TL;DR:
- Saudi Arabia revised its unemployment goal to 5%, amid record-low national unemployment at 7% and 2.8% overall nationwide.
- Women’s participation doubled as Female workforce participation reached 36%, up from under 20% five years ago.
- Private sector & skills growth: A 12% rise in Saudi employment in the private sector and expanded skills training signal long-term job market transformation.
In a landmark move reflecting rapid socio-economic transformation, Saudi Arabia has officially revised its unemployment target to 5%, down from previous goals under Vision 2030. The original 7% milestone is achieved six years ahead of schedule, falling to that level by the end of 2024. This early accomplishment prompted officials to set a more ambitious target of 5% by 2030. This comes as the Kingdom registers historic labour market improvements, including a dramatic decline in national unemployment to 7% by the end of 2024 and surging workforce participation among women and youth.Backed by official data from the General Authority for Statistics (GASTAT) and endorsed by the International Monetary Fund (IMF) in its 2025 report, the shift marks a strategic pivot, from just employment creation to sustainable, inclusive, and high-quality job generation.
Key labour market highlights (as of 2024–2025):
Unemployment Rates Fall Substantially
- Saudi nationals: Unemployment dropped to 7%, surpassing Vision 2030 interim milestones ahead of schedule.
- Total (including expats): Saudi Arabia’s total unemployment rate dropped to 2.8% in the first quarter of 2025, the lowest on record, as confirmed by the General Authority for Statistics (GASTAT). The decline reflects rising participation rates and successful workforce policies under Vision 2030.
- Women & Youth: Unemployment rates among these groups have halved over the last four years, an unprecedented shift driven by focused reforms and programs. Employment among core working-age Saudis (aged 25-54) increased to 65.9%, with unemployment falling to 5.4%.
Young Saudi men (15-24 years) saw their unemployment drop to 11.6%, despite a slight decline in participation to 33.0%. Young Saudi women improved their employment-to-population ratio to 14.6%, with participation rising to 18.4%.
More Saudis in Private Sector Roles
- Employment of Saudi nationals in the private sector rose by 12% in 2024, with continuous improvement expected through 2025.
- High-skill job opportunities expanded, with rising average wages, especially in tech, finance, and healthcare.
Female workforce participation reaches 36%
- That figure has doubled since 2018, marking a milestone in gender workforce equity. Saudi women’s unemployment dropped sharply 10.5%, down 3.6 percentage points year-on-year, driven by structural reforms and increased access to public and private job sectors. Female participation rose to 36.3%, with an employment-to-population ratio of 32.5%
- The surge is attributable to widespread labour law reforms, access to affordable childcare, flexible work options, and education system changes.
Policy drivers behind the progress
The IMF credits Saudi Arabia’s:
- February 2025 labour law updates, streamlining hiring and promoting fairness in employment.
- Investment in AI and technical education from school level to build a digital-savvy workforce.
- Expansion of skills training programs, particularly in partnership with the private sector.
- Support for freelance licenses and platform-based jobs, enabling gig economy growth.
A strategic shift in Vision 2030 execution
What sets this development apart is the government’s pivot from merely aiming for “more jobs” to creating meaningful, well-matched employment aligned with Saudi Arabia’s evolving economic needs. Authorities are not just reacting to market demands—they’re shaping them by combining education reform, private sector engagement, and technology integration.Saudi Arabia’s revised 5% unemployment target is not just a numerical shift, it is a statement of confidence in its economic trajectory. The reduction in unemployment, rising women’s participation, and growth of high-quality private sector roles demonstrate that Vision 2030 is progressing beyond aspiration into implementation. With the infusion of AI education, inclusive hiring policies, and a future-ready skills strategy, the Kingdom is not only addressing current job market needs but actively future-proofing its workforce in a rapidly changing global economy.
