The Saudi unemployment rate has reached an unprecedented low of 6.3% in Q1 2025, the lowest since labor data was first recorded. This milestone reflects the Kingdom’s successful labor market reforms and increasing female workforce participation.
According to the General Authority for Statistics, the Saudi unemployment rate among nationals continues its downward trend. Notably, female unemployment fell sharply to 10.5%, a 3.6 percentage point drop from last year. Additionally, women’s labor force participation rose to 36.3%, while their employment-to-population ratio climbed to 32.5%.
Meanwhile, male unemployment dipped slightly to 4.0%, marking a 0.2 percentage point annual decline. The broader labor market, including expatriates, saw unemployment fall to just 2.8%, contributing to the overall reduction of the Saudi unemployment rate.
The Kingdom initially aimed to reduce the unemployment rate to 7% by 2030 under Vision 2030. However, it surpassed this goal early, prompting a revised target of 5% by the decade’s end.
The International Monetary Fund (IMF) recently praised Saudi Arabia’s labor reforms, highlighting that unemployment had already dropped to 7% in 2024. These reforms, combined with economic diversification, have strengthened job creation across sectors, thus impacting the rate positively.
Saudi women, in particular, are benefiting from expanded opportunities in retail, tech, and entrepreneurship. Government initiatives like remote work policies and anti-discrimination laws have further boosted female employment rates, contributing to the improvement of the country’s unemployment metrics.
As the Saudi unemployment rate keeps falling, analysts predict sustained growth in workforce engagement. With Vision 2030 reforms gaining momentum, the Kingdom is on track to achieve even greater employment milestones.
