The overall unemployment rate, which includes expatriate workers, also fell to 3.3 percent in Q2, down from 4.1 percent in the same period in 2023, as reported by the General Authority for Statistics.

With over 60 percent of Saudi citizens under the age of 30, job creation—particularly in the private sector—remains a core focus of Crown Prince Mohammed Bin Salman’s Vision 2030 plan, which aims to diversify the economy beyond oil.

The latest data reveals that 95.5 percent of unemployed Saudi citizens are open to private-sector employment. Recent labor market reforms and social changes have also led to an increase in female workforce participation.

Unemployment among Saudi women dropped to 12.8 percent in Q2, down from 14.2 percent in Q1, with female labor participation surpassing the Vision 2030 target of 30 percent, standing at 35.4 percent in Q2.

However, the overall labor force participation rate for Saudi citizens remained steady at 50.8 percent, a figure similar to the previous year.

In a recent report, the International Monetary Fund (IMF) acknowledged the positive impact of labor market reforms but emphasized that more needs to be done to increase workforce participation and reduce wage gaps.