Labour Productivity Growth – KPI Status Overview
| Metric | Value |
|---|---|
| Baseline | -1.2% (2017) |
| Current | 0.8% |
| Target 2030 | 1-2% |
| Target 2040 | 2-3% |
| Status | At Risk |
Trajectory Analysis
Labour productivity growth has turned positive from -1.2 percent in 2017 to 0.8 percent but remains below the lower bound of the 2030 target range of 1 percent. Structural productivity gains require capital deepening, technology adoption, and a shift in sectoral composition toward higher-value activities. The economy continues to generate a disproportionate share of employment in low-productivity sectors such as retail trade and construction, which dilutes aggregate productivity improvements.
Risk Factors
Low-wage, low-productivity employment in construction and retail continues to dominate job creation. Capital investment in automation is constrained by SME access to finance. Brain drain of high-skilled Omanis to GCC neighbours erodes the human-capital base. The sponsorship system creates incentives for employers to hire cheap labour rather than invest in productivity-enhancing technology.
Positive Signals
The National Programme for Digital Economy is fostering technology adoption across sectors. Manufacturing output per worker is rising in Duqm and Sohar industrial zones. Higher education reform is improving graduate employability. The emerging green-hydrogen sector will create high-productivity jobs.
Methodology Note
Real GDP per employed person, with employment data from NCSI labour-force surveys and GDP at constant 2010 prices. Annual percentage change. Both Omani and expatriate workers are included in the employment denominator.
This tracker is updated quarterly by the Oman Vision 2040 Research Unit. Data sources include NCSI, the Central Bank of Oman, the World Bank, and relevant international organisations. Methodological notes are provided for transparency; users should consult primary sources for the most current figures.