TL; Dr:
- Saudi Arabia’s overall unemployment rate which includes citizens and migrants declined to only 2.8% in Q1 2025, below 3.5% in Q4 2024.
- Unemployment of Saudi citizens reached 6.3%historical following, further
Vision 2030 A target of 7%, indicating a modified objective of 5% by 2030. - The Saudi woman unemployment fell to 10.5%, while the female participation rose to 36.3%. Male unemployment fell to 4.0%, and male participation reached 66.4%.
- The labor force’s participation rate with Saudi civil participation increased to 68.2%in total, increased by 51.3%.
In an important milestone for the economic change of the Kingdom, Saudi Arabia’s total unemployment rate fell to 2.8% in the first quarter of 2025, the lowest on the record, as confirmed by the general authority for statistics (Gastat). The decline shows rising participation rate and successful workforce policies under Vision 2030. For Saudi citizens, the unemployment rate hit the historic low of 6.3%, crossed the earlier goals and inspired a new ambition to reduce it by 5% by 2030.
Breaking data
Overall unemployment and participation rate
- Gastat reported a comprehensive labor force participation rate of 68.2% in Q4 2024, increased from 66.4%.
- Among the Saudi citizens, the rate of participation increased to 51.3%, indicating comprehensive workforce integration.
Insight gender according to gastat
- Unemployment of Saudi women fell rapidly by 10.5%, which increased by year-to-year 3.6 percentage points, operated by structural reforms and increased access to public and private job sectors. The female participation increased by 36.3%, with the employment-to-public number of 32.5%.
- For Saudi men, unemployment declined to 4.0%, while their labor force participation reached 66.4%.
Youth and age cohabitation
- Employment between the core working-edge Saudi (aged 25–54) increased by 65.9%, falling down to 5.4%. Young Saudi men (15–24 years) dropped their unemployment to 11.6%despite a slight decline in the participation of 33.0%. Young Saudi women improved their employment-to-publicity ratio to 14.6%, with participation to 18.4%.
What is a decline?
Many factors are credited for this improvement:
- Vision 2030 Economic Reforms:
The government has invested heavy in infrastructure, technology, tourism (eg, NEOM and Red C projects), and financial services, generating thousands of new jobs. - National Labor Program:
Programs such as “Nitakat” and Human Ability Development Program are in line with Saudi job seekers with private sector roles. - Increase in women’s employment:
The subsequent corrections since 2018 have lifted the dynamics and mentoring restrictions, making Saudi women entering the workforce. The latest Gastat data falls to 1.2% of women’s unemployment compared to the previous quarter. - Private sector encouragement:
Companies that hire Saudi citizens are benefited from subsidies, rest taxes and quick licensing procedures. This has encouraged more private firms to make employment local.
Labor market challenges remain
Despite the progress, challenges remain:
- Young unemployment, while reforms, still have 15%.
- Many Saudi prefer public sector jobs due to high salary and security.
- Private sector alignment with graduate skills is inconsistent.
The Ministry of Human Resources and Social Development (MHRSD) recently announced a plan to promote hybrid work opportunities for Saudi women to expand vocational training participation and address gaps in rural employment sectors.
why it matters:
Saudi Arabia’s progress on unemployment is higher than only one statistical reform, it represents a cultural and structural change. By 2030, The Kingdom aims to have 70% private sector workforce by Saudi citizens. Getting this will determine the stability of its diversification agenda and reduce pressure on public sector employment. The decline in unemployment rate promotes investors’s confidence, aligning with international development benchmarks, providing the basis for more inclusive and competitive labor market. By July 2025, a steady decline in unemployment of Saudi Arabia reflects an active approach to restructuring its economy and empower its workforce. Constant investment in skill-making, gender inclusion and private sector encouragement is expected to maintain this speed. However, maintaining long -term success will depend on reducing regional inequalities, aligning better education with industry needs, and ensuring improvement to reach all areas of Saudi society.
FAQS:
Q1: What is Saudi Arabia’s unemployment rate by 2025?According to Q1 2025, according to Gastat, the overall unemployment rate is 2.8%.Q2: Which programs are helping to reduce unemployment?Major programs include Saudisation (NITAQAT), human ability development program and support for private sector work.Q3: Is women employment growing in Saudi Arabia?Yes. Women participation is now 36.3%, in which the unemployment of women is decreasing due to the initiative of the target government.Q4: Which areas are producing the most jobs?Technology, tourism, logistics and finance are the fastest growing employment sectors.
