New research from Pearson (FTSE: PSON.L), the world’s lifelong learning company, reveals gaps at career and learning transition points are costing Saudi Arabia an estimated SAR 62 billion in lost earnings annually for Saudi nationals.
Pearson’s “Lost in Transition: Fixing Saudi Arabia’s SAR 62 billion ‘learn-to-earn’ skills gap” details the economic and personal impact of learning gaps during major career transitions – from formal education to work, moving from one job to another, and disruptions caused by AI automation. In a youth-driven economy where roughly 70% of the population is under 35, the report recommends approaches to learning and skills development to support the goals of Vision 2030.
Paying the price for broken career pathways
Key findings from the report include:
The total cost – Career transition inefficiencies and skills mismatches cost the Saudi economy SAR 62 billion in earnings annually for Saudi nationals. Including non-Saudi workers, losses rise to SAR 196 billion (4.2% of GDP).
Automation disruption – Accounts for roughly half of the total losses and puts 23% of Saudi jobs at high risk. Reducing reskilling time for affected workers by just 20% could add SAR 6.3 billion in annual earnings.
Education to work – As occurs in other key world economies, the transition from education to employment continues to be prolonged and could be better streamlined. High school and university graduates take an average of nearly 40 weeks to find work, reflecting persistent mismatches between their skills and labor market needs.
Changing jobs – Involuntary separations highlight deeper mismatches. Displaced Saudi workers spend on average 11.3 months unemployed before re-entering the workforce, with around 40% out of work for more than a year.
Generation at risk – Youth unemployment remains high at nearly 15%, and demographic pressures are rising: the population aged 20-24 is projected to grow from 2.69 million in 2025 to 3.22 million by 2030.
Five actions to build a resilient workforce and drive economic growth
Aligned to Vision 2030, Pearson has identified five key areas where collaboration across government, employers, and educators can strengthen the learning-to-earning pipeline, mitigate economic losses, and build a more resilient workforce. These recommendations include:
Supporting educators and employers to diagnose skills needs by identifying priority roles and tasks, enabling targeted skills development.
Shortening transition times by expanding internships, apprenticeships, and mentorships that provide early work experience and accelerate movement from classroom to career and from job-to-job.
Adapting curricula and training – both in formal education and vocational programs – to reflect real-world market demands and evolving technologies.
Expanding work experience opportunities through work placements and industry partnerships to bridge the gap between learning and doing.
Improving labor market intelligence by investing in platforms that enhance visibility into job openings and skill requirements to improve matching and reduce mismatches.
Naseem Tuffaha, Chief Business Officer, Pearson, said: “Saudi Arabia’s youth-driven economy holds tremendous potential, but inefficient transitions are costing SAR 62 billion annually while nearly a quarter of jobs face automation risk. The solution requires two key shifts: building modern skilling pathways that deliver job-ready capabilities and making ‘learning to learn’ a core competency across education and industry. This dual approach will help build the resilient, adaptable workforce needed to achieve the ambitions of Vision 2030.”
This report is part of Pearson’s “Lost in Transition: Fixing the Skills Gap” research series that warns of a potential global “skills chasm” between employer needs and employee capabilities and urgently calls for a fundamental shift in approaches to learning and skills development.
