The unemployment rate among Saudi nationals dropped to an all-time low of 6.3 per cent in the first quarter of 2025, marking the lowest level since the Kingdom began publishing labor force data, according to the latest figures released by the General Authority for Statistics (GASTAT).
This historic decline was largely attributed to Saudi women’s increasing participation in the labor market and ongoing labor market reforms under Vision 2030.
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The female unemployment rate fell to a record-low 10.5 per cent, a year-on-year drop of 3.6 percentage points.
Live EventsMeanwhile, the labor force participation rate among Saudi women increased by 0.3 percentage points to 36.3 per cent, while the employment-to-population ratio rose by 0.7 percentage points to 32.5 per cent.
The unemployment rate among Saudi men also continued its downward trend, falling slightly to 4.0 per cent, a year-on-year decline of 0.2 percentage points.
Across the broader labor market, including both Saudis and non-Saudis, the overall unemployment rate fell to 2.8 per cent in Q1 2025, compared to 3.5 per cent during the same quarter a year earlier.
What is driving Saudi Arabia’s reduced unemployment rate
Women’s economic empowerment initiatives were a major factor in the unemployment decline in Saudi Arabia. The labor force participation rate for Saudi women increased to 36.3 per cent, while their unemployment rate dropped from 14.1 per cent to 10.5 per cent over the past year.
Among young Saudi women aged 15–24, participation rose to 18.4 per cent and the employment-to-population ratio reached 14.6 per cent, which shows early career engagement.
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For core working-age Saudis (25–54), the employment-to-population ratio rose to 65.9 per cent, while labor force participation increased to 69.6 per cent. Unemployment for this group declined to 5.4 per cent.
Although labor force participation among young Saudi men (15–24) declined to 33.0 per cent, their unemployment rate also dropped to 11.6 per cent, which signals that many who remain active in the job market are securing positions. However, one of the points of concern remains as youth employment, as the employment-to-population ratio for this group also fell to 29.2 per cent
Among older Saudis (55+), both labor force participation and unemployment rates dropped compared to Q4 of 2024.
Vision 2030 Goals Recalibrated
Having achieved its Vision 2030 unemployment target of 7 per cent in 2024, the Saudi government has revised its target to 5 per cent by 2030.
The International Monetary Fund, in its latest review, commended the labor market reforms that enabled this achievement.
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How Saudis search for jobs
The GASTAT report also highlighted the most popular job search methods. Around 75.8 per cent of job seekers directly approached employers, followed closely by 74.6 per cent who used the national unified employment platform, Jadarat.
In addition, 64.5 per cent reported posting or updating their CVs on professional social media platforms.