Saudi Arabia’s unemployment rate among nationals fell to a record low of 6.3 per cent in the first quarter of 2025, according to data released by the General Authority for Statistics.
The figure represents the lowest level since the Kingdom began publishing labour force statistics.
Women’s participation in the labour market drove the decline. The female unemployment rate dropped to 10.5 per cent, falling by 3.6 percentage points compared to the same period last year.
IMF praises Saudi labour reforms as unemployment drops to 6.3%
The labour force participation rate among Saudi women increased by 0.3 percentage points to 36.3 per cent. The employment-to-population ratio for women rose by 0.7 percentage points to 32.5 per cent.
Male unemployment among Saudis continued to decline, reaching 4.0 per cent – a year-on-year decrease of 0.2 percentage points.
The broader labour market, which includes both Saudi and non-Saudi workers, saw unemployment fall to 2.8 per cent in the first quarter of 2025, down from 3.5 per cent in the corresponding quarter of 2024.
The country had set a Vision 2030 target to reduce national unemployment to 7 per cent by the end of the decade.
The Kingdom achieved this goal ahead of schedule by the end of 2024, prompting the government to revise the target downward to 5 per cent by 2030.
The International Monetary Fund recognised the Kingdom’s labour market reforms in its statement following Article IV consultations last week.
The IMF noted that unemployment among the citizens had already reached 7 per cent in 2024, surpassing Vision 2030 targets ahead of schedule.
