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Saudi Arabia’s unemployment rate holds steady at 3.5% in Q1
The unemployment rate for women rose despite increased participation in the labor force.
According to the latest General Authority for Statistics (GASTAT) data, Saudi Arabia’s labor market shows signs of progress. In the first quarter of 2024, the unemployment rate was 3.5%. This represents a yearly decline of 0.8 percentage points, according to the GASTAT.
The unemployment rate for Saudi nationals also decreased slightly, dropping to 7.6% from 7.8% in the previous quarter. This builds on a year-on-year decline of 1.1 percentage points.Â
Notably, labor force participation among Saudis increased by 1.0 percentage points to reach 51.4%, indicating a growing willingness to enter the workforce.
The data reveals a significant improvement for Saudi men. The employment-to-population ratio climbed to 63.6%, while the unemployment rate fell to 4.2%, suggesting a successful integration of men into the job market.
However, the picture for Saudi women is more nuanced. While the labor force participation rate and employment-to-population ratio increased, the unemployment rate for women also rose slightly. This highlights the need for continued efforts to address challenges faced by female job seekers.
The GASTAT survey revealed a strong willingness among unemployed Saudis to work in the private sector. Over 95% of unemployed citizens expressed openness to private sector opportunities, suggesting a potential shift away from traditional public sector preferences. Additionally, most are prepared for full-time work and willing to commute for extended periods.
The data also sheds light on job search methods. The most prevalent approach remains relying on personal networks, with 87.5% of unemployed Saudis seeking aid from friends and relatives. This underscores the importance of effective job placement programs and outreach initiatives.