Career transition gaps are costing Saudi Arabia SAR 62 billion in lost earnings each year for Saudi nationals, according to research from Pearson.
The report, Lost in Transition: Fixing Saudi Arabia’s SAR 62 billion ‘learn-to-earn’ skills gap, examines the economic and personal impact of learning gaps during transitions from education to work, job changes, and disruptions from AI automation.
When non-Saudi workers are included, the losses rise to SAR 196 billion, representing 4.2 per cent of GDP.
Skills mismatch costs Saudi economy SAR 62 billion per year in lost earnings
The findings show that 23 per cent of Saudi jobs face risk from automation, which accounts for half of the total losses. Reducing reskilling time for affected workers by 20 per cent could add SAR 6.3 billion in annual earnings.
High school and university graduates take an average of 40 weeks to find work, reflecting mismatches between their skills and labour market needs.
Displaced Saudi workers spend an average of 11.3 months unemployed before re-entering the workforce, with 40 per cent out of work for more than a year.
Youth unemployment stands at 15 per cent, with demographic pressures rising. The population aged 20-24 is projected to grow from 2.69 million in 2025 to 3.22 million by 2030. Around 70 per cent of the population is under 35.
Five solutions to fix Saudi Arabia’s learning-to-earning pipeline
Pearson has identified five areas where collaboration across government, employers, and educators can strengthen the learning-to-earning pipeline:
- Supporting educators and employers to diagnose skills needs by identifying roles and tasks
- Shortening transition times by expanding internships, apprenticeships, and mentorships
- Adapting curricula and training to reflect market demands and technologies
- Expanding work experience opportunities through placements and industry partnerships
- Improving labour market intelligence by investing in platforms that enhance visibility into job openings and skill requirements
“Saudi Arabia’s youth-driven economy holds tremendous potential, but inefficient transitions are costing SAR 62 billion annually while nearly a quarter of jobs face automation risk. The solution requires two key shifts: building modern skilling pathways that deliver job-ready capabilities and making ‘learning to learn’ a core competency across education and industry. This dual approach will help build the resilient, adaptable workforce needed to achieve the ambitions of Vision 2030,” Naseem Tuffaha, Chief Business Officer, Pearson said in a statement.
Vision 2030 goals require urgent skills development reform
The recommendations align with Saudi Arabia’s Vision 2030 goals. The report is part of Pearson’s “Lost in Transition: Fixing the Skills Gap” research series examining the global skills gap between employer needs and employee capabilities.
Pearson is a learning company serving customers in 200 countries with digital content, assessments, qualifications, and data. The company employs 18,000 people.
