Unemployment among Saudi citizens falls to 7.1% in Q2

Unemployment among Saudi citizens continued to decrease in the second quarter, falling to 7.1%, according to government data released on Monday, down from 7.6% in the previous quarter, and from 8.5% in the same period a year earlier.
The overall rate of unemployment, which includes expatriate workers, fell to 3.3% in Q2, down from 4.1% in the prior year period, the General Authority for Statistics said.

More than 60% of Saudi citizens are under the age of 30, and job creation – especially in the private sector – is a key focus of Crown Prince Mohammed Bin Salman’s Vision 2030 programme, which seeks to stimulate the economy and diversify it away from oil.

According to the latest data, 95.5% of unemployed Saudi citizens are willing to accept job offers in the private sector.
A gradual loosening of some social restrictions as well as labour market reforms have also encouraged more women into the workforce.

Saudi female unemployment fell to 12.8% in Q2, down from 14.2% in Q1, with the women’s labour market participation rate already surpassing the 30% target set for 2030. It stood at 35.4% in Q2.

The overall labour force participation rate among Saudi citizens has however struggled to increase significantly above the 50% mark: it stood at 50.8% in Q2, similar to Q2 of 2023.

In its recent country report, the International Monetary Fund (IMF) said that while labour market reforms are responding to the market need for skilled workers, “more is needed to increase labour force participation and reduce wage gaps.”