Arab News: Saudi Arabia’s overall unemployment rate fell to 3 percent in the second quarter of the year, an annual drop of 0.2 percentage points as the economy pushes ahead with diversification and job creation.
The rate, which covers Saudis and non-Saudis, also represented a 0.1 percentage point fall from the previous quarter, according to the General Authority for Statistics.
The overall labor force participation rate was unchanged at 67.2 percent, but rose 1 percentage point from a year earlier.
Saudi Arabia has already achieved its Vision 2030 target of reducing the unemployment rate among Saudis to 7 percent and is now targeting a rate of 5 percent by the end of the decade, while continuing to focus on increasing women’s participation in the workforce, a key pillar of its labor market reforms.
In its latest report, GASTAT stated: “The unemployment rate among Saudis reached 6.5 percent in the second quarter of 2026, increasing by 0.1 percentage points compared to the previous quarter, while decreasing by 0.3 percentage points year-on-year compared to the second quarter of 2025.”
The employment-to-population ratio for Saudis fell to 45.5 percent, down 0.3 percentage points from the prior quarter and 0.4 percentage points year on year.
The Saudi labor force participation rate declined to 48.7 percent, a drop of 0.3 percentage points quarter on quarter and 0.5 percentage points from the same period of the previous year.
Anil Singh, chief business officer at TASC Outsourcing, told Arab News that the decline in unemployment reflects the growing range of employment opportunities being created across the economy.
“Economic diversification under Vision 2030 is driving demand across sectors, including technology, tourism, hospitality, logistics, healthcare, and professional services, while continued investment in major projects is creating new roles and career pathways,” he said.
Female unemployment
Unemployment among Saudi females increased by 0.6 percentage points to 9.6 percent in the second quarter, while their labor force participation rate slipped 0.2 percentage points to 33.7 percent.
“A marginal upward movement in female unemployment comes straight after the lowest female unemployment rate on record, and is well within the range you would expect in a market growing this fast,” said Amr Kazimi, principal at Arthur D. Little.
He said the key signal is that demand among women to work continues to rise, and the focus should be on converting that demand into jobs through flexible work arrangements, better childcare and transport, and greater access to mid-level and technical roles.
Among Saudi males, the unemployment rate decreased by 0.1 percentage points to 4.8 percent.
Private-sector demand
The latest data also showed strong willingness among unemployed Saudis to take private-sector jobs, with 96.7 percent saying they would accept an offer from a private company.
Among unemployed Saudi women, 62.2 percent said they would accept a commute of up to one hour, compared with 46.7 percent of men. Meanwhile, 70 percent of unemployed women and 82.9 percent of men said they would accept working eight hours or more per day.
Singh described the willingness to work in the private sector as an “encouraging indicator of the growing alignment between jobseekers and the private sector,” adding that the next step is strengthening mechanisms that connect available talent with the right opportunities.
https://www.arabnews.com/business/saudi-arabia-unemployment-falls-to-3-as-labor-market-expands-3003872
