Saudi Labor Force: Challenges and Ambitions
Notably, Saudi Arabia has considerably changed its economic structure from nomadism to oil-based. Currently, the country is undergoing significant economic transformations, which are intended to address issues like overreliance on the oil sector and labor challenges. A fundamental problem facing Saudi Arabia is the low labor participation by its citizens. At the initial stages of oil discovery, the working population was largely composed of Saudi nationals. However, in the 1970s, reliance on foreign laborers surpassed that of locals (Al-Asmari, 2008). At the time, foreign labor was mainly from regional Arab countries, but later changed to incorporate workers from across the globe. The high number of expatriate workers is attributed to the expansion of the private sector, the small Saudi population, restriction of women, and the high number of young people.
The percentage of women in the Saudi workforce is significantly low, in comparison with the rest of the world. Although Saudi Arabia experiences an increasing demand for labor, the country’s economic system has continuously restricted women’s participation. While males account for 54.4 percent of the working population, females only comprise of 5.3 percent (Al-Asmari, 2008). As such, the improvement of women’s representation in the labor force has been integrated as a key component of the current economic strategies.
Undeniably, the Saudi Arabian government recognizes these as vital challenges. Therefore, approaches that will aid in the development of the Saudi workforce have been designed. The country has demonstrated commitment by turning its focus on the improvement of higher and secondary technical education. This is primarily aimed at preparing people to undertake required activities in the commercial, industrial, and agricultural fields. Further, the country intends to address labor issues through Saudization. This reform entails the nationalization of commercial industries and the increasing employment of the indigenous population (Al-Asmari, 2008). Certainly, these techniques will improve the involvement of locals and women in the labor force.