Saudi Arabia’s unemployment rate declined by 0.3 percentage points to 7.2 percent in the fourth quarter of 2025, moving closer to the Vision 2030 target of 7 percent, while female unemployment fell to a record low.

Data cited by Al Eqtisadiah shows the rate has fluctuated around the target over the past year, reaching a low of 6.3 percent before rising to 7.5 percent in the third quarter and easing again toward the end of the year.

The improvement reflects continued economic expansion, particularly in the non-oil sector, which has supported private sector job creation alongside government spending and policy support. Efforts to increase female workforce participation and localization initiatives have also played a key role in the decline.

Female unemployment dropped to 10.3 percent, its lowest level since data collection began in 1999, while male unemployment edged up slightly to 5.6 percent. Female labor force participation rose to 34.5 percent, remaining above the Vision 2030 target, while male participation reached 64.7 percent.

Overall unemployment, including non-Saudis, increased marginally to 3.5 percent, driven by a rise in expatriate unemployment.

Economic growth remained strong, with GDP expanding 5 percent year on year in the fourth quarter, supported by a rebound in oil activity and steady non-oil growth of 4.3 percent.

Employment gains have been particularly notable among women. Private-sector jobs for Saudi women have more than doubled since the launch of Vision 2030, surpassing 1 million for the first time and accounting for the majority of new roles created for citizens. Total Saudi employment in the private sector reached a record 2.55 million.

These gains reflect a series of labor and social reforms, including expanded employment opportunities, wage equality measures, and initiatives supporting childcare, training, and mobility, as well as incentives for private-sector hiring.