Productivity Analysis for Saudi Arabia

Labor Productivity for Saudi Arabia

The trend of labor productivity – measured as output per worker - for Saudi Arabia over the period 1992 to 2021 is presented in figure 1.

It is evident from the figure that the productivity of labor had been declining gradually since 1992 whereas a sharp decline is apparent in 1999.

With some improvements in labor productivity till 2004, it continued the downward trajectory till 2007.

Another brief period of a sharp decline in labor productivity can be seen during the global financial crisis of 2007-09.

Productivity of the labor was also adversely influenced by the Covid-19 pandemic as depicted by the figure mentioned below. However, an immediate recovery was posted in 2021.


Multifactor Productivity
(Total Factor Productivity) for Saudi Arabia

The trend of total factor productivity (also called multifactor productivity) for Saudi Arabia over the period 1974 to 2019 is presented in figure 4.

It can be observed that the total factor productivity exhibits overall negative trend over time. According to figure 4, total factor productivity declined sharply from 1974 and reached a minimum in 1985.

After some increase during 1985-1991, the total factor productivity continued the downward trajectory.

Global recessionary periods 1975, 1982, and 2009 can be marked as some of the major reasons for the decrement in total factor productivity. 

Source: Penn World Table