Saudi Arabia has achieved the lowest unemployment rate in its history, dropping to 6.3% in the first quarter of 2025. The milestone was driven largely by the growing participation of Saudi women in the workforce, marking a major shift in employment under Vision 2030. The figure represents an unprecedented annual decline of 1.3 percentage points and a drop of 0.7 points from the previous quarter.
The General Authority for Statistics reported that Saudi women’s unemployment fell to 10.5%, its lowest level ever recorded, after dropping more than 11 percentage points since 2021. Women’s labor force participation also rose to 36.3%, while their employment rate climbed to 32.5% of the total population.
These gains reflect the impact of policies designed to expand opportunities and improve the quality of jobs available to women.
Human resources specialist Ali Al Eid described the achievement as the result of effective collaboration between government entities and the private sector. “What we see today is the outcome of years of focused policies to empower national talent and create a work environment that fosters growth,” he told Asharq Al-Awsat.
Al Eid noted that targeted initiatives such as Saudization, skills development, and support for entrepreneurs contributed significantly to reducing unemployment. He added that shifts in employment preferences, especially among young Saudis, have accelerated these changes.
He emphasized that the Saudi labor market has proven resilient despite recent global challenges. The expanding role of women has been especially critical in lowering unemployment and strengthening economic participation.
Al Eid highlighted that young Saudis’ increasing focus on vocational training and acquiring specialized skills has lifted labor participation to record highs in recent years.
“Continuing professional development programs is essential to ensure national talent is prepared for the future,” Al Eid said, pointing to Vision 2030 projects in tourism, technology, industry, and logistics as key sources of quality jobs.
He also underscored the importance of aligning education outcomes with labor market needs to close skill gaps and prepare young people for emerging sectors.
“What has been accomplished is a significant milestone on the road to broader success,” he added. “The next priority is to focus on the quality and sustainability of jobs and to enable Saudis to take on leadership and specialized roles that will drive long-term development.”
Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics, said the results demonstrate the effectiveness of the Kingdom’s economic and social reforms. He noted that the creation of more diverse, higher-quality roles - particularly those suited to women’s skills - has been instrumental in lowering unemployment.
“These positive indicators will help attract new investment, especially as the country prepares for major projects extending through 2034,” Al-Jassar said. He added that reaching a 5% unemployment rate under Vision 2030 has become a realistic goal.
Among Saudi men, the unemployment rate declined slightly to 4%, while their participation rate rose to 66.4%. Employment among Saudis aged 25–54 increased to nearly 66%, with unemployment falling to 5.4%.
Overall, including Saudis and expatriates, unemployment dropped to 2.8%, compared to 3.5% a year earlier. Labor participation rose to 68.2%. These results follow Saudi Arabia’s early success in meeting its target of reducing unemployment to 7%, five years ahead of schedule, prompting a new objective of 5% by the decade’s end.
