JEDDAH: Saudi Arabia’s unemployment rate for nationals in the fourth quarter of 2024 reached 7 percent, marking a decrease of 0.8 percentage points compared to both the previous quarter and the same period last year, official data showed.

The data, released by the General Authority for Statistics, indicate a slight increase in the employment-to-population ratio for nationals, suggesting continued progress in the creation of job opportunities for the Kingdom’s growing workforce.

Although the overall labor force participation rate experienced modest declines, these figures underscore Saudi Arabia’s ongoing efforts to achieve the ambitious goals set forth in Vision 2030, particularly in terms of enhancing job creation and driving economic growth.

The improvement in the labor market is a critical component of Vision 2030, which aims to generate employment opportunities for Saudis while stimulating broader economic development. Strengthening the labor market remains a key pillar of the Kingdom’s long-term socio-economic strategy.

National labor market overview

The Labor Force Survey revealed that the overall unemployment rate for both Saudi nationals and non-Saudis reached 3.5 percent in Q4 2024, showing a decrease of 0.2 percentage points compared to the previous quarter. However, the figure marked a slight increase of 0.1 percentage points from Q4 2023.

The overall labor force participation rate for both Saudis and non-Saudis stood at 66.4 percent, a decrease of 0.2 percentage points from Q3 2024 and a 0.6 percentage point decline year on year.

Meanwhile, the employment-to-population ratio for Saudi nationals rose by 0.1 percentage points to 47.5 percent, reflecting a 1.0 percentage point increase from Q4 2023.

However, the labor force participation rate for Saudis decreased by 0.4 percentage points to 51.1 percent, although this still represented a 0.7 percentage point increase compared to the previous year.

Participation by gender

For Saudi females, the labor force participation rate decreased by 0.2 percentage points to 36 percent. Nevertheless, their employment-to-population ratio improved by 0.5 percentage points to 31.8 percent, and their unemployment rate dropped by 1.7 percentage points to 11.9 percent compared to the previous quarter.

Conversely, Saudi males experienced a 0.7 percentage point decrease in their labor force participation rate, which fell to 66.2 percent. Their employment-to-population ratio also declined, reaching 63.4 percent. However, the unemployment rate for Saudi males decreased to 4.3 percent compared to Q3 2024.

Youth employment trends

In terms of youth employment, GASTAT reported that the employment-to-population ratio for Saudi female youth (aged 15-24) increased by 0.3 percentage points to 13.9 percent in Q4 2024. In contrast, the employment-to-population ratio for Saudi male youth remained steady at 29.7 percent, although their labor force participation rate decreased by 0.8 percentage points to 33.8 percent.

The unemployment rate for Saudi youth also showed improvement, declining by 1.8 percentage points to 12.2 percent compared to the previous quarter.

Employment trends in core working-age group

For Saudis aged 25 to 54 years, key labor market indicators showed a slight increase in the employment-to-population ratio, which rose by 0.1 percentage points to 64.9 percent. However, the labor force participation rate for this group decreased by 0.2 percentage points to 69.2 percent. The unemployment rate in this age group also improved, falling to 6.2 percent compared to the previous quarter.

For Saudis aged 55 and above, labor market indicators for Q4 2024 indicated a decline in both the unemployment rate and labor force participation rate compared to the previous quarter.

Active job search

The GASTAT report highlighted that Saudi job seekers employ various methods in their active job search, with an average of 5.0 methods used per individual. The most common approach was inquiring with friends or relatives about job opportunities, utilized by 86.9 percent of jobseekers. This was followed by directly applying to employers (73.9 percent), and using the national unified employment platform, Jadarat (65.4 percent).

Willingness to work

Further insights into the unemployed Saudi population revealed that 94.1 percent are open to accepting job offers in the private sector. Among the unemployed, 61.9 percent of Saudi females and 45.2 percent of Saudi males are willing to commute for at least one hour. Additionally, 77.5 percent of unemployed Saudi females and 90.7 percent of unemployed Saudi males expressed a willingness to work for eight or more hours per day.