Saudi Labor Market Set for Expansion in 2023

Employers Anticipate Headcount and Salary Growth

In the Kingdom of Saudi Arabia, the labor market is experiencing a surge of activity, with a significant majority of employers set to bolster their teams. A recently released report indicates that a substantial 69% of companies in the region are preparing to expand their workforce during the current year.

The findings, disclosed by a prominent recruitment agency in its annual salary guide for Saudi Arabia, also suggest that professionals can expect salary increments. Mark Paul, a managerial figure at the agency’s local branch, expressed optimism about the burgeoning labor market. He attributed this to the robust economic climate and ambitious governmental drives, such as Saudi Vision 2030, which aims to diversify the economy and scale various sectors.

Paul highlighted that the eagerness of employers to increase their workforce, paired with 29% of professionals actively looking for new opportunities, creates a dynamic job market.

Salary increases of 5%

It’s anticipated that the compensation for professionals in Saudi Arabia will be adjusted upwards, with 77% of employers predicting salary hikes within their organizations. The most common forecasted increase is up to 5%, signifying a positive stance by employers willing to invest in their talent pool.

Sectors that are hiring

Particularly dynamic sectors such as banking, finance, construction, and property are witnessing significant headcount growth. The ongoing mega- and giga-projects related to infrastructure, tourism, and urban development are fueling this surge. As these projects progress, and with new ones on the horizon, recruitment activities are intensifying to attract the skilled professionals needed to achieve organizational goals.

Additionally, the industrial and sales sectors are thriving, with technology startups and domestic companies contributing to the increased demand for skilled labor.

Monthly salaries for 2024

Shallow skills pool

Despite the optimistic forecasts, a scarcity of skilled professionals poses a challenge, with half of the employers citing a need for more qualified talent in the marketplace. In response, companies are broadening their search internationally and are making concerted efforts to enhance their employer branding.

The Saudi Arabia Salary Guide, which surveyed over 400 employers and professionals, serves as a testament to the current and future state of the labor market in the region.

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