Despite the efforts and the initiatives made by the Sultanate of Oman to reduce the rate of unemployment and to provide job opportunities for Omanis, this issue remains a challenge that requires innovative and sustainable solutions. This paper seeks to identify the factors causing the increase of unemployment rate among Omani youth (aged between 18 and 29) and proposes framework solutions by analyzing economic policies, government support, vocational training, social culture of Omani job seekers, and identify the impact of expatriate workforce on unemployment rate of Omanis. The study relied also on three theories and hypothesis, and found several factors affecting unemployment rates, including the mismatch between educational outcomes and labor market demands, government support for the private sector, heavy reliance on expatriate labor, and Omani youth’s social preference for employment in the public sector and multinational companies. The study further emphasizes the necessity of developing economic policies and offering incentives to the private sector to increase employment opportunities for Omanis. Additionally, it calls for strengthening vocational training programs to align with market needs. This study used a descriptive-deductive method and will provide a conceptual framework and recommendation that policymakers and stakeholder in Oman can utilize to enhance the private sector’s role in integrating the national workforce, with a focus on redirecting government investment toward specialized training programs. The study advocates for coordinated efforts between government and educational institutions to develop projects aligned with evolving market demands, reducing dependency on expatriate labor to ensure the sustainability of the national labor market and achieving sustainable economic and social development in the Sultanate.