With a population estimated at around 359 million people, the Arab world is by no means a unified economic entity. Studying the labor market issues in the Arab world should start by acknowledging and incorporating the diversity of socio-economic outcomes within it. This paper first argues that labor market issues in the Arab regions can be meaningfully analyzed by grouping Arab countries into 6 economic categories. These categories are formed by the interaction between hydrocarbon endowments and labor market characteristics.