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The General Authority for Statistics (GASTAT) announced that Saudi Arabia’s overall unemployment rate, encompassing both Saudis and non-Saudis, fell to just 2.8 per cent in the first quarter of 2025, marking a continued rebound in Saudi Arabia’s labor market. The total labor force participation rate reached 68.2 per cent, with Saudi participation rising to 51.3 per cent, up from Q4 2024.
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According to GASTAT’s Labor Market Statistics Bulletin for Q1 2025, Saudi male participation increased to 66.4 per cent, and their unemployment rate dropped to 4 per cent. The report attributed much of the labor market progress to successful economic reforms and labor empowerment policies, a Saudi Press Agency report said.
Female participation hits new milestones
One of the most notable developments was the continued rise in female participation. The labor force participation rate among Saudi women climbed to 36.3 per cent, while their unemployment rate dropped to 10.5 per cent, a significant decline from the previous quarter.
These improvements reflect the impact of national women’s empowerment initiatives, which have enhanced their economic involvement and role in sustainable development.Shifts in Youth Employment
Among young Saudi women aged 15–24, the employment-to-population ratio rose to 14.6 per cent, with labor force participation up to 18.4 per cent. In contrast, young Saudi men in the same age group saw a decrease in both employment-to-population ratio (29.2 per cent) and labor force participation (33 per cent), though their unemployment rate fell to 11.6 per cent, suggesting a tightening labor market.
Prime working age group sees strong gains
For Saudis aged 25–54, labor force participation reached 69.6 per cent, with an employment-to-population ratio of 65.9 per cent. Unemployment in this group dropped to 5.4 per cent, reflecting improved job availability and workforce integration.
Saudis aged 55 and older saw a slight decline in both participation and unemployment, signaling gradual retirement transitions.
Saudi unemployment at all-time low
Saudi nationals’ unemployment dropped to a record low of 6.3 per cent in Q1 2025. Since 2021, the Saudi female unemployment rate has declined by over 11 percentage points.
In terms of job search behavior, 75.8 per cent of job seekers preferred applying directly to employers, followed by 74.6 per cent using the national Jadarat platform. 64.5 per cent updated their CVs on business-focused social media.
