Saudi Arabia's private sector achieved a notable milestone in August 2024, adding 37,009 new local employees, a 6.94 percent increase from July. This growth, as reported by the National Labor Observatory, underscores the country's efforts to diversify its workforce in line with the Vision 2030 plan, which aims to reduce oil dependency and boost national employment. The private sector now employs over 11.5 million workers, with Saudis comprising 2.37 million of the total, including a growing number of women.
This expansion reflects the success of strategic initiatives such as the Tawteen program, which promotes Saudization through incentives and training opportunities for local talent. The increase in female workforce participation, along with streamlined labor reforms, highlights the government's commitment to creating an inclusive and competitive labor market.
Expatriates, who make up the majority of the private sector workforce, continue to play a crucial role, particularly in specialized sectors. However, the rising number of first-time local hires demonstrates Saudi Arabia's emphasis on empowering its nationals, fostering a vibrant private sector that can absorb the increasing number of job seekers. These efforts are central to the broader economic transformation goals set by Vision 2030.