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WEEKLY NEWSLETTER
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Saudi Arabia
Index
The Saudi labor force has undergone tremendous change in the
latter half of the twentieth century as a consequence of the
demise of traditional means of livelihood linked to pastoral
nomadism as a way of life for most of the people and the rise of
a modern economy. A large number of Saudis moved from these
occupations older into government service. Many foreign workers
were also brought into the kingdom by the private sector. With
the domestic labor force growing at an average of 5 percent
annually between 1975 and 1985, despite an annual population
growth among the highest in the world at 3.5 percent, foreign
labor was still necessary. Estimates varied, but a reliable
Western source indicated that total employment grew from more
than 1.7 million in 1975 to 2.2 million in 1980. The domestic
work force numbered 1 million people (58 percent of total
employment) in 1975. By 1980 employment of foreigners had risen
from 723,000 in 1975 to more than 1 million (or 46 percent of
total employment).
Ministry of Planning estimates, providing a breakdown of the
sectoral distribution of employment, showed a slightly different
picture. According to these figures, the total work force was 2.9
million in FY 1979, of which 1.3 million workers were in
producing sectors and 1.6 million were in the services sectors.
Labor was concentrated in four main sectors: in FY 1979
agriculture accounted for 15.8 percent of the total work force,
construction 20.4 percent, trade 10.6 percent, and community and
social services, including government service, 34.1 percent. By
FY 1989 the total labor force had risen to close to 5.8 million,
with 2.1 million in production sectors and 3.7 million in service
sectors. Agriculture's share had fallen to 9.9 percent,
construction was down to 16.4 percent, whereas trade's share of
the labor force rose to 15.6 percent and community and social
services were up to 42.4 percent. These figures indicated the
extent to which the government had a direct hand in the
livelihood of the average Saudi.
Data as of December 1992
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