Saudi Arabia's Unemployment Rate Declines To 2.8% In First Quarter Of 2025

The General Authority for Statistics (GASTAT) reported that the unemployment rate in Saudi Arabia, including both Saudis and non-Saudis, was 2.8% in the first quarter of 2025. The overall labour force participation rate reached 68.2%, with a notable increase among Saudis to 51.3% compared to the last quarter of 2024.

Among Saudi males, the labour force participation rate rose to 66.4%, while their unemployment rate decreased to 4%. These figures indicate a positive trend in employment opportunities for men in the country. For working-age Saudis aged between 25 and 54, the employment-to-population ratio was recorded at 65.9%, and their labour force participation rate increased to 69.6%. The unemployment rate for this group fell to 5.4%.

Efforts to empower women have shown success, as evidenced by an increase in women's economic participation and their contribution to sustainable development. The labour force participation rate among Saudi females climbed to 36.3%, with their unemployment rate dropping to 10.5% from the previous quarter.

The employment-to-population ratio for young Saudi women aged 15–24 rose to 14.6%, while their labour force participation increased to 18.4%. In contrast, young Saudi males in the same age bracket saw a decrease in their employment-to-population ratio to 29.2% and a decline in their labour force participation rate to 33%. However, their unemployment rate improved, dropping to 11.6% compared to Q4 of 2024.

The unemployment rate among Saudis reached its lowest historical level at 6.3% in Q1 of 2025. This decline reflects the effectiveness of Saudi Arabia's labour market policies and its growing ability to offer economic opportunities for its citizens.

For Saudis aged 55 and older, there was a decrease in both unemployment and labour force participation rates compared to Q4 of 2024. The reduction in these rates highlights ongoing improvements within the country's job market.

Job Search Methods

According to GASTAT, direct applications were the most common job search method used by job seekers, accounting for 75.8%. The national unified employment platform (Jadarat) was utilised by 74.6% of those seeking jobs, while posting or updating CVs on business-related social media platforms was reported by 64.5% of job seekers.

The decline in the unemployment rate among Saudi women by over eleven percentage points since 2021 is significant, settling at a current rate of 10.5%. This improvement underscores the expanding capacity of the Saudi labour market supported by strong employment and development policies.

With inputs from SPA