The Impact of Fourth Industrial Revolution Technologies on the Labor Market and Jobs Skills: Empirical Evidence from Saudi Arabia

Authors

  • Ahmed bin Ali Al Adadi Department of Economics, College of Business King Khalid University, Kingdom of Saudi Arabia
  • Bader Saleh Al-Abdi Department of Business Administration, College of Business King Khalid University, Kingdom of Saudi Arabia

DOI:

https://doi.org/10.55074/hesj.vi48.1511

Keywords:

Fourth Industrial Revolution, automation, artificial intelligence, digitization, robotics, labor market, and replaceable job skills

Abstract

This study aims to explore the impact of Fourth Industrial Revolution technologies-including automation, artificial intelligence, robotics, and the Internet of Things-on the labor market in Saudi Arabia, with a focus on identifying the skills and occupations most susceptible to replacement. The study employed a quantitative analytical approach, using a field survey distributed to a sample of (341) employees across various sectors. The analysis was based on the methodology of Frey & Osborne (2017), which estimates automation probabilities based on the nature of job-related tasks. A total of 26 replaceable skills were identified and categorized into four main groups: repetitive physical movement, information processing and analysis, equipment control, and individual emotional performance. The results showed that approximately (47%) of employees work in jobs that are vulnerable to some degree of technological replacement, while the percentage drops to (15%) when analyzing tasks fully automatable. The findings also revealed a low level of technological awareness, with (30%) of respondents unaware of the degree of technological repetition in their roles. Factor analysis indicated a heavy reliance on traditional skills among most workers, along with a noticeable gap in digital, cognitive, and future-oriented skills. Only (22%) of the sample had received professional training related to digital transformation. The study concludes that there is an urgent need to accelerate the development of national human capital policies and adopt flexible training programs aligned with digital transformation. The results align clearly with the goals of Saudi Vision 2030, which emphasizes preparing national talent for the future labor market and enhancing digital and human skills through initiatives such as the "Human Capability Development Program" and digital skills programs. These efforts aim to build a knowledge-based digital economy and transform automation challenges into opportunities for innovation and growth.

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Published

2025-07-30

How to Cite

The Impact of Fourth Industrial Revolution Technologies on the Labor Market and Jobs Skills: Empirical Evidence from Saudi Arabia. (2025). Humanities and Educational Sciences Journal, 48, 839-870. https://doi.org/10.55074/hesj.vi48.1511

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