Saudi Unemployment Drops to Record Low

The unemployment rate among Saudi nationals has reached an all-time low of 6.3% in the first quarter of 2025, marking the lowest level since labor force data publication began, according to the General Authority for Statistics.

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Key Factors Behind the Decline

• Women’s Participation: A significant factor contributing to this historic decline is the increasing participation of Saudi women in the labor market.
  • Female Unemployment Rate: Fell to a record-low 10.5%, a year-on-year decrease of 3.6 percentage points.
  • Labor Force Participation Rate: Among Saudi women, this rate increased by 0.3 percentage points to 36.3%.
  • Employment-to-Population Ratio: Rose by 0.7 percentage points to 32.5%.
• Men’s Unemployment: The unemployment rate among Saudi men also continued its downward trend, slightly decreasing to 4.0%, a year-on-year decline of 0.2 percentage points.

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Broader Labor Market Trends

• The overall unemployment rate, including both Saudis and non-Saudis, decreased to 2.8% in Q1 2025, down from 3.5% in the same quarter the previous year.

Vision 2030 Goals

Initially, the Kingdom set an ambitious target to reduce Saudi unemployment to 7% by the end of the decade. This target was surpassed ahead of schedule by the end of 2024, prompting the government to revise its goal to 5% by 2030.

International Recognition

The International Monetary Fund (IMF), in its concluding statement following Article IV consultations, praised Saudi Arabia’s ongoing labor market reforms, noting that the unemployment rate among Saudi citizens had already dropped to 7% in 2024, well ahead of the Vision 2030 targets.

This significant progress reflects the Kingdom’s commitment to enhancing employment opportunities and economic diversification as part of its broader development strategy.

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