Slow Transitions Drain Billions from Saudi Economy
Saudi Arabia’s ambitious economic diversification efforts, designed to attract international businesses and foster a highly skilled workforce, are being undermined by inefficient transitions in career and learning. A recent report by Pearson reveals that these gaps are costing the Kingdom a staggering SAR 62 billion ($16.5 billion) annually in lost earnings for Saudi nationals alone. When factoring in expatriates, the losses balloon to SAR 196 billion ($52 billion), representing approximately 4.2% of the nation’s GDP. This economic leakage stems from deficiencies in education-to-work pathways, lengthy job transitions, and sluggish reskilling initiatives.
The High Cost of Inefficient “Learn-to-Earn” Pathways
Pearson’s study, titled “Lost in Transition: Fixing Saudi Arabia’s SAR 62 billion ‘learn-to-earn’ skills gap,” identifies friction points across three critical stages: initial entry into the labor market, career shifts within the workforce, and adaptation to rapid technological advancements. These inefficiencies hinder the seamless flow of talent and knowledge, ultimately impacting productivity and economic growth. For a nation where a significant 70% of the population is under the age of 35, addressing these transition challenges is not merely an economic imperative but a crucial factor in maintaining long-term competitiveness on the global stage.
In conclusion, the report underscores the urgent need for Saudi Arabia to streamline its education, training, and employment systems. By addressing the bottlenecks in career and learning transitions, the Kingdom can unlock significant economic potential, enhance workforce productivity, and secure its future competitiveness in a rapidly evolving global landscape. Failure to do so will continue to drain billions from the economy and impede progress towards its ambitious diversification goals.
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