Saudi Arabia achieves unprecedented success in combating unemployment

A recent publication issued by the General Authority for Statistics on the Saudi labor market for Q4 of 2023 revealed that the unemployment rate for Saudis and non-Saudis was 4.4 percent, compared to 5.1 percent in Q3.

The unemployment rate for Saudis declined to 7.7 percent in Q4 of 2023, compared to 8.6 percent in the previous quarter. For Saudi females during Q4, 2023, the number decreased to 13.7 percent compared to 16.3 percent in the previous quarter, while the unemployment rate for Saudi males remained stable at 4.6 percent.

The Saudi labor market has long suffered from structural defects that have hindered several government efforts to reduce the unemployment rate in the Kingdom, which averaged 12.8 percent from 2016 to 2019.

However, since the launch of the Kingdom’s Vision 2030 in 2016, serious Saudization steps have been taken by the government, led by the Ministry of Human Resources and Social Development, in line with the Kingdom’s aim to reduce the unemployment rate to 7 percent by 2030.

Efforts to achieve Vision 2030 targets for unemployment rates are supported by the Ministry of Human Resources through several programs and projects aimed at empowering younger people of both sexes, with the goal of increasing their participation in the labor market.

The ministry has been striving to overcome all obstacles and harness all capabilities to serve Saudi youth, enabling them to find suitable careers with fair pay.

Empowering the private sector and improving the work environment has supported Saudization efforts.

Empowering Saudi females and adopting the principle of equality between men and women in job opportunities and pay has supported the government’s efforts to reduce the unemployment rate.

The Human Resources Development Fund was established in 2000 with the aim of supporting efforts to rehabilitate and employ the national workforce in the private sector by providing subsidies, training, and employment opportunities in both the private and nonprofit sectors.

Empowering Saudi females and adopting the principle of equality between men and women in job opportunities and pay has supported the government’s efforts to reduce the unemployment rate.

This is especially significant as the high rate of unemployment among women used to have a negative impact on the overall unemployment rate of Saudi nationals.

The unemployment rate among Saudi women dropped significantly to 13.7 percent in 2023 from 34 percent when the Kingdom’s Vision 2030 was announced in 2016.

The Unified National Employment Platform — Jadarat — is one of the government’s efforts to connect Saudi job-seekers with opportunities in both the public and private sectors through a comprehensive digital alignment.

The Kingdom has succeeded in reducing unemployment through these efforts, resulting in significant achievements in Saudization.

The number of Saudis working in the private sector has increased from 1.7 million in 2016 to 2.3 million in 2023, including more than 360,000 who entered the labor market for the first time.

Also, the participation of women in the workforce has increased from 17 percent in 2016 to 35.3 percent in 2023, surpassing the vision's target of 30 percent.

• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz