Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights significant improvements in Saudi Arabia's labor market over the past decade, driven by Vision 2030 and the National Labor Market Strategy (LMS), which have catalyzed private sector job creation and increased labor force participation, particularly among women and youth [6][24][25] - Key reforms have modernized labor market institutions, enhanced inclusion, and positioned the private sector as a primary driver of job creation [6][24][25] Summary by Sections Executive Summary - Saudi Arabia's Vision 2030 and LMS have improved labor market outcomes, shifting the economy beyond oil and increasing private sector job creation [24] - The report benchmarks 2025 outcomes against a 2015 pre-Vision 2030 baseline, showcasing key reforms and achievements [24] Key Achievements - Labor force participation has significantly increased, especially for women, with a notable reduction in unemployment rates [25] - The private sector has become more dynamic, with a younger, more educated workforce and a shift towards private employment, particularly among women [25][27] - Changing social norms have improved perceptions of private sector work, leading to increased job-seeking behavior among unemployed individuals [27] Vision 2030 and LMS - Vision 2030 aims to diversify the economy and improve living standards through labor market reforms [39] - The LMS focuses on modernizing governance, increasing employment creation, and improving skills and job quality in the private sector [39][40] - The LMS includes 27 initiatives, with 19 implemented, and has exceeded many key performance indicators [41][51] Labor Market Activation - The working-age population is increasingly educated, with a rise in tertiary education among both Saudis and expatriates [65] - Employment opportunities have expanded, particularly for vulnerable groups, leading to a decrease in youth not in employment, education, or training (NEET) [68] - The transition from inactivity to employment has improved, especially for women and youth, indicating a more inclusive labor market [68]