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Tectonic shifts in the Saudi labour market

Saudi Arabia’s labour market has strengthened markedly in its post-pandemic recovery and the headline figures mask a dramatic shift in the size and composition of the labour force. In particular, social reforms have helped the female participation rate to double over the past seven years. Were it to double again, that could lift potential GDP growth by nearly 1%-pt, on average, by 2050. This also provides an important lesson that other EMs can boost growth though reforms aimed at lifting female employment.

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