MUSCAT: Oman’s labour market is witnessing significant transformation as part of the country’s Vision 2040 implementation efforts.
According to the Oman Vision 2040 Implementation and Follow-up Unit’s annual report issued recently, more than 853,000 Omanis were employed across the public and private sectors in 2023, marking a 6.4 percent growth from the previous year.
Expatriates also accounted for 1.8 million workers, with a 7% increase. These figures highlight the impact of ongoing reforms and strategic initiatives aimed at boosting national workforce participation and aligning the labour market with the country’s long-term economic goals.
Key labour reforms and initiatives have positioned the country for continued success, making the labour market more attractive to national talent and addressing the evolving needs of the private sector. Central to these reforms was the issuance of the new Labour Law in accordance with Royal Decree No. 53/2023, aimed at improving worker conditions, enhancing productivity, and fostering long-term stability in the labour market.
Strategic employment initiatives in 2023
A major highlight of 2023 was the launch of the labour market needs survey in private sector establishments.
This project, designed to align workforce development with actual market requirements, plays a crucial role in ensuring Oman’s workforce is equipped to meet future job demands.
Furthermore, the issuance of 707,000 work permits and the registration of 634,000 work contracts for both Omanis and expatriates reflected the robust nature of the labour market.
The Ministry of Labour’s commitment to improving working conditions was evident through 1,281 inspection visits conducted to ensure compliance with Occupational Safety and Health Regulations.
A notable achievement in 2023 was the establishment of sectoral skills units for Fisheries, Engineering, and Information Technology.
These units serve as platforms where employers, industry leaders, and academia collaborate to develop workforce skills aligned with international standards.
The National Employment Policy project, which launched in 2023, further reinforces these goals by focusing on identifying labour market needs and bridging the gap between education outcomes and employment demands.
Among the Ministry of Labour’s future plans are four major programmes designed to improve labour market conditions and boost employment opportunities.
These programmes include the completion of the National Employment Policy Project, now 55% complete, the National Strategy for Professional Standards at 49%, the Labour Market Policies Development and Enhancement Project at 65%, and the Training Project coupled with Replacement, which aims to create 11,000 new training opportunities.
In 2023, the Ministry of Labour took decisive steps to implement several initiatives that have already had a positive impact on the employment system. Two notable initiatives focused on enhancing job opportunities in both the private and public sectors.
As a result, 13,242 job seekers were appointed in private sector establishments for the first time, while 29,668 individuals were re-appointed through job rotation initiatives. Furthermore, 17,910 job seekers secured positions within public sector establishments, demonstrating the government’s commitment to creating sustainable employment for Omanis across various industries.
Marsad platform: Enhancing data-driven employment planning
An integral part of Oman’s strategy for improving labour market indicators is the Marsad platform, which, while not reformed in 2023, continues to play a vital role in facilitating the employment of Omani youth in both public and private sectors.
The platform provides decision-makers with detailed labour market data, including information on job seekers and students in various educational institutions. This data enables more harmonious planning between educational outcomes and the labour market’s actual needs, bridging the gap between skills and job opportunities.
Marsad contains six dashboards designed to measure key indicators, including population census data, labor force metrics, active and inactive job seekers, and education and graduate statistics. This robust data infrastructure is essential for Oman’s ongoing efforts to align higher education and vocational training with market demands, further ensuring that the national workforce is prepared for future job opportunities.
Skills development and training
To further boost the national workforce’s capabilities, Oman placed significant emphasis on training programmes.
In 2023, 9,300 young Omani cadres underwent various training initiatives, helping them acquire the skills needed for emerging job opportunities. These training efforts, along with Oman’s focus on improving professional standards, aim to close the gap between education and employment, ensuring the workforce remains competitive both locally and internationally.
A significant initiative in this area includes an agreement between the Ministry of Labour and the Musleh platform, which trained 600 job seekers in various maintenance fields. Additionally, over 2,000 Omani men and women were trained as part of a programme to support entrepreneurs and promote self-employment.
The job security fund: A safety net for workers
Oman has also implemented the Job Security Fund, a key element in ensuring stability for Omani workers who face job loss due to circumstances beyond their control, such as arbitrary dismissal. By the end of 2023, the fund had benefited over 17,000 individuals, including 13,599 whose services were terminated and 3,400 whose contracts had expired, offering temporary financial relief while they sought alternative employment.
Legislative reforms driving stability and growth
The issuance of the new Labour Law represents a key milestone in the country’s labour market development. This comprehensive legal framework addresses the modern needs of the economy by enhancing productivity, improving operating conditions, and increasing job stability in both public and private sector establishments.
The law also aims to reduce disruptions in the labour market by preventing strikes and closures, ensuring businesses and workers can operate in a stable and predictable environment.
It further contributes to Omanisation efforts, promoting higher rates of Omani participation in technical, professional, and administrative roles across industries.
Future-oriented strategies
With Oman’s labour market growing rapidly, the Ministry of Labour continues to focus on long-term strategies that prioritise skills development, job creation, and regulatory improvements.
By fostering a balanced and competitive employment landscape, Oman is steadily moving toward achieving its Vision 2040 goals, where both Omani talent and expatriate contributions are essential to the nation’s prosperity.
In summary, 2023 was a year of substantial growth and reform for Oman’s labour market, with significant gains in employment numbers, critical legislative reforms, and a focus on skills development. As Oman continues to evolve, the government’s efforts to balance workforce development with economic competitiveness will ensure a brighter, more prosperous future for all.
