Arab News
Arab news,
Thu, Oct 02, 2025 | Rabi al-Thani 10, 1447
Saudi unemployment eases to 3.2% in Q2 on continued labor market strength
Saudi Arabia:
Saudi Arabia’s overall unemployment rate stood at
3.2 percent in the second quarter of 2025, down 0.1 percentage point year on
year, underscoring ongoing labor-market resilience.
According to the General Authority for Statistics,
the yearly decline came even with a slight 0.4 point rise compared with the
preceding quarter.
The data also showed the total labor force
participation rate reached 67.1 percent, up 0.9 points year on year, indicating
that more people are engaged in work or actively seeking jobs.
The year-on-year improvement in headline
unemployment, alongside higher overall participation, aligns with the Kingdom’s
broader diversification push under Vision 2030, which seeks to expand
private-sector opportunities and sustain non-oil growth.
A central pillar of this strategy has been
Saudization policies, designed to increase the share of nationals in the
workforce, especially in sectors traditionally dominated by expatriates. These
efforts have been reinforced by record gains in female participation, which has
nearly doubled over the past decade and remains a critical driver of
labor-market expansion.
Among Saudi nationals, the unemployment rate
registered 6.8 percent, improving by 0.3 points year on year. The
employment-to-population ratio for Saudis came in at 45.9 percent, while Saudi
participation stood at 49.2 percent, both lower on a yearly basis, reflecting a
temporary easing in engagement after strong gains in recent periods.
In its latest release, GASTAT stated: “The results
showed that 95.8 percent of unemployed Saudis are willing to accept job offers
in the private sector.”
By gender, Saudi women saw an unemployment rate of
11.3 percent in the second quarter, up 0.8 percentage points compared to the
preceding quarter. Female participation eased 1.8 points to 34.5 percent, and
the female employment-to-population ratio slipped 1.9 points to 30.6 percent,
moves consistent with the broader quarterly cool-down.
The report added: “Additionally, 61.1 percent of
unemployed Saudi females and 45.1 percent of unemployed Saudi males are willing
to commute to work for at least one hour.”
For Saudi men, participation declined 2.4 points
to 64 percent, and their unemployment rate ticked up to 4.3 percent during the
same period.
While quarter-on-quarter easing in participation
and a slight rise in unemployment reflect normal variability during a heavy
project delivery cycle, the annual trend remains favorable.
Youth indicators offered a mixed but generally
stabilizing picture quarter to quarter. The unemployment rate for Saudi female
youth, aged 15 to 24, edged down 0.1 points to 20.6 percent, with participation
at 17.4 percent and an employment-to-population ratio of 13.8 percent.
Saudi male youth unemployment also dipped 0.1
points to 11.5 percent, with participation at 31.6 percent and
employment-to-population at 28 percent.
Among core working-age Saudis aged 25 to 54,
participation was 67.3 percent and unemployment 5.9 percent in the second
quarter, reflecting a quarter-on-quarter softening from elevated first quarter
levels.
The survey also shed light on job-search behavior.
Unemployed Saudis used an average of 3.6 active methods, led by direct
applications to employers at 72.4 percent, use of the national platform Jadarat
at 56.3 percent, and tapping friends or relatives at 50.5 percent, a snapshot of
how jobseekers are engaging with both formal and informal channels.
Furthermore, the findings noted that 68.1 percent
of unemployed Saudi females and 85.7 percent of unemployed Saudi males indicated
that they are willing to work for eight hours or more per day.
Globally, the average unemployment rate across the
Organization for Economic Co-operation and Development countries is just 4.9
percent as of mid-2025, according to the OECD’s latest data, underscoring how
Saudi is performing below many advanced economies.
Saudi Arabia’s 3.2 percent positions it well below
many advanced economies.
Within the Gulf Cooperation Council region,
unemployment rates and labor dynamics vary significantly. Saudi Arabia’s
joblessness remains higher than some Gulf peers with small national populations
and high migrant ratios, such as the UAE or Kuwait, whose official unemployment
rates are often reported in the low single digits.