Saudi Arabia
13 February 2017
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العربية
On 25 December 2022, the Ministry of Human Resources and Social Development of the Kingdom of Saudi Arabia signed the second phase of its Programme of Cooperation with the ILO Regional Office for Arab States, aiming at promoting decent work and productive employment in the Kingdom, in line with its Vision 2030 and other national policy documents and strategies, including the Saudi Labour Market Strategy and the National Skills Strategy.
The Kingdom of Saudi Arabia has been exerting great efforts to support the creation of a modern economy and a labour market conducive to decent and productive job creation, including for nationals and women in particular.
A wide array of programmes, strategies, and plans have been developed to promote decent work for all. The Ministry of Human Resources and social Development has been in the driving seat, leading efforts for improved employment outcomes in KSA, including through the development and implementation of the Saudi Labour Market strategy.
The first phase of the ILO/KSA Programme of Cooperation has made significant breakthroughs, including in the areas of labour market inclusiveness and non-discrimination, social dialogue, child labour and labour market information.
The MHRSD’s commitment to further promote decent work is re-emphasized through this second phase of the Programme, which will run for another 36 months starting in November 2022.
In light of the COVID-19 pandemic and its continued impact on the labour market, this second phase comes at a critical juncture, offering policymakers and actors in the Saudi labour market the support needed not only to overcome the repercussions of this global pandemic, but also to build forward better and address long-standing challenges that need to be tackled in order to enhance resilience against future shocks and crises.
Throughout this 3-year Programme, the ILO will provide technical and capacity building support, primarily to the MHRSD, but also to other relevant stakeholders in KSA under the following pillars:
Labour market duality in KSA and the dichotomy between the private and the public sector in terms of wages and working conditions remain however key concerns for policymakers in the Kingdom. Employment and labour market outcomes among Saudi nationals have hitherto been far from satisfactory.
The diversity of the programmes and measures in place requires a review and assessment of their effectiveness and impact. There is a need to build expertise to effectively and regularly monitor and assess the actual impact of these various measures on the labour market to support decision-making based on the knowledge of what works, what does not work, and why this is the case.
The various efforts related to policy development, monitoring, and evaluation, require strong labour market information and statistics and the development of a strong Labour Market Information System (LMIS). The ILO has been providing support to MHRSD in the deployment of the LMIS; nevertheless, for its long-term success, further technical support and improved capacities for regular collection, analysis and dissemination of data on both the supply and demand sides of the labour market are required.
To advance decent employment creation and support nationalization efforts in KSA, the ILO is undertaking a number of initiatives aimed at building the knowledge and capacities of policymakers and relevant stakeholders for the design and implementation of effective, evidence-based, and well-coordinated policies, as well as for their monitoring and evaluation.
1. Effective abolition of child labour
2. Elimination of discrimination in respect of employment and occupation
3. Elimination of all forms of forced or compulsory labour
4. Freedom of association and the effective recognition of the right to collective bargaining
5. A safe and healthy working environment
Activities under this pillar build on specific efforts and measures already taken by the Kingdom to enforce these principles, including specifically the development and adoption of the National Policy on Equality in Employment and Occupations, drafted with ILO’s technical support under phase 1; the adoption of the child labour policy, also developed within the framework of phase 1, and which calls for further assistance and support to eliminate and prevent child labour in the Kingdom; and finally, the Kingdom’s ratification in May 2021 of protocol No.29 of 2014 to the Forced Labour Convention, which reinforces its commitment to eradicate forced labour in all its forms.
The ILO’s approach builds upon the recent measures taken by the Ministry in the realm of child labour. Technical assistance and capacity-building activities are delivered in support of this area and the more general objective of promoting the application of international labour standards and conventions. Particularly, the ILO provides different forms of technical assistance and capacity-building to help KSA address problems in legislation and practice to bring them in line with the obligations under ratified instruments, while promoting ratification and application of a broader set of international labour standards and conventions.
While building the capacities of the government and social partners was the central objective of the first phase, including the creation of dedicated structures for Social Dialogue, in line with the assessment’s recommendations, the Social Dialogue assessment report has also highlighted the need to ratify ILO Conventions related to social dialogue.
Capitalizing on the renewed tripartite commitment to create the conditions that will allow KSA to establish sound and credible social dialogue actors and institutions will be key. Strengthening social dialogue is also critical for the empowerment of people, one of the three aims of the Saudi G20 presidency. “Promoting social dialogue for social cohesion with peace and democracy” was also specifically called for by the L20 Group in 2020, as a key measure to empower individuals and ensure their needs and concerns are properly voiced.
In view of the fragmentation of the skills system in KSA, the latter involving many actors, including different ministries and departments, technical and vocational training institutions, universities, and training organizations, amongst others, creating a strong and world of work responsive national skills governance and institutional framework becomes key to support an effective skills ecosystem conducive to increased productivity and improved employment outcomes.
The ILO works with the MHRSD, particularly with the Agency for Skills and Training, to support its efforts in relation to skills development and enhanced employability. This is done through a combination of technical assistance and capacity building activities, and with reference to international standards and best practices.
Over the past few years, the Kingdom, and the MHRSD in particular, have made concerted efforts to promote a safe and healthy working environment for all, including through the elaboration of an OSH profile and policy and the launch of the platform aimed at regulating occupational safety and health standards in the Kingdom.
The protection of workers against work-related sickness, disease and injury has become an integral part of governments’ labour market-related policies, not only in KSA but also worldwide, with the COVID-19 pandemic underlining the need to protect all workers and eradicate exploitation and unsafe working environments and practices.
The ILO, with its longstanding expertise in occupational safety and health, and in line with the various OSH-related International Labour Standards, is providing the needed technical and capacity building support required to ensure provision of maximum safety at work for all workers in KSA.
As the world moves towards a more challenging future of work, occupational safety and health remains a source of concern at the workplace globally. Occupational accidents and diseases and the lack of appropriate measures to prevent and address risks at work can have a detrimental impact on businesses and individuals, both in terms of human suffering and related economic costs.
That said, and in view of the increased efforts exerted by the Kingdom to promote a safe and healthy working environment, the ILO will work with the MHRSD on a number of activities and will provide technical and capacity building support targeting Government officials and social partners. This aims to support the implementation of the National Occupational Safety and Health Policy which was adopted by the Government in 2021.
Acknowledging the important role that cooperatives play, also in building back better, the Kingdom is in the process of drafting a National Cooperative Strategy to develop the sector. Moreover, efforts to revise the country’s Cooperative Law have recently been undertaken, with proposed amendments published in October 2021. ILO’s advisory support for the revision of the National Cooperative Strategy and the Executive Regulation of the soon-to-be amended Cooperative Law, to ensure their alignment with international labour standards, namely ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193), the national context and international good practices, was identified as critical, before the strategy and legislative instruments are put in place.
Further to the policy and legal aspects, the MHRSD also publishes statistics on cooperatives and has expressed its need to further develop the knowledge base and statistics on cooperatives, in line with the ILO’s Guidelines concerning Statistics on Cooperatives adopted at the International Conference of Labour Statisticians in 2018. Reliable and comparable statistics on cooperatives in KSA are critical to better quantify the impact of cooperative enterprises on individuals, society, and the economy and to support the development of evidence-based policies and programmes and ensure their effective monitoring and evaluation.
In view of the above, the Ministry of Human Resources and Social Development, through its Social Development Sector, is partnering with the ILO to support the development and strengthening of cooperative enterprises in the Kingdom.
The ILO will support the achievement of this outcome through the delivery of the below five main outputs:
• The National Cooperative Strategy and the Executive Regulation of the amended Cooperative Law are reviewed in line with international labour standards, the national context, and international good practices
• The role of the Apex organization for cooperatives is adequately defined and enhanced
• The capacities of MHRSD, primary and secondary cooperatives, and education institutions are enhanced
• A report on the state of national statistics concerning cooperatives in KSA and a roadmap towards improving them are produced and discussed with GASTAT
• Awareness is raised about innovative cooperative experiences from around the world.
The Kingdom of Saudi Arabia has been exerting great efforts to support the creation of a modern economy and a labour market conducive to decent and productive job creation, including for nationals and women in particular.
A wide array of programmes, strategies, and plans have been developed to promote decent work for all. The Ministry of Human Resources and social Development has been in the driving seat, leading efforts for improved employment outcomes in KSA, including through the development and implementation of the Saudi Labour Market strategy.
The first phase of the ILO/KSA Programme of Cooperation has made significant breakthroughs, including in the areas of labour market inclusiveness and non-discrimination, social dialogue, child labour and labour market information.
The MHRSD’s commitment to further promote decent work is re-emphasized through this second phase of the Programme, which will run for another 36 months starting in November 2022.
In light of the COVID-19 pandemic and its continued impact on the labour market, this second phase comes at a critical juncture, offering policymakers and actors in the Saudi labour market the support needed not only to overcome the repercussions of this global pandemic, but also to build forward better and address long-standing challenges that need to be tackled in order to enhance resilience against future shocks and crises.
Throughout this 3-year Programme, the ILO will provide technical and capacity building support, primarily to the MHRSD, but also to other relevant stakeholders in KSA under the following pillars:
Improved employment and labour market policies and outcomes
Over the past years, the MHRSD has introduced various initiatives and policy reforms to improve the employment situation in the Kingdom and address the complex and interlinked challenges of decent employment creation.Labour market duality in KSA and the dichotomy between the private and the public sector in terms of wages and working conditions remain however key concerns for policymakers in the Kingdom. Employment and labour market outcomes among Saudi nationals have hitherto been far from satisfactory.
The diversity of the programmes and measures in place requires a review and assessment of their effectiveness and impact. There is a need to build expertise to effectively and regularly monitor and assess the actual impact of these various measures on the labour market to support decision-making based on the knowledge of what works, what does not work, and why this is the case.
The various efforts related to policy development, monitoring, and evaluation, require strong labour market information and statistics and the development of a strong Labour Market Information System (LMIS). The ILO has been providing support to MHRSD in the deployment of the LMIS; nevertheless, for its long-term success, further technical support and improved capacities for regular collection, analysis and dissemination of data on both the supply and demand sides of the labour market are required.
To advance decent employment creation and support nationalization efforts in KSA, the ILO is undertaking a number of initiatives aimed at building the knowledge and capacities of policymakers and relevant stakeholders for the design and implementation of effective, evidence-based, and well-coordinated policies, as well as for their monitoring and evaluation.
Promotion of fundamental principles and rights at work
Fundamental principles and rights at work provide the foundation on which equitable and just societies are built. Without their realisation in law and practice, decent work cannot be achieved. Fundamental principles and rights at work are universal rights that should apply to all individuals in all countries around the world, regardless of the country’s level of economic development. The ILO’s five fundamental principles and rights at work are:1. Effective abolition of child labour
2. Elimination of discrimination in respect of employment and occupation
3. Elimination of all forms of forced or compulsory labour
4. Freedom of association and the effective recognition of the right to collective bargaining
5. A safe and healthy working environment
Activities under this pillar build on specific efforts and measures already taken by the Kingdom to enforce these principles, including specifically the development and adoption of the National Policy on Equality in Employment and Occupations, drafted with ILO’s technical support under phase 1; the adoption of the child labour policy, also developed within the framework of phase 1, and which calls for further assistance and support to eliminate and prevent child labour in the Kingdom; and finally, the Kingdom’s ratification in May 2021 of protocol No.29 of 2014 to the Forced Labour Convention, which reinforces its commitment to eradicate forced labour in all its forms.
The ILO’s approach builds upon the recent measures taken by the Ministry in the realm of child labour. Technical assistance and capacity-building activities are delivered in support of this area and the more general objective of promoting the application of international labour standards and conventions. Particularly, the ILO provides different forms of technical assistance and capacity-building to help KSA address problems in legislation and practice to bring them in line with the obligations under ratified instruments, while promoting ratification and application of a broader set of international labour standards and conventions.
Strengthened social dialogue institutions and enhanced capacities of tripartite stakeholders on tripartism and social dialogue in KSA
Within the framework of phase 1 of the ILO/KSA development cooperation programme, and under the Social Dialogue pillar, an ILO report assessed the status of social dialogue in KSA and provided recommendations for creating an enabling environment to promote social dialogue in the Kingdom.While building the capacities of the government and social partners was the central objective of the first phase, including the creation of dedicated structures for Social Dialogue, in line with the assessment’s recommendations, the Social Dialogue assessment report has also highlighted the need to ratify ILO Conventions related to social dialogue.
Capitalizing on the renewed tripartite commitment to create the conditions that will allow KSA to establish sound and credible social dialogue actors and institutions will be key. Strengthening social dialogue is also critical for the empowerment of people, one of the three aims of the Saudi G20 presidency. “Promoting social dialogue for social cohesion with peace and democracy” was also specifically called for by the L20 Group in 2020, as a key measure to empower individuals and ensure their needs and concerns are properly voiced.
Improved skills governance for better employability and employment outcomes in KSA
The high unemployment rate among Saudi nationals, and especially among youth, women, and persons with disabilities, is the result of a number of interlinked challenges, including a considerable mismatch between the skills that are in demand, and those supplied through the education and skills development systems. A rapidly changing world of work due to digitalization and other global drivers of change has further accentuated the skills mismatch. The consequences of skills mismatch reach all levels of the labour market, impacting workers and individuals, enterprises, and the country at large. A responsive and inclusive skills and lifelong learning system would enable individuals to acquire competencies for a decent job, support sustainable enterprise and contribute to economic growth. In this regard, the Saudi Labour Market Strategy identifies a list of reform initiatives needed to enhance and strengthen market responsive skills development systems to reduce skills mismatch in the Kingdom. The MHRSD is also increasingly emphasizing the role of skills development through the design of relevant strategies and reform efforts for improved employability results.In view of the fragmentation of the skills system in KSA, the latter involving many actors, including different ministries and departments, technical and vocational training institutions, universities, and training organizations, amongst others, creating a strong and world of work responsive national skills governance and institutional framework becomes key to support an effective skills ecosystem conducive to increased productivity and improved employment outcomes.
The ILO works with the MHRSD, particularly with the Agency for Skills and Training, to support its efforts in relation to skills development and enhanced employability. This is done through a combination of technical assistance and capacity building activities, and with reference to international standards and best practices.
Improved Occupational Safety and Health in line with relevant international labour standards
Ensuring safety and health at work continues to be a priority for policymakers in KSA. This is also in line with the Saudi Vision 2030 and its National Transformation Plan.Over the past few years, the Kingdom, and the MHRSD in particular, have made concerted efforts to promote a safe and healthy working environment for all, including through the elaboration of an OSH profile and policy and the launch of the platform aimed at regulating occupational safety and health standards in the Kingdom.
The protection of workers against work-related sickness, disease and injury has become an integral part of governments’ labour market-related policies, not only in KSA but also worldwide, with the COVID-19 pandemic underlining the need to protect all workers and eradicate exploitation and unsafe working environments and practices.
The ILO, with its longstanding expertise in occupational safety and health, and in line with the various OSH-related International Labour Standards, is providing the needed technical and capacity building support required to ensure provision of maximum safety at work for all workers in KSA.
As the world moves towards a more challenging future of work, occupational safety and health remains a source of concern at the workplace globally. Occupational accidents and diseases and the lack of appropriate measures to prevent and address risks at work can have a detrimental impact on businesses and individuals, both in terms of human suffering and related economic costs.
That said, and in view of the increased efforts exerted by the Kingdom to promote a safe and healthy working environment, the ILO will work with the MHRSD on a number of activities and will provide technical and capacity building support targeting Government officials and social partners. This aims to support the implementation of the National Occupational Safety and Health Policy which was adopted by the Government in 2021.
Cooperative sector strengthened and developed in KSA through policy development, technical and capacity building support
With a view to diversifying the Saudi economy and supporting decent job creation for Saudis, the MHRSD has committed to strengthening and promoting the role of cooperatives in KSA through its Social Development Sector.Acknowledging the important role that cooperatives play, also in building back better, the Kingdom is in the process of drafting a National Cooperative Strategy to develop the sector. Moreover, efforts to revise the country’s Cooperative Law have recently been undertaken, with proposed amendments published in October 2021. ILO’s advisory support for the revision of the National Cooperative Strategy and the Executive Regulation of the soon-to-be amended Cooperative Law, to ensure their alignment with international labour standards, namely ILO’s Promotion of Cooperatives Recommendation, 2002 (No. 193), the national context and international good practices, was identified as critical, before the strategy and legislative instruments are put in place.
Further to the policy and legal aspects, the MHRSD also publishes statistics on cooperatives and has expressed its need to further develop the knowledge base and statistics on cooperatives, in line with the ILO’s Guidelines concerning Statistics on Cooperatives adopted at the International Conference of Labour Statisticians in 2018. Reliable and comparable statistics on cooperatives in KSA are critical to better quantify the impact of cooperative enterprises on individuals, society, and the economy and to support the development of evidence-based policies and programmes and ensure their effective monitoring and evaluation.
In view of the above, the Ministry of Human Resources and Social Development, through its Social Development Sector, is partnering with the ILO to support the development and strengthening of cooperative enterprises in the Kingdom.
The ILO will support the achievement of this outcome through the delivery of the below five main outputs:
• The National Cooperative Strategy and the Executive Regulation of the amended Cooperative Law are reviewed in line with international labour standards, the national context, and international good practices
• The role of the Apex organization for cooperatives is adequately defined and enhanced
• The capacities of MHRSD, primary and secondary cooperatives, and education institutions are enhanced
• A report on the state of national statistics concerning cooperatives in KSA and a roadmap towards improving them are produced and discussed with GASTAT
• Awareness is raised about innovative cooperative experiences from around the world.