RIYADH: Saudi Arabia’s unemployment rate fell by 0.3 percentage points to 7.2 percent at the end of the fourth quarter of last year, nearing the Vision 2030 target, with the rate for females declining to historically low levels.
According to the Financial Analysis Unit at Al Eqtisadiah, the Saudi unemployment rate in the fourth quarter is once again approaching the Vision 2030 target of 7 percent, which was achieved for the first time in the fourth quarter of 2024 and remained below it until the second quarter of 2025 before rising in the third quarter to 7.5 percent, while its lowest level was in the first quarter at 6.3 percent.
The decline in the Saudi unemployment rate comes amid the growth witnessed by the domestic economy, particularly the non-oil sector, which has boosted the creation of more jobs in the private sector, supported by government spending and expansionary budgets.
The rate also improved with the empowerment of women and their integration into the labor market, noting that female unemployment was the main factor behind the higher unemployment rate among nationals, as it stood at 34.5 percent for women prior to Vision 2030, in addition to the outcomes of localization programs and policies, and support initiatives for private sector establishments.
Gross domestic product continued its growth in the fourth quarter of 2025 for the eighth consecutive quarter, accelerating to its fastest pace in four quarters at 5 percent year on year, supported by the continued growth of the oil sector for the third consecutive quarter, which recorded its fastest rate in 13 quarters at 10.8 percent, driven by higher production.
The non-oil sector also continued to grow for the 20th consecutive quarter, recording almost the same growth rate as the third quarter at 4.3 percent, while the government sector contracted for the first time in two and a half years, recording a decline of -1.2 percent.
Saudi women’s unemployment at 25-year low
The decline in Saudi unemployment in the fourth quarter of 2025 came as it fell to its lowest level in more than 25 years — since the authority began collecting data in 1999 — reaching 10.3 percent, down 1.8 percentage points from the third quarter of the same year. Meanwhile, the rate among males rose by 0.5 percentage points to 5.6 percent.
Female participation in the labor force rose in the fourth quarter by 0.8 percentage points to 34.5 percent, continuing to remain above the Vision 2030 target, while for males it rose by 0.4 percentage points to 64.7 percent.
On the other hand, the overall unemployment rate in Saudi Arabia, which includes citizens and residents, rose by about 0.1 percentage points to 3.5 percent, driven by an increase in non-Saudi unemployment by 0.3 percentage points to 1.7 percent.
Saudi women’s jobs reach 1m
Driven by the extensive empowerment of Saudi women — from allowing them to drive to promoting wage equality — their jobs in the private sector have doubled since the launch of Vision 2030, surpassing one million for the first time in history. They also accounted for 66 percent of the new jobs added for citizens in the sector.
The private sector added 811,000 jobs for citizens, including about 533,000 for Saudi women and 278,000 for men, bringing total Saudi employment in the private sector to a record 2.55 million jobs, a 52 percent increase over the period.
The private sector added 811,000 jobs for citizens, around 533,000 jobs for Saudi women and 278,000 jobs for men, raising Saudi employment in the private sector to a record 2.55 million jobs, an increase of 52 percent during the period.
Key milestones in Saudi women’s empowerment
Reforms have included labor policies lifting restrictions on women’s employment across multiple sectors and advancing pay equality, as well as amendments to maternity regulations.
They also include national programs to boost female workforce participation through training initiatives, childcare support, and improved mobility, alongside measures encouraging the private sector to hire more women.
