Oman’s labour market has undergone significant changes in 2023 as part of the country's Vision 2040 implementation efforts, according to the annual report by the Oman Vision 2040 Implementation and Follow-up Unit. The report highlights key achievements, including a 6.4% increase in the number of Omanis employed across the public and private sectors, totaling over 853,000, while expatriates accounted for 1.8 million workers, with a 7% growth.
These developments reflect the impact of ongoing reforms and strategic initiatives aimed at boosting national workforce participation and aligning the labour market with Oman’s long-term economic goals. Central to these reforms is the issuance of the new Labour Law under Royal Decree No. 53/2023, which seeks to improve working conditions, increase productivity and foster stability in the market.
A standout initiative in 2023 was the launch of a labour market needs survey in private sector establishments. This survey aims to align workforce development with real market requirements, ensuring that Oman’s workforce is prepared for future job demands.
Additionally, Oman issued 707,000 work permits and registered 634,000 work contracts for both Omanis and expatriates, demonstrating the robust nature of the country’s labour market. The Ministry of Labour also conducted 1,281 inspection visits to ensure compliance with Occupational Safety and Health Regulations, further showing a commitment to improving working conditions.
Notably, Oman established sectoral skills units for Fisheries, Engineering, and Information Technology. These units allow employers, industry leaders, and academic institutions to collaborate on developing workforce skills aligned with international standards.
The Ministry of Labour also launched the National Employment Policy project in 2023, focusing on bridging the gap between education and employment. With the project already 55% complete, it will play a key role in addressing Oman’s labour market needs and preparing the national workforce for future opportunities.
Looking ahead, the Ministry of Labour has outlined four major programmes, including the completion of the National Employment Policy Project, the development of the National Strategy for Professional Standards (49% complete) and a Labour Market Policies Development and Enhancement Project (65% complete). Additionally, a training and replacement project is expected to create 11,000 new training opportunities.
In 2023, Oman made significant strides in job creation. More than 13,000 job seekers secured positions in private sector establishments for the first time, while nearly 30,000 individuals were re-appointed through job rotation initiatives. In the public sector, 17,910 job seekers found employment, reflecting the government’s commitment to providing sustainable opportunities for Omani citizens.
In terms of skills development, the country trained 9,300 young Omani professionals to equip them for emerging job markets. This training initiative, along with the establishment of sectoral skills units, aims to close the gap between education outcomes and market demands, ensuring a more competitive workforce both locally and internationally.
Oman’s Marsad platform continues to play a crucial role in data-driven employment planning. Though not reformed in 2023, the platform offers decision-makers detailed labour market data, including job seeker statistics and education outcomes. This data helps bridge the gap between higher education and vocational training, ensuring the workforce is better prepared for future job opportunities.
Marsad’s six dashboards measure key indicators, such as population census data and labour force metrics, providing a comprehensive view of Oman’s labour market and guiding workforce development strategies.
The Job Security Fund, another key initiative, provided crucial support to more than 17,000 workers in 2023. The fund, which protects employees facing arbitrary dismissal or contract expiration, offered temporary financial relief to 13,599 terminated workers and 3,400 individuals with expired contracts.
The new Labour Law introduced in 2023 is a cornerstone of Oman’s labour market transformation. It seeks to enhance job stability and productivity while reducing disruptions such as strikes or business closures. The law also promotes Omanisation, encouraging higher participation of Omanis in technical, professional and administrative roles across various industries.
As Oman’s labour market grows, the Ministry of Labour is committed to long-term strategies that prioritize skills development, job creation, and regulatory reforms. By fostering a balanced and competitive employment landscape, the country is steadily advancing toward its Vision 2040 goals, ensuring prosperity for both Omani citizens and expatriates.