MUSCAT: Oman’s total workforce has shown only a slight increase of 0.2 percent compared to the same period last year, indicating a generally stable labour market despite sectoral and demographic fluctuations. Micro, small, and medium enterprises (MSMEs) continue to form the backbone of the country’s employment landscape. Micro-enterprises, which employ fewer than five workers, account for the largest share at 37.5 percent of total employment. Small enterprises follow closely, while medium and large businesses make up smaller shares, highlighting the enduring importance of entrepreneurial and small business activities in sustaining jobs across various industries.
The private sector remains Oman’s largest employer, with over 1.4 million workers. However, this segment recorded a marginal decline of 0.9 percent year-on-year, which may point to market adjustments, cost optimisations, or shifts in business strategies. Meanwhile, the family sector—comprising domestic help and informal labour—witnessed notable growth, expanding by 4.7 percent to reach nearly 350,000 workers. This suggests a sustained demand for personal and household services, possibly driven by demographic trends and changing lifestyles. In contrast, the public sector saw a modest contraction of 0.6 percent, reflecting government efforts to streamline operations and encourage greater private sector participation in job creation.
Expatriate labour remains a significant component of Oman’s workforce structure, with Bangladeshi, Indian, and Pakistani nationals together making up 80 percent of the foreign workforce. Notably, the number of Bangladeshi workers fell by over nine percent, possibly due to labour policy adjustments or return migration, while Pakistani workers increased by nearly nine percent, indicating changing recruitment patterns or labour demand in specific industries. Indian worker numbers have remained relatively steady, underlining their established presence and consistent demand in key sectors such as construction, retail, and services. These shifts reflect the dynamic nature of Oman’s reliance on foreign labour to support various economic activities.
Despite the overall stable employment figures, the job seekers’ rate stands at 4.0 percent as of May 2025. Young adults aged between 15 and 24 continue to face higher unemployment levels, alongside graduates holding higher diplomas and bachelor’s degrees. This signals an ongoing challenge in aligning academic output with labour market requirements and highlights the need for targeted initiatives to enhance employability and workforce readiness among the youth. Addressing these gaps remains vital to sustaining economic growth and ensuring that Oman’s young population can fully participate in the national economy in the years to come.
