Saudi Unemployment Rate Falls to Historic Low of 6.3% in Q1 2025
Riyadh, The Gulf Observer: Saudi Arabia’s unemployment rate among its citizens dropped to a historic low of 6.3% in the first quarter of 2025, the lowest level recorded since the Kingdom began publishing labor force data, according to the latest figures released by the General Authority for Statistics.
The milestone is largely driven by the growing participation of Saudi women in the workforce. The female unemployment rate declined to a record-low 10.5%, marking a significant year-on-year drop of 3.6 percentage points. The female labor force participation rate edged up by 0.3 percentage points to 36.3%, while the employment-to-population ratio increased by 0.7 percentage points, reaching 32.5%.
Unemployment among Saudi men also continued its downward trajectory, falling slightly to 4.0%, a year-on-year decrease of 0.2 percentage points.
Across the broader labor market—encompassing both Saudis and non-Saudis—the overall unemployment rate fell to 2.8% in Q1 2025, compared to 3.5% in the same quarter of the previous year.
Saudi Arabia had initially aimed to reduce national unemployment to 7% by 2030 under its Vision 2030 plan. That goal was achieved by the end of 2024, well ahead of schedule, prompting the government to revise its unemployment target downward to 5% by 2030.
In its concluding statement following Article IV consultations last week, the International Monetary Fund (IMF) praised the Kingdom’s ongoing labor market reforms, noting that the rapid decline in Saudi citizen unemployment to 7% in 2024 was a major milestone in economic diversification and labor force development.
