Oman’s Labour Market Sees Significant Improvement
Introduction to Oman’s Labour Market
Oman’s labour market has shown a significant improvement in 2024, thanks to the government’s continued reforms, strategic investments, and the expansion of non-hydrocarbon activities. The Central Bank of Oman’s Annual Report 2024 highlights the growth in employment among Omani nationals, which rose by 10.6%. This increase is a major step forward in efforts to strengthen national workforce participation and enhance job quality across the economy.
Factors Contributing to Labour Market Growth
The growth in employment among Omani nationals was driven by targeted policy measures aimed at improving labour mobility, expanding vocational and skills-development programmes, and aligning wages more closely with productivity. The government’s increased focus on preparing Omanis for future job markets, particularly in information technology, digitalisation, and other emerging sectors, has contributed to stronger workforce readiness. These efforts support the broader objectives of Oman Vision 2040, which prioritises a competitive, knowledge-based labour market led by national talent.
Shift in Employment Trends
While employment among Omanis increased, expatriate employment declined by 1.0%, continuing a structural shift in the labour market as localisation efforts gain traction. This decline reflects ongoing initiatives to correct workforce imbalances and channel new job opportunities towards Omanis, especially in sectors with rising demand.
Public Sector Employment
In the public sector, Omani employees accounted for 90.2% of the total workforce in 2024, up from 89.5% in the previous year. The number of Omani public-sector employees increased by 4.0%, alongside a 3.2% decrease in expatriate employment. The government continues to prioritise youth employment, skill-building, and readiness for emerging roles in digital and knowledge-based fields.
Private Sector Employment
The private sector also showed strong progress in supporting national employment. Omani employment in the private sector rose by 16.7%, lifting the share of nationals to 18.6%, compared with 18.3% in 2023. Meanwhile, expatriate employment declined by 0.9%. This shift reflects improvements in sector competitiveness, enhanced training initiatives, and structural reforms aimed at making private-sector careers more attractive and accessible to nationals.
Key Drivers of Job Creation
Major infrastructure, industrial, and logistics projects contributed to increased job creation for Omanis. Growth in manufacturing, services, and construction further supported employment gains, while overall economic stability, including low inflation and steady non-oil activity, provided a favourable environment for labour market improvements.
Conclusion
Overall, the employment trends of 2024 demonstrate meaningful progress toward building a more sustainable and inclusive labour market. With continued reforms and sectoral development, Oman is moving steadily toward realising Vision 2040 goals of higher national workforce participation and a more diversified economic base. The country’s efforts to improve labour market conditions and create more job opportunities for its citizens are expected to have a positive impact on its economy and society as a whole.
