The Paradox
Oman spends significantly on education – approximately 5-6 percent of GDP – and has achieved near-universal literacy and high enrolment rates at all levels. Yet private-sector employers consistently report difficulty finding qualified Omani candidates, while graduate unemployment and underemployment persist. This paradox reflects fundamental misalignments between the education system’s outputs and the labour market’s needs. The mismatch is not primarily about access to education but about the type, quality, and relevance of education provided.
Skills Gaps
Specific skills gaps include: insufficient STEM (science, technology, engineering, mathematics) graduates relative to economic needs; weak English language proficiency, which is essential for private-sector employment in an expatriate-heavy economy; limited soft skills development (critical thinking, communication, teamwork, problem-solving); minimal exposure to workplace culture and professional expectations during education; and an oversupply of social science and humanities graduates relative to market demand. Technical and vocational education, which could address many of these gaps, has historically been stigmatised relative to university education.
Cultural and Structural Factors
The mismatch has cultural and structural dimensions beyond pure skills. Government employment offers higher salaries, shorter working hours, greater job security, and higher social status than most private-sector positions. This creates a rational individual incentive to wait for government jobs rather than accept private-sector positions. Family and social expectations reinforce this preference. The prevalence of low-cost expatriate labour in the private sector has created business models that are not economically viable at Omani wage levels, making it difficult to simply substitute national workers.
Reform Pathways
Addressing the mismatch requires simultaneous action on multiple fronts: curriculum reform emphasising practical skills and critical thinking; expansion of internship and work-placement programmes; growth of technical and vocational education with strong industry partnerships; graduate employability programmes that bridge the transition from education to employment; narrowing the public-private sector compensation gap; and engaging employers in education design to ensure relevance. Success will take a generation, but the costs of inaction – persistent youth unemployment, fiscal strain, and social frustration – demand urgency.