![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/08\/p12_youssef_saidi.png\")
Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association. (Supplied)<\/p>\n
\n\tJEDDAH: Saudi Arabia\u2019s labor market is transforming, with unemployment among the Kingdom\u2019s nationals hitting record lows and the nation raising its Vision 2030 employment targets to reflect this accelerated progress.<\/p>\n
\n\tMinister of Human Resources and Social Development Ahmed Al-Rajhi announced during the Budget Forum 2024 that Saudi Arabia has revised its unemployment target for nationals to 5 percent by 2030, down from the previous goal of 7 percent.<\/p>\n
\n\t\u201cThe unemployment rate among Saudis was 12.8 percent in 2018, and today it has dropped to 7.1 percent. The Vision 2030 target was to reduce Saudi unemployment to 7 percent by 2030, a milestone we have achieved six years ahead of schedule,\u201d Al-Rajhi said at the time.<\/p>\n
\n\tHe added that for this reason, Crown Prince Mohammed bin Salman \u201cdirected a review of that target, and now we have a new ambition: to reduce the unemployment rate among Saudis to 5 percent by 2030.\u201d<\/p>\n
\t\t\t\tFASTFACT\n<\/p>\n
\t\t\t\t\t\u00a0<\/p>\n
\n\t\t\t\t\tA new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.<\/p>\n
\n\tAccording to the latest data from the General Authority for Statistics, known as GASTAT, unemployment among Saudi nationals fell further to 6.3 percent in the first quarter of 2025 \u2014 the lowest level on record.<\/p>\n
\n\tLabor force participation among Saudis rose to 51.3 percent, with notable gains among women and core working-age citizens.<\/p>\n
\n\tWomen\u2019s economic participation surpasses Vision 2030 target<\/p>\n
\n\tA significant achievement highlighted by Al-Rajhi was the surge in the participation of Saudi women in the workforce, adding: \u201cThe economic participation rate of females has reached 35 percent, exceeding the Vision 2030 target of 30 percent by 2030.\u201d<\/p>\n
\n\tGASTAT\u2019s first quarter 2025 data supports this trajectory, showing a female labor force participation rate of 36.3 percent, while the unemployment rate among Saudi women declined to 10.5 percent.\u00a0<\/p>\n
\n\tAmong young Saudi women aged 15 to 24, participation rose to 18.4 percent, and the employment-to-population ratio climbed to 14.6 percent.<\/p>\n
Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association. (Supplied)<\/p>\n
\n\tYoussef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association, told Arab News: \u201cTo sustain and enhance this progress, it is crucial to implement supportive policies that encourage women\u2019s entrepreneurship and provide access to resources and training opportunities.\u201d<\/p>\n
\n\tHe added that fostering collaboration between the government and private sectors can create a robust ecosystem that supports female entrepreneurs, addressing barriers and promoting sustainable development.<\/p>\n
\n\tYouth employment progresses, challenges remain<\/p>\n
\n\tWhile youth unemployment is declining, participation rates are mixed. GASTAT data shows the unemployment rate among Saudi males aged 15 to 24 fell to 11.6 percent, but labor force participation dropped to 33 percent, and their employment-to-population ratio declined to 29.2 percent.<\/p>\n
\n\tSpeaking to Arab News, Mansoor Ahmed, an independent economic adviser, said: \u201cDespite overall progress, unemployment among young Saudis aged 15\u201324 remains higher than the national average.\u201d\u00a0<\/p>\n
\n\tHe added that addressing this issue requires targeted policies and tailored employment programs to better integrate youth into the labor market.<\/p>\n
\n\tVision 2030 reforms driving new opportunities<\/p>\n
\n\tSaudi Arabia\u2019s success in lowering unemployment stems from a range of labor reforms and national transformation initiatives. Ahmed said: \u201cThis achievement has been underpinned by robust economic policies, strategic government initiatives, and sustained labor market reforms.\u201d<\/p>\n
\n\tHe cited key enablers such as the Human Capability Development Program, the sharp decline in female unemployment \u2014 from 31.7 percent in 2018 to 10.5 percent in 2025 \u2014 and giga-projects such as NEOM, Qiddiya, Red Sea Project, and Diriyah Gate, which are entering high-employment phases.\u00a0<\/p>\n
\n\tSector-specific Saudization policies in retail, consulting, and aviation, as well as legal services, and technology, have also played a role.<\/p>\n
\n\tReflecting on the main challenges facing the country, Ahmed flagged youth employment volatility, noting that \u201cdespite overall progress, unemployment among young Saudis, aged 15\u201324, remains higher than the national average.\u201d<\/p>\n
\n\tHe also highlighted public-private sector wage disparities, stating that many private sector positions continue to offer lower wages and benefits compared to public sector roles, dampening interest among some Saudi job seekers. \u201cNarrowing this gap will be essential to sustain private sector employment growth,\u201d he said.<\/p>\n
\n\tEducation\u2013labor alignment key to 5 percent goal<\/p>\n
\n\tThe Ministry of Human Resources and Social Development has implemented 84 percent of the Labor Market Strategy over the past four years, creating 300,000 jobs in specialized professions such as engineering, accounting, pharmacy, and radiology.<\/p>\n
\n\tOne standout initiative is the Waad National Training Program, launched in partnership with the private sector. It has provided over 1.3 million training opportunities, equipping Saudis with practical skills aligned to labor market needs.<\/p>\n
\n\tThis initiative exemplifies how targeted training and public-private collaboration drive employment outcomes, helping thousands transition into specialized and emerging sectors.<\/p>\n
\n\tTo support these changes, the ministry has also modernized labor regulations, amending more than 38 articles to enhance workforce flexibility and protection. New insurance products, including domestic worker and labor market insurance, have been introduced to safeguard employers and employees.<\/p>\n
\n\t\u201cRegarding beneficiary satisfaction: previously, the ministry in the labor sector received 60,000 visitors to its branches across the Kingdom each month,\u201d Al-Rajhi said. He added that after launching automation services, this number has dropped to 3,000.<\/p>\n
\n\tGASTAT data shows 75.8 percent of job seekers approached employers directly, 74.6 percent used the national employment platform Jadarat, and 64.5 percent updated their resumes on professional social media \u2014 reflecting a shift toward digital engagement and more efficient job searches.<\/p>\n
\n\tAl-Rajhi noted that a new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.<\/p>\n
\n\tFuture workforce focus<\/p>\n
\n\tAhmed emphasized that further progress requires a holistic approach. He said that encouraging greater private sector employment of Saudis beyond Saudization policies demands a comprehensive strategy.<\/p>\n
\n\t\u201cA particularly critical factor will be improving the alignment between education outcomes and labor market requirements, ensuring that graduates possess the skills and competencies demanded by the private sector,\u201d he said.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/08\/p12_mansour_ahmed.png\")
Mansoor Ahmed, an independent economic advisor. (Supplied)<\/p>\n
\n\tHe added that by pursuing this integrated approach, saying: \u201cThe Kingdom can foster a virtuous cycle where private firms are driven to hire, develop, and retain more Saudi nationals.\u201d<\/p>\n
\n\tSaidi echoed the need for stronger integration between education and labor market outcomes, stressing the importance of incorporating emerging technologies into curricula so students acquire relevant future skills.<\/p>\n
\n\tHe added: \u201cCollaboration with industry leaders can provide practical training opportunities, bridging the gap between education and employment and ensuring that graduates are well-prepared for the demands of the modern workforce.\u201d<\/p>\n
\n\tThe economist emphasized the need for a long-term cultural shift in education to promote continuous learning and adaptability. \u201cThis can be achieved by incorporating entrepreneurial education and sustainability topics into the curricula, promoting awareness and skills necessary for the evolving economic landscape,\u201d he added.<\/p>\n
\n\tUnder this direction, the country has recently announced it will integrate artificial intelligence education throughout its public school system beginning in the coming academic year.<\/p>\n
\n\tHigh-potential sectors for Saudi workers<\/p>\n
\n\tCommenting on sectors with strong potential to absorb more Saudi workers soon, Ahmed pointed to construction and infrastructure; healthcare \u2014 which he said will require more than 30,000 new hospital beds by 2030; and tourism and hospitality, especially in customer-facing and management roles.<\/p>\n
\n\tiInformation and communication technology; artificial intelligence; and retail were also highlighted, as well as logistics; renewable energy; and environmental technologies.<\/p>\n
\n\tThese sectors, he added, are driven by Vision 2030 priorities, economic diversification efforts, and proactive government initiatives. To align with this evolving landscape, he noted, Saudi Arabia must strengthen its focus on evidence-based research, innovation, and targeted workforce development.<\/p>\n
\n\t\u201cThis transition aims to address the persistent mismatch between graduates\u2019 qualifications and labor market requirements, ensuring the national workforce is equipped with the skills and expertise needed to thrive in a dynamic, diversified economy,\u201d Ahmed said.
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