Saudi Women Drive Employment Surge, Unemployment Drops to 7.5%

Saudi Arabia’s unemployment rate fell to 7.5% in the third quarter of 2025, with a 0.3 percentage point reduction compared to the same period in 2024. This improvement comes alongside major progress in female workforce participation throughout the kingdom.

The unemployment figures show Saudi males at roughly 5%, while Saudi females recorded 12.1% – a notable 1.5 percentage point drop from the previous year. The employment rate for Saudi women climbed to 29.7%, showing a 3 percentage point gain in the last five years[-2]. When combining both Saudi and non-Saudi workers, the total labor force participation hit 66.9% in Q3 2025, rising 0.3 percentage points from Q3 2024.

Young Saudi women aged 15 to 24 showed remarkable progress with their workforce participation jumping 2% to reach 17.6% in the third quarter of 2025. But this age group also saw their unemployment rate climb by 3.6% to 24.2% compared to the previous quarter. These numbers reveal major changes in Saudi Arabia’s job market as the country pushes forward with its economic reforms.

Saudi unemployment rate drops to 7.5% in Q3 2025

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Saudi Arabia’s employment landscape showed notable changes during the third quarter of 2025, based on GASTAT’s latest data. The unemployment rate among Saudi nationals dropped to 7.5% year-over-year, though it rose by 0.7 percentage points from Q2 2025 [8,9].

Both Saudi nationals and expatriates saw their combined unemployment rate reach 3.4%, which was 0.3 percentage points lower than the same period in 2024. Non-Saudi residents maintained a substantially lower unemployment rate at 1.4%.

Young Saudi males aged 15-24 faced greater employment challenges with a 13.6% unemployment rate. Saudi women with short-cycle tertiary education experienced the highest jobless rate at 14.6%, while Saudi men with early childhood education backgrounds recorded 9.6%.

The workforce showed strong interest in employment opportunities. Most unemployed Saudis (95.3%) wanted to participate in private-sector jobs. The survey revealed that 61.0% of women and 42.7% of men would commute up to an hour for work. Additionally, 70.6% of women and 86.7% of men expressed readiness to work eight or more hours daily.

Saudi Arabia’s employment-to-population ratio decreased by 0.6 percentage points quarterly to 45.3%. Notwithstanding that, economic forecasts remain optimistic, with experts predicting unemployment rates could reach 2.6% by 2026.

Female workforce participation drives labor market gains

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Saudi women are reshaping their country’s economy with remarkable progress in the job market. Recent data shows female unemployment dropped to 12.1% in Q3 2025, a 1.5 percentage point reduction from the previous year. Saudi women’s employment-to-population ratio reached 29.7%, showing a three-percentage-point rise in the last five years.

The numbers tell an impressive story. Female participation in the workforce jumped from 23% in 2019 to 34.5% in 2023, and later hit 36.3% in Q1 2025. This is a big deal as it means that the original Vision 2030 target of 30% has already been surpassed. Young Saudi women between 15-24 years have also made strides, with their participation growing by 2% to reach 17.6% in Q3 2025.

Government programs have propelled this development significantly. The Wusool Program helps working women by covering up to 80% of their transportation expenses in the private sector. This initiative has helped more than 307,000 women overcome commuting challenges. The Qurrah program supports working mothers with childcare services and monthly subsidies of up to 800 Saudi riyals per child.

These changes have brought remarkable economic results. Women’s businesses now account for 45% of SMEs. They make up 28% of the technology sector and represent 36.8% of STEM graduates. Studies suggest that achieving gender equality could boost Saudi Arabia’s GDP by approximately 50%, fundamentally changing the economy through greater diversity and state-of-the-art solutions.

Labor market indicators reflect structural transformation

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Saudi Arabia’s labor market shows deep changes beyond simple unemployment numbers. The country’s working population reached 64.6% in Q3 2025, up 0.5 percentage points from last year. This number shows how many working-age people have jobs and points to available economic chances.

Saudis between 25-54 years managed to keep steady numbers with 66.9% participation, despite small quarterly changes. Young Saudis face tougher challenges. Young women’s unemployment sits at 24.2% while young men’s rate is 13.6%.

Different regions tell different stories across the Kingdom. The Northern Borders tops unemployment figures at 6.7%, with Asir following at 5.3%. Riyadh and Eastern Province paint a brighter picture. Their rates stand at just 2.4% and 2.5%.

Saudi job seekers have adapted their search methods. They now use about 5 different ways to look for work. Most people ask friends and family (86.9%), while many also apply directly to employers (73.9%).

The General Authority for Statistics points out these numbers reflect the nation’s ongoing work toward a balanced and sustainable job market that lines up with Vision 2030’s goals.

Saudi Arabia’s labor market shows impressive progress in reaching its economic diversification goals. The drop in unemployment to 7.5% proves that national workforce development strategies work well. Women’s participation emerges as the driving force behind this change. Women now join the workforce like never before and have become 8-year-old contributors in sectors of all types.

The government’s programs that target working women’s barriers have proven highly effective. Transportation subsidies through Wusool and childcare support via Qurrah help solve real problems that many women face at work. These focused programs show Saudi Arabia’s steadfast dedication to removing obstacles that used to hold back women’s economic participation.

Some parts of the Kingdom still lag behind others. The Northern Borders region faces higher unemployment than economic hubs like Riyadh. Young people’s employment remains a challenge despite the positive overall trends. Young Saudi women’s 24.2% unemployment rate needs more attention.

Saudi Arabia has gone beyond its Vision 2030 goals for women in the workforce. This is a big deal as it means that even more economic benefits could come as women step into professional roles. Women’s strong presence in technology, STEM fields, and small business ownership signals fundamental economic changes.

The future looks bright for Saudi Arabia to keep this momentum going. Their all-encompassing approach to developing the labor market, along with specific programs for underrepresented groups, are the foundations for lasting employment growth. The country still faces some hurdles, especially with youth and certain regions, but these economic transformation efforts clearly deliver real results.