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Saudi Unemployment Hits Record Low, Approaches ‘Vision 2030’ Target

Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
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Saudi Unemployment Hits Record Low, Approaches ‘Vision 2030’ Target

Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)
Unemployment rate hits historic low in Saudi Arabia, bolstered by women entering the job market (Asharq Al-Awsat)

In the last quarter of 2022, the unemployment rates in Saudi Arabia hit a historical low of 8%, which is only one percentage point away from the targeted rate of 7% specified in the country's national transformation plan, “Vision 2030.”

The decrease in joblessness in the Kingdom can be attributed to the government’s activities and the private sector’s role in employment operations.

Legislation and localization programs in the country have also played a crucial role.

According to experts, government procedures and regulations related to human resources, whether in the public or private sector, have efficiently worked to create jobs and contribute to reducing the unemployment rate.

Saleh Al-Sedmi, a human resources expert, confirmed that giant projects, foreign companies entering the Saudi market, and accelerated employment in both the public and private sectors have directly contributed to the decrease in unemployment rates in the Kingdom.

Speaking to Asharq Al-Awsat, he added that Saudization programs targeting active and promising sectors and employing citizens have also helped increase the number of employed individuals in the local market.

Moreover, some foreign companies relocating their regional headquarters to the Saudi capital, Riyadh, have reinforced efforts to reduce non-employment.

The country's overall unemployment rate, including non-citizens, fell to 4.8% in the final three months of 2022, according to a statement by the General Authority for Statistics (Gastat).

Gastat also revealed that unemployment in Saudi Arabia among citizens decreased to 8% in the fourth quarter of 2022, down from 9.9% the previous quarter.

Workforce participation among female citizens is also on the rise, with unemployment among Saudi women dropping to 15.4% in the final three months of 2022 from 20.5% in the previous quarter.

Despite the economic hardships experienced by many countries worldwide, including G20 states, due to market-based challenges and geopolitical factors, the unemployment rate in Saudi Arabia exceeded expectations, according to Gastat.

The decrease in unemployment levels in the Kingdom is the result of legislation, Saudization programs, job support, and monitoring of facilities by all relevant government entities.

Plans and initiatives launched under Vision 2030 have also contributed to achieving the highest rate of labor force participation, as per Gastat.

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Five Nations and EU Urge Trump Not to Impose New Airplane Tariffs 

An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
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Five Nations and EU Urge Trump Not to Impose New Airplane Tariffs 

An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)

Five nations and the European Union, as well as airlines and aerospace firms worldwide, urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, documents released on Tuesday showed.

Airlines and planemakers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75 billion for the US industry.

The documents made public by the US Commerce Department bared concerns over the fallout of possible new tariffs expressed by companies as well as nations such as Canada, China, Japan, Mexico and Switzerland, besides the European Union.

"As reliable trading partners, the European Union and United States should strengthen their trade regarding aircraft and aircraft parts, rather than hinder it by imposing trade restrictions," the EU wrote.

It would consider its options "to ensure a level playing field," it added.

Trump has already imposed tariffs of 10% on nearly all airplane and parts imports.

"No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors," the Chinese government wrote.

Separately, US planemaker Boeing cited a recent trade deal unveiled in May with Britain that ensures tariff-free treatment for airplanes and parts.

"The United States should ensure duty-free treatment for commercial aircraft and their parts in any negotiated trade agreement, similar to its efforts with the United Kingdom," Boeing told the Commerce Department in a filing.

Mexico said in 2024 it exported $1.45 billion in aircraft parts, just a tenth of the total, to the United States. The EU said it took US exports of aircraft worth roughly $12 billion, while exporting about $8 billion of aircraft to the US.

In early May, the Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.

Last week, Delta Air Lines and major trade groups warned of tariffs' impact on ticket prices, aviation safety and supply chains.

"Current US tariffs on aviation are putting domestic production of commercial aircraft at risk," Airbus Americas CEO Robin Hayes said in a filing.

"It is not realistic or sensible today to create a 100% domestic supply chain in any country."

Boeing said it had been increasing US content in its airplanes over the last decade and its newest airplanes, the 737 MAX 10 and 777X, would have "more than 88% domestically-sourced content."

The United Auto Workers union, which represents 10,000 aerospace workers, said it supports tariffs and domestic production quotas, adding that US aerospace employment has fallen to 510,000 in 2024 from 850,000 in 1990.

"To safeguard the entire aerospace supply chain across the commercial and defense sectors, comprehensive tariffs and production quotas on several products are needed," it said.

JetBlue Airways opposed new tariffs, however, saying, "Trade policy should reinforce, not destabilize, the proven systems that keep our aircraft flying safely and affordably."