Saudi Arabia’s unemployment rate dropped to 7% in the fourth quarter of 2024. This is a notable improvement, down by 0.8 percentage points from both the previous quarter and the same time last year. The data shows that the Kingdom’s job market is becoming more favorable, especially for Saudi nationals.
Key labor market indicators for Saudis aged 25 to 54 showed positive growth. The employment-to-population ratio rose by 0.1 percentage points, reaching 64.9%. This indicates a slight increase in job opportunities for this age group. Although the labor force participation rate dropped slightly, the Kingdom continues to make strides in job creation, reflecting the progress of Vision 2030.
Vision 2030 is a long-term plan that aims to diversify Saudi Arabia’s economy and generate more jobs for Saudis. The decrease in the unemployment rate is a step forward in achieving these goals. The Kingdom is focused on improving its labor market and creating opportunities for its citizens, particularly the youth and women.
For both Saudi males and females, the labor force participation rate showed some changes. Saudi females had a decrease of 0.2 percentage points, reaching 36%. However, their employment-to-population ratio improved by 0.5 percentage points, reaching 31.8%. Their unemployment rate also dropped by 1.7 percentage points, marking significant progress.
On the other hand, Saudi males saw a decrease in both their labor force participation and employment-to-population ratio. Despite this, their unemployment rate decreased to 4.3%, showing positive results compared to the previous quarter.
Youth employment trends also showed improvement. Saudi female youth (ages 15-24) saw an increase in their employment-to-population ratio, which went up by 0.3 percentage points to 13.9%. The unemployment rate for Saudi youth decreased by 1.8 percentage points, reaching 12.2%.
The labor market for Saudis aged 55 and above showed a decline in both the unemployment rate and the labor force participation rate. This group continues to face challenges in the workforce.
Saudi job seekers are using various methods to find work. The most common approach is asking friends or family about opportunities. Many also apply directly to employers or use the national employment platform, Jadarat. The data suggests that most unemployed Saudis are open to working in the private sector. More than 90% of unemployed Saudi males are willing to work for long hours, showing their strong commitment to finding work.
Overall, Saudi Arabia’s labor market continues to improve, with Vision 2030 playing a crucial role in shaping the future of work in the Kingdom.
