Oman’s labour market expands as jobseeker rate falls amid push for higher-skilled national workforce

Oman’s labour market showed further signs of recovery and expansion in 2025, with employment rising and the jobseeker rate declining, according to newly released official figures that point to steady economic momentum and ongoing labour reforms.

Total employment in the Sultanate increased by 1.5 per cent to around 2.7 million workers, reflecting sustained activity across key sectors of the economy. At the same time, the jobseeker rate eased to 3.1 per cent from 3.3 per cent a year earlier, suggesting gradual progress in easing labour market pressures.

The data underscores the government’s continued efforts to balance economic growth with workforce nationalisation goals under Oman Vision 2040, which aims to strengthen private-sector participation, diversify the economy and create more opportunities for citizens.

Expatriates continued to make up the majority of the workforce, accounting for 67.1 per cent of all workers, while Omanis represented 32.9 per cent. The private sector remained the dominant employer, accounting for 68.4 per cent of total jobs.

However, the figures also highlighted the persistent imbalance between public and private-sector employment for nationals. Omanis accounted for only 21.8 per cent of workers in private and family-run businesses, compared with 90.2 per cent in government employment.

The trend suggests that while the economy is generating jobs, a larger challenge remains in moving more Omanis into productive, specialised and higher-value roles within the private sector.

Skills development continues to be a major concern. More than half of the workforce, around 54.9 per cent, held qualifications below General Diploma level, while expatriates continued to dominate many specialised and senior technical positions.

In engineering-related private-sector jobs, expatriates occupied more than nine out of ten senior roles, underlining the need to strengthen local technical capabilities and accelerate workforce upskilling initiatives.

The data also showed a contrasting trend in government hiring, where new recruits were generally more highly qualified. Around 47.1 per cent of new public-sector hires held a bachelor’s degree or equivalent qualification, highlighting the growing need to better align education outcomes with private-sector labour demand.

Employment opportunities also remained heavily concentrated in Muscat Governorate, which accounted for 32.7 per cent of all jobs, followed by Al Batinah North Governorate at 16.4 per cent.

Overall, the latest figures paint a picture of a labour market that is steadily expanding and improving, supported by investment flows, private-sector activity and labour policies designed to strengthen economic resilience.

The next phase for policymakers is expected to focus on deepening Omanisation in quality private-sector jobs, improving skills matching and ensuring that economic growth translates into sustainable career opportunities for Omani citizens across the country.