Exploring the Sharp Decline in the Number of Low-Wage Omani Workers

Oman’s private sector is experiencing a transformative shift in its employment landscape, marked by a significant decrease in the number of low-wage Omani workers. As the economy thrives, employees are seeking better-paying job opportunities, leading to a notable change in the distribution of workers across salary groups. This article delves into the data released by the National Centre for Statistics and Information (NCSI), highlighting the decline in low-wage workers, the growth of higher-paid positions, and the government’s Omanisation efforts to create more employment opportunities for citizens.

Data from the National Centre for Statistics and Information (NCSI) reveals an 18.4% decline in the number of Omani workers earning between RO325-RO400, registered with the Public Authority for Social Insurance (PASI). This decline, observed from December 2022 to June 2023, indicates a shift in the job market as employees seek better-paying opportunities.

While the lower salary bracket experienced a decline, the number of Omani workers earning between RO400-RO500 remained relatively stable. Approximately 50,200 workers were recorded in June 2023, similar to the figures from six months prior, indicating a level of consistency in this salary range.

The NCSI data highlights a significant growth of 7.7% in the number of Omani workers earning between RO500-RO600. This increase demonstrates the trend of employees moving towards higher salary brackets, with 38,364 workers recorded in June 2023, up from 35,615 in December 2022.

The decline in the number of lower-wage Omani workers and the growth of higher-paid positions in the private sector are positive indicators of the government’s Omanisation efforts. The Ministry of Labour has intensified its initiatives to create employment opportunities for citizens by providing training and equipping them with additional skills.

While the medium and higher salary brackets experienced growth, the overall number of Omanis employed in the private sector and registered with PASI witnessed a decline of 3.6%. The data showed a decrease from 286,026 in December 2022 to 275,623 as of June 2023, reflecting the dynamic nature of the job market.

The decline in the number of low-wage Oman workers signifies a shift in the private sector employment landscape, with more employees seeking better-paying opportunities. The government’s Omanisation efforts are bearing fruit as higher-paid positions witness growth. However, while the job market evolves, the overall number of Omani workers in the private sector has experienced a slight decline. As Oman continues to prosper, it will be crucial for the government and private sector stakeholders to collaborate in creating a sustainable and inclusive job market that benefits citizens and the nation’s economy.

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