A study carried out by the Ministry of Labor recently has revealed private sector employees in the nonoil sector have critically low productivity compared to countries such as China and India. The study looked at ways to help companies improve productivity, and increase the number of Saudis working in the private sector.
The study was discussed at a workshop in Riyadh, attended by representatives of 25 firms from various economic sectors.
The study revealed that while productivity slumped in the Kingdom over the past decade, China and India doubled their levels over the same period.
It found that economic growth rates achieved by the Kingdom was based on employing more workers, while the growth in China and the United States, in contrast, was based on increased productivity.
The study showed that the Saudi economy ranks poorly in terms of best-practice indicators in comparison with the United States. It said that at its current growth rates, the Kingdom would not close this huge gap in the coming years.
The workshop participants discussed ways to increase the productivity of workers in the nonoil sector, including construction, manufacturing, commerce, hotels and hospitality services.
Ziyad Al-Sayegh, secretary-general for labor relations and customer services at the Labor Ministry, said the ministry's role encompasses providing support to business owners, employees and job seekers.
He said productivity is an indicator of a country’s ability to mobilize human and material resources to strengthen its production of goods and services, and maintain high levels of development.
Productivity low in private sector



