Saudi Arabia’s labor market is expanding, with close to 74% of employers planning to recruit in 2026. However, this initiative is constrained by a gap in skills, as 93% of these firms report skill shortages across technology, financial, and construction roles.
Nearly 62% of companies increased headcount in 2025, driven by Vision 2030. The trend continues in 2026 with recruitments across technology, construction, banking, and business services. Roles linked to digital transformation and infrastructure are in high demand. Employers are seeking candidates with technical skills, data capabilities, and sector-specific experience.
Vacancies are available, but qualified candidates are scarce. Middle-level positions are difficult to fill as applicants lack expertise. Longer recruitment periods and stiff competition characterize the labor market.
Pressure on wages is evident, with 69% of individuals receiving wage hikes last year. Nevertheless, 56% of employees consider that their remuneration is lower than market rates.
Salary transparency affects recruitment processes. Approximately 85% of individuals favor companies that offer salary bands. Career advancement, job security, and training opportunities are some of the factors that candidates consider when choosing jobs.
Technology use at work is on the rise. 58% of workers employ artificial intelligence in their jobs, and only 19% of companies offer artificial intelligence training.
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Nearly 75% of firms are expected to hire more Saudis in the future. Companies have started to emphasize the importance of building their future talent pool through entry-level hiring and training within their organizations.
Saudi Arabia has been creating many employment opportunities. The shortage of skills continues to be the main challenge. With about 74% of firms expecting to hire and 93% experiencing shortages, the mismatch may remain in the near future.