Islamabad, Sep 30: Saudi Unemployment Falls to 7.1% in Q2 2024
Unemployment in Saudi Arabia dropped to 7.1% in the second quarter of 2024, down from 7.6% in the previous quarter and 8.5% a year ago, according to government data.
The overall unemployment rate, including expatriates, decreased to 3.3% from 4.1% in Q2 of 2023, as reported by the General Authority for Statistics.
The decrease in unemployment aligns with Crown Prince Mohammed bin Salman’s Vision 2030 initiative, which focuses on job creation and diversifying the economy away from oil.
A notable development has been the rise in women’s participation in the workforce, with female unemployment dropping to 12.8% in Q2 from 14.2% in Q1. Female labor force participation has exceeded the 30% target for 2030, reaching 35.4%.
However, the overall labor force participation rate for Saudi citizens remains just above 50%, reflecting a challenge in sustaining significant growth in participation.
The IMF noted in a recent report that while labor market reforms are helping, further efforts are needed to boost participation and close wage gaps.
The data shows a significant recovery from the peak of the COVID-19 pandemic when Saudi unemployment hit 15.4% in Q2 2020.
Since then, the rate has steadily declined as the economy rebounded from the impact of the pandemic and lower oil prices.
