Saudi Arabia continues corrective measures, labor market strategy to improve supply, demand: official

Logo of Ministry of Human Resources and Social Development

The corrective measures and improvements in the Saudi labor market are ongoing, with the strategy focusing on developing supply and demand as well as skills and efficiency, CNBC Arabiya reported, citing Sattam Alharbi, deputy minister for inspection and development of work environment at the Ministry of Human Resources and Social Development (HRSD).

Alhrabi said that this is the first comprehensive strategy to be approved for the labor market and not only for HRSD.

The strategy includes more than 25 initiatives, based on seven different pillars, to enable Saudis to access the labor market and participate in the development of economy.

The ministry is working to boost the standards of compliance with the work law and ministerial decisions through several initiatives, Alharbi said.

He explained that the percentage of commitment to the ministerial decisions and the work law exceeded 92%, as a result of several efforts, most important of which is the self-evaluation project that enables each establishment to self-assess, raising awareness internally.

The ministry's coverage of the wage protection program hit 100% for all establishments operating in the labor market, which indicates that all establishments are committed to the program, especially as the ministry has offered the necessary tools to pay wages on a regular basis.

The contractual relationship improvement initiative allowed employees to transfer from one employer to another, boosting competitiveness for professional workers, Alharbi added.

According to data compiled by Argaam, the Saudi Cabinet approved the labor market strategy in December 2020.

Ahmed Al-Rajhi, HRSD Minister, said the Cabinet’s approval of the labor market strategy will contribute to its development and boost efficiency.