RIYADH — Saudi Arabia’s unemployment rate experienced a continued decline in the third quarter of 2025, falling to 3.4 percent overall, according to data released Monday by the General Authority for Statistics (GASTAT). This represents a 0.3 percentage point decrease year-over-year, signaling positive momentum in the Kingdom’s labor market. The report highlights the impact of ongoing economic diversification efforts and initiatives aimed at bolstering national workforce participation.
The decline in unemployment was observed across both the Saudi and non-Saudi populations. GASTAT’s report covers the period ending September 30, 2025, and provides a comprehensive overview of the Kingdom’s labor force dynamics. The data is crucial for policymakers as they assess the effectiveness of Vision 2030 programs designed to create jobs and reduce reliance on foreign workers.
Saudi Arabia’s Declining Unemployment Trends
The overall labor force participation rate reached 66.9 percent, an annual increase of 0.3 percentage points. This expansion of the economic activity base is a key indicator of the Kingdom’s progress toward its economic goals. The report indicates a growing number of individuals are actively seeking and obtaining employment opportunities.
National Workforce Improvements
Specifically, the unemployment rate among Saudi nationals decreased to 7.5 percent, a 0.3 percentage point annual reduction. While this represents a positive trend, there was a slight quarterly increase of 0.7 percentage points, suggesting some short-term fluctuations within the broader improvement. This suggests that while long-term trends are favorable, ongoing monitoring is necessary.
Participation rates among Saudi men rose to 64.3 percent, demonstrating sustained demand for national labor. Meanwhile, Saudi women continued to increase their presence in the labor market, benefiting from expanding and diversifying job options. This aligns with the Kingdom’s efforts to empower women and increase their economic contribution.
Youth Labor Market Participation
The report also highlighted strong labor force participation among young Saudis aged 15-24. Both young men and women demonstrated a high desire to enter the job market and gain early experience. This enthusiasm is being supported by increased investment in training and qualification programs, as well as initiatives to better align education with employment needs. These programs are designed to equip young Saudis with the skills needed for in-demand jobs.
Additionally, the data revealed that unemployed Saudis are actively engaged in their job search, utilizing an average of four different methods. Direct applications to employers were the most prevalent approach, used by 73.3 percent of job seekers. Following this, the national Jadarat platform (59.4 percent) and updating resumes on business platforms (50.5 percent) were also frequently employed, demonstrating a growing adoption of modern recruitment tools.
The report also showed a high degree of flexibility among job seekers. An impressive 95.3 percent of unemployed Saudis expressed willingness to work in the private sector. Furthermore, large percentages indicated acceptance of full working hours and a commute of up to one hour, enhancing the potential for matching labor supply with demand. This willingness to compromise on location and sector is a positive sign for employers.
The Kingdom’s focus on diversifying its economy, moving away from a reliance on oil, is a key driver of these positive trends. Investments in sectors like tourism, technology, and manufacturing are creating new job opportunities for both Saudi nationals and expatriates. The government’s initiatives to attract foreign investment are also contributing to economic growth and job creation. Job creation is a central pillar of Vision 2030.
However, challenges remain. The slight quarterly increase in Saudi national unemployment suggests that economic fluctuations can still impact the labor market. Continued investment in skills development and targeted employment programs will be crucial to sustaining the positive momentum. The availability of skilled labor remains a key consideration for businesses operating in the Kingdom.
Looking ahead, GASTAT is expected to release the fourth-quarter 2025 labor market data in early 2026. Analysts will be closely watching for continued declines in the unemployment rate and further increases in labor force participation. The impact of ongoing economic reforms and the effectiveness of new employment initiatives will be key factors to monitor. The long-term sustainability of these improvements will depend on the Kingdom’s ability to navigate global economic uncertainties and maintain its commitment to economic diversification.
