Time: November 22, 2018
- Saudi Arabia’s GDP is expected to grow to 3.6 percent in 2019, compared to 1.3 pecent in 2018
- Annual base salaries have witnessed a year-on-year growth on executive, managerial and professional levels
LONDON: Saudi salaries are expected to rise by 4.5 percent next year as the overall unemployment rates hits its lowest level in years, according to a report from Mercer.
The Total Remuneration Survey 2018 questioned 450 local and multinational organizations operating within the Saudi market.
Saudi Arabia’s GDP is expected to grow to 3.6 percent in 2019, compared to 1.3 pecent in 2018, Mercer said. This is expected to have positive results on creating additional jobs in the near future, slightly enhancing salaries for Saudi nationals and decreasing the overall national unemployment rate
Additionally, annual base salaries have witnessed a year-on-year growth on executive, managerial and professional levels and are expected to increase by an average of 5 percent in 2019, Mercer said.
However, blue-collar level salaries have declined by an average of 1 percent this year.
“The KSA market is currently thriving and is expected to continue to do so over the coming years,” said Abdulaziz Alajlan, Saudi career products leader at Mercer. “There have been major changes that are positively impacting the way corporations operate, such as strengthening female labor force participation. Sectors are continuing to evolve and progress as we move toward fulfilling the Saudi 2030 Vision, which is increasing employment opportunities for nationals and highly skilled expats.”
Mercer’s survey also revealed that the overall unemployment rate for Saudi women in KSA has decreased gradually due to a rise in female participation in the labor market in 2018.
Still, the overall unemployment rate in the Kingdom has risen in 2018, due in large part to young Saudi nationals entering the workforce, including both male and female nationals.
Mercer expects the overall unemployment rate to reach its lowest level in five years in 2019.