Oman’s Labour Market Reforms: A Path to Sustainable Employment Growth

Oman’s extensive efforts to improve its labour market have come to fruition. In 2023, around 854,000 Omanis found employment in the public and private sectors, representing a 6.4% increase from the previous year, driven by the vision and effectiveness of His Majesty and the government.

The Oman Vision 2040 Implementation and Follow-up Unit’s annual report highlights that 86,540 job opportunities were created for citizens in both sectors between January 2021 and December 2022.

The country adopts a balanced labour market policy, integrating expatriate workers alongside Omani nationals. In 2023, there were 1.8 million expatriate workers, a 7% increase.

These labour market reforms and strategic initiatives aim to enhance participation of the national workforce and align the labour market with long-term economic objectives, positioning Oman for ongoing success while addressing the evolving needs of the private sector.

Key reforms have been enacted through the new Labour Law under Royal Decree No. 54/2023, which seeks to improve worker conditions, enhance productivity, and ensure long-term stability in the labour market.

Notable Strategic Labour Initiatives

A pivotal initiative is the labour market needs survey targeting private sector establishments. This aims to align workforce development with real market demands to meet future job needs effectively.

The vibrant labour market is further demonstrated by the issuance of 707,000 work permits and the registration of 634,000 work contracts for both Omanis and expatriates, with ongoing efforts to match candidates with suitable skills to the right jobs.

Enhancing Working Conditions

The Ministry of Labour is dedicated to improving working conditions, health, safety, and environmental standards for workers, conducting 1,281 inspections to ensure compliance with Occupational Safety and Health Regulations.

To align Oman’s labour force with international standards, the ministry has established sector-specific skills units in Fisheries, Engineering, and Information Technology. These platforms facilitate collabouration between employers, industry experts, and educational institutions to develop workforce skills that meet global benchmarks.

The Ministry has launched four major initiatives to enhance labour market conditions and elevate employment opportunities to international standards. These include:

The National Employment Policy Project, now 55% complete.

The National Strategy for Professional Standards, which is 49% complete.

The Labour Market Policies Development and Enhancement Project, nearing 65% completion.

The Training Project, which aims to create 11,000 new training opportunities for the national workforce.

The 2023 National Employment Policy project reinforces national employment objectives by identifying labour market needs and bridging the gap between education and employment demands.

As a result, 13,242 job seekers were placed in private sector roles for the first time, while 29,668 individuals were re-appointed through job rotation initiatives. Additionally, 17,910 job seekers gained positions in the public sector, reflecting the government’s commitment to generating sustainable employment for Omanis across various industries.

The Marsad Platform

In a continuous effort to improve labour market indicators, the Ministry’s Marsad platform facilitates the employment of local talent in both public and private sectors.

This platform provides decision-makers with comprehensive labour market data, including information on recent graduates and potential employees from various educational institutions, aiding in understanding labour market needs and necessary skill sets. It supports bridging the gap between skills and job opportunities.

This robust data ecosystem is essential for aligning higher education and vocational training with market realities, ensuring that the Omani workforce is equipped to meet future job demands.

Lastly, in support of working mothers, maternity leave and unpaid childcare leave have been increased from 58 days to 98 days, with an additional ‘unpaid childcare leave’ option for up to one year available for new mothers who need to care for their children.