IMF Report: Oman Needs 220,000 New Jobs by 2032

The International Monetary Fund (IMF), in its latest report titled “Selected Issues Report on Oman”, has stated that Oman must create over 220,000 new jobs by 2032 to accommodate the growing working-age population.

Challenges in Oman’s Labor Market

According to IMF projections, around 550,000 Omanis will enter the workforce over the next eight years, making it essential to create more job opportunities, especially in the private sector.

Reducing Reliance on the Public Sector

The IMF has warned that Oman can no longer rely on the public sector as the primary employment provider, especially given fiscal constraints and efforts to reduce dependence on hydrocarbon revenues. Between 2012 and 2019, only 103,000 new jobs were created for Omanis, far below the future labor market demand.

86% of Private Sector Jobs Held by Low-Cost Expatriate Workers

While 56% of Omanis are employed in the private sector, 86% of all private sector jobs are occupied by low-cost expatriate workers. This heavy reliance poses challenges for Omani employment and the country’s economic development strategies.

Omani Women’s Workforce Participation at 32%

In 2023, only 32% of Omani women participated in the labor market, despite their strong academic performance and high test scores.
The IMF recommends Oman to invest in leadership programs for women, expand early childhood education, and improve access to financing for female entrepreneurs to boost female participation in the workforce.

Positive Employment Trends Post-COVID-19

✅ Private sector employment for Omanis increased by 18%, compared to 8% growth in the public sector.
✅ Employment among Omani women surged by 23% between 2020 and 2023, the highest growth rate.
✅ However, expatriate employment grew at more than twice the rate of national employment.

The Future of Employment in Oman & Vision 2040 Goals

The IMF stresses that to achieve Oman’s Vision 2040 goals, the country must implement comprehensive labor market reforms, including:

• 📌 Reducing the wage gap between the public and private sectors
• 📌 Increasing private sector employment for Omani nationals
• 📌 Enhancing vocational training programs
• 📌 Boosting female labor market participation
• 📌 Improving labor mobility for expatriate workers to enhance market efficiency

Implementing these key reforms will drive Oman towards a knowledge-based economy and sustainable non-hydrocarbon growth.