Riyadh: Leading recruitment firm Cooper Fitch has forecasted a 2% salary increase in Saudi Arabia this year, following a 4% increase in 2024. Their latest report indicates that while salaries are expected to rise, many organizations are prioritizing financial stability and may not revise salaries significantly in 2025.
Key Salary and Job Market Insights:
- In 2024, 79% of Saudi firms either maintained or increased salaries for new hires.
- 46% of companies increased salaries, with 8.5% raising them by more than 10%.
- 21% of firms reduced salaries for new hires despite increased hiring demand.
- 29% of organizations do not plan to adjust salaries in 2025, indicating a focus on cost control and stability.
- 53% of surveyed companies expect to expand their workforce in the next 12 months.
- However, 31% of employers anticipate downsizing by 2025.
Saudi Arabia’s Economic and Job Market Growth
Saudi Arabia has led Asian countries in job creation in 2024, recording a 7% economic growth in the fourth quarter. Dr. Trevor Murphy, CEO of Cooper Fitch, attributes this progress to strategic economic planning and investment initiatives. He also highlighted the rapid expansion of Saudi Arabia’s Public Investment Fund (PIF), which has positively influenced the labor market.
The banking, finance, and insurance sectors have been major contributors to job creation. Additionally, Knight Frank analysts project that Saudi Arabia’s total construction output will reach $181.5 billion by 2028, further driving employment opportunities.
Conclusion
While salaries are expected to rise by 2%, companies remain cautious about large-scale wage hikes due to economic stability measures. However, Saudi Arabia’s continued investments in key sectors could bring long-term growth and better job prospects.