عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Unemployment Rate Approaches 2030 Target

An employment gathering at the Chamber of Commerce in Qassim, Saudi Arabia. (Asharq Al-Awsat)
An employment gathering at the Chamber of Commerce in Qassim, Saudi Arabia. (Asharq Al-Awsat)
TT
TT

Saudi Unemployment Rate Approaches 2030 Target

An employment gathering at the Chamber of Commerce in Qassim, Saudi Arabia. (Asharq Al-Awsat)
An employment gathering at the Chamber of Commerce in Qassim, Saudi Arabia. (Asharq Al-Awsat)

The unemployment rate among Saudis has reached a historic low of 7.1% in the second quarter of this year, close to the Saudi Vision 2030 target of 7%. This decline highlights the success of government initiatives aimed at making the job market more appealing to local job seekers.

According to data from the General Authority for Statistics (GASTAT) on Monday, the unemployment rate dropped by 0.5 percentage points from 7.6% in the first quarter of this year and fell by about 1.4 percentage points compared to the same quarter in 2023.

Efforts by the Ministry of Human Resources and Social Development to support women have resulted in a significant drop in the unemployment rate among Saudi women.

Moreover, in the second quarter of this year, the Human Resources Development Fund allocated over SAR 1.65 billion to boost employment and encourage Saudis to join the local workforce.

GASTAT said Saudi Arabia’s overall unemployment rate, including citizens and non-citizens, fell to 3.3% in the second quarter of 2024, down from 3.5% in the first quarter.

The decline improves the Kingdom’s ranking to fifth among G20 countries with the lowest unemployment rates, as noted by the International Labor Organization in April.

There are now over 2.3 million Saudi workers in the private sector, contributing to a total of more than 11.4 million private sector workers in the Kingdom, the highest number recorded.

Saudi Arabia’s Vision 2030 plan, which aims to diversify the economy and reduce its reliance on oil, has included several reforms to stimulate job creation.

Most Viewed

 
 
Business

Lagarde: ECB's October Decision Will Reflect Greater Confidence on Inflation

ECB President Christine Lagarde. (EPA)
ECB President Christine Lagarde. (EPA)
TT
TT

Lagarde: ECB's October Decision Will Reflect Greater Confidence on Inflation

ECB President Christine Lagarde. (EPA)
ECB President Christine Lagarde. (EPA)

The European Central Bank (ECB) is increasingly confident that inflation will fall back to its 2% target and this should be reflected in its October policy decision, ECB President Christine Lagarde said on Monday.

She said cross-border banking mergers in Europe were "desirable" to boost their competitiveness, just as Italy's UniCredit was looking to increase its stake and possibly take over Germany's Commerzbank.

The ECB cut interest rates from record highs in June, and cut again earlier this month, but Lagarde gave few hints at the time about the bank's next move, leaving markets guessing.

Lagarde's comments on Monday will bolster already abundant bets on a further cut in October given a rapid deterioration of the growth outlook and falling energy costs.

Inflation in the 20-nation currency bloc likely fell below the ECB's 2% target for the first time since mid-2021 this month, a raft of national data suggests.

This, along with poor growth indicators, has raised bets on a 25 basis point rate cut in October and markets now see a 75% chance of a move, up from 25% seen early last week.

Lagarde also acknowledged the recent run of poor growth readings.

“Looking ahead, the suppressed level of some survey indicators suggests that the recovery is facing headwinds,” she told a regular hearing of the Committee on Economic and Monetary Affairs.

Still, she repeated the bank's usual line that the recovery is expected to strengthen and rising real incomes should allow households to consume more.

She added that the labor market, the source of some price pressures via rapid wage growth, remains resilient, even if wage growth is moderating and corporate profits are absorbing some pay increases.

Meanwhile, Lagarde said cross border mergers among Europe's biggest banks are needed, just as Italy's UniCredit was looking to increase its stake and possibly take over Germany's Commerzbank.

“Cross borders mergers -- banks that can actually compete at a scale, at a depth and at range with other institutions around the world, including the American banks and the Chinese banks -- are in my opinion desirable,” she told a parliamentary hearing.

She added that her comments should not be taken as a direct intervention in any particular deal.