saudis accounting for four million of these and the rest going to foreigners, according to an Al Saudiya News interview with human resources expert Ahmad Al-Qahtani.
The researcher does not imagine that they are all distinguished or exceptionally experienced, because 15 per cent of them work in retail outlets, which could be completely eliminated in a single day, and 120,000 workers are employed at 12,000 petrol stations, which could be automated in the manner of American stations, so that they can be supervised by Saudis working in the station’s grocery stores.
This decision needs to be enforced without exception, or linked to benefits such as exemption from certain fees.
The resulting scarcity factor will raise the wages of Saudis.
According to estimates by the Local Content Authority, non-Saudis’ contribution to the local economy through their salaries does not exceed 37 per cent, which means that 63 per cent of their income is transferred outside the Kingdom.
This is not the case for Saudis, who spend their money within the country. There is no dispute that the unemployment rate has reached the Vision’s target of 7 per cent.
However, 50 per cent of the total jobs held by Saudis in the labor market, or as Crown Prince Mohammed bin Salman said in a television interview in 2021, are considered poor jobs that do not achieve the well-being of citizens and whose salaries are less than SR7,000, or about $2,625.
It is necessary to consider solutions to restructure the Saudi labor market, the first of which is to set a low ceiling for recruitment rates, especially in jobs that can be nationalized, before reducing the number of unemployed further, because the former will address the problems of the latter and provide high-quality jobs.
• Dr. Bader bin Saud is a columnist for Al-Riyadh newspaper, a media and knowledge management researcher, an expert and university professor in crowd management and strategic planning, and the former deputy commander of the Special Forces for Hajj and Umrah in Saudi Arabia.
X: @BaderbinSaud.
