Sustainable Trends in Decent Work and Economic Growth : A Comprehensive Analysis of GCC Countries

Abstract

Decent work is essential for fostering workers’ professional and personal growth, as well as for guaranteeing social security and welfare through the enforcement of rules and regulations. Recently, the global labour market has been profoundly influenced by technological innovations, the growth of the services sector, and globalization. Consequently, the protection of fundamental workers’ rights has become increasingly important, establishing that decent employment is crucial for generating superior and higher-quality output. In the Gulf Cooperation Council countries, there is an increasing necessity to acknowledge the significance of decent work conditions for sustained economic development. This study aims to examine the influence of decent work determinants on sustained economic development from 1991 to 2022. The analysis employs panel data methodologies, specifically cross-sectionally Augmented Autoregressive Distributed Lag models, alongside robustness assessments utilising Driscoll–Kraay standard errors, Augmented Mean Group, and Common Correlated Effects Mean Group estimators, revealing that GDP per employee exerts a significant and consistent positive influence on economic growth. Conversely, other aspects of decent work, including unemployment, vulnerable employment, and self-employment, do not have statistically significant long-term consequences. The Westerlund ECM cointegration test verifies the lack of a long-term equilibrium link between decent work indices and economic development. The findings indicate that although labour market quality is significant, productivity is the primary catalyst for sustained growth in the GCC setting. Policymakers should prioritise productivity-enhancing changes within comprehensive employment and labour market strategies.