World Bank’s Mamta Murthi cites Saudi partnership as model for evidence-based policy to jobs, human capital

SPA

Riyadh, Jan 26 (Saudi Arabia Breaking News) – World Bank Vice President for People Mamta Murthi said the partnership between Saudi Arabia and the World Bank offers a practical model for translating evidence-based policies into economic opportunities for companies of all sizes, supporting job creation and human capital development.

Speaking at the third International Labour Market Conference in Riyadh, Murthi said workforce systems must evolve to match rapid shifts in the global economy, emphasising the central role of the private sector in leading this transition and driving inclusive, sustainable employment growth.

Murthi described sustained investment in people as the foundation for unlocking human capital potential, and said this requires reshaping financing mechanisms and adopting new delivery models for workforce transformation programmes. She added that labour market challenges and opportunities differ by region, pointing to Sub-Saharan Africa and South Asia as areas with strong long-term growth potential if young populations are equipped with skills aligned with labour-market needs.

She outlined structural challenges in skills development globally, including education systems focused on inputs rather than outcomes, training designed for roles that no longer exist, persistent skills mismatches, and difficulties scaling successful solutions. She cautioned against supply-driven policies that are not linked to real demand in labour markets.

To address these gaps, Murthi highlighted three shifts in workforce development: expanding private-sector-led solutions, embedding market-based approaches to job creation through value chains, and prioritising sector-specific reforms that enable long-term labour-system transformation before moving to broader reforms. Deepening partnerships with employers, she said, is a key factor in aligning skills and jobs.

Murthi also pointed to the World Bank’s expanding knowledge agenda, including work on a new human capital index that integrates higher education and on-the-job learning to help governments diagnose skills gaps and integrate education, skills and labour-market considerations into economic and fiscal policy advice.

She cited initiatives linked to this agenda, including an annual labour market academy, a global advisory council of experts and practical toolkits for targeted, short-term workforce interventions. Murthi also announced the World Bank will issue a specialised report on Saudi Arabia’s progress in labour market reforms and skills development.