The global labor market is facing a critical shift as technological advancements, demographic changes, and emerging challenges create both opportunities and risks. At the Global Labor Market Conference (GLMC) in Riyadh, experts and policymakers from over 40 countries came together to address the looming employment crisis. With a staggering 300 million job shortfall predicted in the next decade, urgent action is needed to ensure the future of work remains inclusive and sustainable.

Technology Disrupting Job Markets

As technology accelerates, many traditional jobs are disappearing, replaced by automation, artificial intelligence (AI), and digital tools. While these innovations boost productivity, they also create uncertainty about job opportunities. In his opening speech on Jan 29, 2025 at the GLMC, Saudi Arabia’s Minister of Human Resources, Eng. Ahmed bin Sulaiman Al Rajhi, emphasized the need for bold steps to adapt to these changes. “The world is witnessing rapid technological advancements. These developments require us to take proactive and bold steps to prepare for the future,” he said.

The minister highlighted the role of the conference as a critical platform for countries to collaborate on labor market solutions, especially in light of the profound changes happening globally. “We aim to build a flexible and inclusive labor market that can adapt to future challenges,” Al Rajhi stressed.

300 Million Job Shortfall

The Global Labor Charter offers a clear path forward, focusing on flexibility, inclusiveness, and skills development. As the world faces an uncertain future, it is clear that coordinated global action is the only way to build a labor market that works for everyone.

The World Bank’s Safaa El-Tayeb El-Kogali issued a stark warning at the conference, highlighting the severity of the global employment crisis. “Over the next decade, 1.2 billion young people in emerging economies will enter the workforce, but job creation will fall short by 300 million jobs, ” El-Kogali said. With millions of young people ready to work, the lack of job opportunities could lead to widespread unemployment and social instability.

El-Kogali underscored the urgency of international cooperation, stressing, “this is why this gathering is more important than ever.” The challenge, she argued, is not just economic, it is a humanitarian issue that requires a coordinated global response.

The Global Labor Charter

A key outcome of the GLMC was the release of the Global Labor Charter, a document that outlines strategies for creating more inclusive, adaptable, and sustainable labor markets worldwide. The charter focuses on preparing the workforce for the AI-driven future by investing in reskilling and upskilling programs. It also stresses the importance of making labor markets more flexible, particularly in supporting remote and part-time work.

One of the primary goals is to address youth unemployment and ease the transition from education to employment. Countries are encouraged to invest in education and training programs that equip young workers with the skills needed in an increasingly digital world.

Global Collaboration

The release of the Global Labor Charter comes at a time when international cooperation is more crucial than ever. The challenges facing the labor market are too vast for any one country to tackle alone. Minister Al Rajhi highlighted successful models from countries like Germany, Singapore, and Kenya, which have developed innovative solutions to bridge the skills gap and improve employment prospects. He pointed to Germany’s vocational training program, Singapore’s  SkillsFuture initiative, and Kenya’s Ijara Digital program as examples of programs that other nations can learn from.

Saudi Arabia’s Commitment to Workforce Transformation

Saudi Arabia, under its Vision 2030, is also taking proactive steps to address these challenges. The country has launched a new Labor Academy in partnership with the World Bank to train policymakers on global labor trends. Saudi Arabia’s focus on youth innovation and productivity aims to reduce the number of young people not in employment, education, or training (NEET) to 8% by 2030.

In addition, the Saudi government has rolled out initiatives aimed at improving youth employment, with more than 83,000 students trained in the private sector in 2024 alone. These efforts are part of a broader strategy to create a workforce that is not only adaptable but also prepared to thrive in the age of technology.

A Need for Immediate Action

The future of work will be shaped by technological advances, shifting demographics, and global collaboration. The GLMC provided a vital space for international leaders to discuss these pressing issues and explore solutions. With the projected 300 million job shortfall and the rise of automation, ensuring that labor markets can keep pace with these changes is critical.