Saudi Arabia Reports Decrease In Unemployment To 4.4% In Fourth Quarter Of 2023

Riyadh, SPA – The General Authority for Statistics (GASTAT) has recently unveiled its Labor Market Statistics for the fourth quarter of 2023, revealing a notable decrease in the overall unemployment rate in Saudi Arabia to 4.4%, a reduction of 0.7 percentage points from the previous quarter. This decline is seen across both Saudi nationals and non-Saudis residing in the Kingdom. Specifically, the unemployment rate among Saudis has fallen to 7.7% in Q4/2023, marking a decrease of 0.9 percentage points compared to Q3/2023.

The data indicates a slight contraction in the Saudi labor force by 0.3 percentage points from the third to the fourth quarter of 2023, settling at 51.3%. However, there's a silver lining as the employment-to-population ratio among Saudis saw an uptick of 0.2 percentage points over the same period, reaching 47.4%. Notably, Saudi women have made significant strides in employment, with their employment-to-population ratio increasing by 0.6 percentage points to reach 30.7%.

Despite these positive trends, there was a slight decrease in the participation rate by 0.4 percentage points, bringing it to 35.5%. Nonetheless, the unemployment rate among Saudi women showed a substantial decrease of 2.6 percentage points, landing at 13.7% compared to the previous quarter of 2023. On the other hand, Saudi men experienced a minor decline in both the employment-to-population ratio and the labor force participation rate by 0.2 percentage points, reaching 63.5% and 66.6%, respectively.

GASTAT's findings are based on comprehensive household surveys conducted across various regions of the Kingdom. These surveys are designed to collect electronic information from a representative sample of households, focusing on individuals within the working-age population residing within Saudi Arabia's borders. Through this meticulous data collection process, GASTAT is able to generate accurate estimates and calculate crucial labor market indicators such as unemployment rates and labor force participation rates.

This latest report from GASTAT provides valuable insights into the dynamics of Saudi Arabia's labor market as it moves towards the end of 2023. The decrease in unemployment rates and adjustments in labor force participation highlight ongoing changes within the Kingdom's economy and its workforce composition.

With inputs from SPA