Saudi Arabia’s unemployment rate among nationals fell to a new low of 6.3% in the first quarter of 2025, the lowest level since official labour statistics began. The drop was caused by a significant increase in women’s workforce participation, highlighting the Kingdom’s economic diversification efforts under Vision 2030.
The unemployment rate among Saudi women decreased drastically to 10.5%, down 3.6% points from the previous year and the lowest figure on record. Female labour force participation increased to 36.3%, while the employment-to-population ratio for women improved to 32.5%, indicating greater involvement in the employment market.
The unemployment rate among Saudi men also declined, to 4.0%, down 0.2 percentage points year-on-year. The overall unemployment rate, which includes both Saudis and non-Saudis, fell to 2.8% from 3.5% the previous year. Saudi Arabia had aimed to reduce unemployment among nationals to 7% by 2030, but achieved this goal by the end of 2024. The administration has established a revised target of 5% by 2030.
The International Monetary Fund welcomed Saudi Arabia’s labour market changes, adding that the success indicates strong policy execution and private sector dynamism as the country diversifies its economy.
