Everyone’s Talking About Oman’s Hiring Spree – But Here’s What They’re Not Saying

Oman’s Job Creation Challenge – A Turning Point for Talent, Technology, and Transformation

Oman’s need to generate 220,000 new jobs by 2032, as highlighted in a recent HRME article, is not just a headline – it’s a call to action that will define the nation’s economic future. The challenge is immense, but so are the opportunities if Oman can harness the right blend of policy, innovation, and workforce development.

“Oman’s Ministry of Labour plans to create 45,000 job opportunities in 2025, including 24,000 in the private sector and 10,000 in government, with a strong emphasis on nationalisation and skill development,” said Dr. Mahad bin Said Baowain, Minister of Labour to ET HR World.

The Private Sector: Engine of Growth or Stumbling Block?

While the government’s ambitious plans are commendable, the private sector remains both a promise and a puzzle. Despite Omanisation efforts, recent data reveals a persistent preference among private employers for expatriate workers, often due to cost considerations. In 2023, expatriates held 1.45 million private-sector jobs compared to just under 400,000 for Omani nationals. This imbalance persists even as the government incentivizes local hiring – such as the 200 rials ($500) monthly grant for each Omani hired in the private sector, a policy that, according to AGBI, “has not made any difference” in shifting employer preferences.

The reason? Employers say Omani graduates demand twice the salary of expatriates, while many young Omanis still aspire to public sector roles, where starting salaries are higher and working conditions more attractive. This wage and expectation gap is a structural hurdle that must be addressed for Oman’s job creation targets to be met.

A New Generation, New Skills

The future of Oman’s workforce will be shaped by its ability to align education with market needs. Vocational education and training (VET) have shown a “positive and significant correlation with economic growth,” according to a 2022 study published in Frontiers in Psychology. Oman’s sustained investment in VET – both in infrastructure and policy – has already begun to yield a more skilled labor force, particularly in technical and agricultural fields, where demand is rising.

The Ministry of Labour’s 2025 plan includes 11,000 training placements, a recognition that upskilling is essential for both employability and economic diversification. The ICT sector, for example, is projected to grow at a 10% CAGR between 2024 and 2029, signaling a clear direction for future job growth.

Women and Youth: Untapped Potential

Another critical insight is the underutilization of women and youth in the workforce. Female labor force participation reached a record 32% in 2023, but remains well below the global average of 51%. Youth unemployment, meanwhile, stood at 6.85% in 2023. Unlocking these talent pools will be essential for meeting Oman’s ambitious job targets.

Technology as a Catalyst

AI-driven recruitment tools and digital platforms like Tawteen are already being deployed to match talent with opportunity more efficiently. These innovations can help bridge the gap between education and employment, but must be paired with policies that make private sector jobs more attractive to Omanis—through competitive wages, career progression, and improved working conditions.

The Road Ahead: Policy, Partnership, and Purpose

Oman’s labor market is at a crossroads. The government’s efforts to transition Omanis into private sector roles are bearing fruit, with a modest 1.3% rise in Omani private sector employment and a corresponding decline in government jobs as of early 2025. But the scale of the challenge—220,000 new jobs by 2032—demands more than incremental progress.

The solution lies in a holistic approach:

• Bridging the wage gap between Omanis and expatriates to make private sector roles more attractive.
• Expanding vocational and digital skills training to align with emerging sectors.
• Leveraging technology for smarter, faster job matching.
• Tapping into the potential of women and youth through targeted policies and incentives.

As Oman navigates this transition, the stakes are high—but so is the potential for a more dynamic, inclusive, and resilient economy. The next decade will be defined by how effectively Oman can turn this job creation challenge into a springboard for national transformation.

“The policy of encouraging Omani talent into private businesses is gradually bearing fruit, with private firms now absorbing a growing share of the national workforce,” notes the Oman Observer.

The journey is just beginning, and the world is watching.