Unemployment rates in Saudi Arabia saw a slight increase by the end of Q3 2024, reaching 7.8% compared to 7.1% in Q2 of the same year, according to data from the General Authority for Statistics. Despite this rise, the rate remains close to the Saudi Vision 2030 target of 7%, indicating significant progress in the national economy.
Factors Contributing to the Rise in Unemployment
The increase in unemployment is primarily due to higher participation of Saudi women in the labor market. Female unemployment rose by 0.8 percentage points to 13.6%, while male unemployment increased by 0.7 percentage points to 4.7%. However, this rise does not reflect economic weakness but rather an increase in job seekers compared to new opportunities.
Private Sector Growth and Increased Employment
The non-oil economy in Saudi Arabia saw notable growth, with approximately 60,000 new jobs added to the private sector in Q3. The number of Saudis employed in this sector reached 2.38 million, a record compared to 2.32 million in the previous quarter, reflecting the success of economic policies in creating new job opportunities.
Women’s Empowerment and Its Role in Reducing Unemployment
Women’s empowerment has been one of the key factors in reducing overall unemployment rates. Female unemployment has significantly decreased since 2016, dropping from 34.5% to 13.6% in Q3 2024. This improvement reflects the success of government policies in empowering women and encouraging their participation in the labor market.
Government Policies and Increased Saudization
Continued government spending on developmental projects in the non-oil sector has helped create new job opportunities, especially in the private sector, which has seen an increase in the number of Saudi employees. Saudization programs have also been a crucial part of government policies, pushing companies to hire Saudi citizens instead of foreign labor.
Women’s Participation in the Workforce
The labor force participation rate for Saudis also increased in Q3, reaching 51.5%, driven by a significant rise in women’s participation, which stood at 36.2%. This exceeds the previous Vision 2030 target of 30% and approaches the new target of 40% set by Crown Prince Mohammed bin Salman.
Future Outlook
Unemployment is expected to continue declining gradually in the future, especially with economic policies supporting non-oil sector growth and increased women’s participation in the labor market. Thanks to these policies, Saudi Arabia may achieve its economic goals early by 2024, surpassing the targets set in Vision 2030.