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- 黑料社区 has revised its unemployment target for nationals to 5 percent by 2030
JEDDAH: 黑料社区鈥檚 labor market is transforming, with unemployment among the Kingdom鈥檚 nationals hitting record lows and the nation raising its Vision 2030 employment targets to reflect this accelerated progress.
Minister of Human Resources and Social Development Ahmed Al-Rajhi announced during the Budget Forum 2024 that 黑料社区 has revised its unemployment target for nationals to 5 percent by 2030, down from the previous goal of 7 percent.
鈥淭he unemployment rate among Saudis was 12.8 percent in 2018, and today it has dropped to 7.1 percent. The Vision 2030 target was to reduce Saudi unemployment to 7 percent by 2030, a milestone we have achieved six years ahead of schedule,鈥� Al-Rajhi said at the time.
He added that for this reason, Crown Prince Mohammed bin Salman 鈥渄irected a review of that target, and now we have a new ambition: to reduce the unemployment rate among Saudis to 5 percent by 2030.鈥�
FASTFACT
A new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.
According to the latest data from the General Authority for Statistics, known as GASTAT, unemployment among Saudi nationals fell further to 6.3 percent in the first quarter of 2025 鈥� the lowest level on record.
Labor force participation among Saudis rose to 51.3 percent, with notable gains among women and core working-age citizens.
Women鈥檚 economic participation surpasses Vision 2030 target
A significant achievement highlighted by Al-Rajhi was the surge in the participation of Saudi women in the workforce, adding: 鈥淭he economic participation rate of females has reached 35 percent, exceeding the Vision 2030 target of 30 percent by 2030.鈥�
GASTAT鈥檚 first quarter 2025 data supports this trajectory, showing a female labor force participation rate of 36.3 percent, while the unemployment rate among Saudi women declined to 10.5 percent.
Among young Saudi women aged 15 to 24, participation rose to 18.4 percent, and the employment-to-population ratio climbed to 14.6 percent.
Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association. (Supplied)
Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association, told Arab News: 鈥淭o sustain and enhance this progress, it is crucial to implement supportive policies that encourage women鈥檚 entrepreneurship and provide access to resources and training opportunities.鈥�
He added that fostering collaboration between the government and private sectors can create a robust ecosystem that supports female entrepreneurs, addressing barriers and promoting sustainable development.
Youth employment progresses, challenges remain
While youth unemployment is declining, participation rates are mixed. GASTAT data shows the unemployment rate among Saudi males aged 15 to 24 fell to 11.6 percent, but labor force participation dropped to 33 percent, and their employment-to-population ratio declined to 29.2 percent.
Speaking to Arab News, Mansoor Ahmed, an independent economic adviser, said: 鈥淒espite overall progress, unemployment among young Saudis aged 15鈥�24 remains higher than the national average.鈥�
He added that addressing this issue requires targeted policies and tailored employment programs to better integrate youth into the labor market.
Vision 2030 reforms driving new opportunities
黑料社区鈥檚 success in lowering unemployment stems from a range of labor reforms and national transformation initiatives. Ahmed said: 鈥淭his achievement has been underpinned by robust economic policies, strategic government initiatives, and sustained labor market reforms.鈥�
He cited key enablers such as the Human Capability Development Program, the sharp decline in female unemployment 鈥� from 31.7 percent in 2018 to 10.5 percent in 2025 鈥� and giga-projects such as NEOM, Qiddiya, Red Sea Project, and Diriyah Gate, which are entering high-employment phases.
Sector-specific Saudization policies in retail, consulting, and aviation, as well as legal services, and technology, have also played a role.
Reflecting on the main challenges facing the country, Ahmed flagged youth employment volatility, noting that 鈥渄espite overall progress, unemployment among young Saudis, aged 15鈥�24, remains higher than the national average.鈥�
He also highlighted public-private sector wage disparities, stating that many private sector positions continue to offer lower wages and benefits compared to public sector roles, dampening interest among some Saudi job seekers. 鈥淣arrowing this gap will be essential to sustain private sector employment growth,鈥� he said.
Education鈥搇abor alignment key to 5 percent goal
The Ministry of Human Resources and Social Development has implemented 84 percent of the Labor Market Strategy over the past four years, creating 300,000 jobs in specialized professions such as engineering, accounting, pharmacy, and radiology.
One standout initiative is the Waad National Training Program, launched in partnership with the private sector. It has provided over 1.3 million training opportunities, equipping Saudis with practical skills aligned to labor market needs.
This initiative exemplifies how targeted training and public-private collaboration drive employment outcomes, helping thousands transition into specialized and emerging sectors.
To support these changes, the ministry has also modernized labor regulations, amending more than 38 articles to enhance workforce flexibility and protection. New insurance products, including domestic worker and labor market insurance, have been introduced to safeguard employers and employees.
鈥淩egarding beneficiary satisfaction: previously, the ministry in the labor sector received 60,000 visitors to its branches across the Kingdom each month,鈥� Al-Rajhi said. He added that after launching automation services, this number has dropped to 3,000.
GASTAT data shows 75.8 percent of job seekers approached employers directly, 74.6 percent used the national employment platform Jadarat, and 64.5 percent updated their resumes on professional social media 鈥� reflecting a shift toward digital engagement and more efficient job searches.
Al-Rajhi noted that a new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.
Future workforce focus
Ahmed emphasized that further progress requires a holistic approach. He said that encouraging greater private sector employment of Saudis beyond Saudization policies demands a comprehensive strategy.
鈥淎 particularly critical factor will be improving the alignment between education outcomes and labor market requirements, ensuring that graduates possess the skills and competencies demanded by the private sector,鈥� he said.
Mansoor Ahmed, an independent economic advisor. (Supplied)
He added that by pursuing this integrated approach, saying: 鈥淭he Kingdom can foster a virtuous cycle where private firms are driven to hire, develop, and retain more Saudi nationals.鈥�
Saidi echoed the need for stronger integration between education and labor market outcomes, stressing the importance of incorporating emerging technologies into curricula so students acquire relevant future skills.
He added: 鈥淐ollaboration with industry leaders can provide practical training opportunities, bridging the gap between education and employment and ensuring that graduates are well-prepared for the demands of the modern workforce.鈥�
The economist emphasized the need for a long-term cultural shift in education to promote continuous learning and adaptability. 鈥淭his can be achieved by incorporating entrepreneurial education and sustainability topics into the curricula, promoting awareness and skills necessary for the evolving economic landscape,鈥� he added.
Under this direction, the country has recently announced it will integrate artificial intelligence education throughout its public school system beginning in the coming academic year.
High-potential sectors for Saudi workers
Commenting on sectors with strong potential to absorb more Saudi workers soon, Ahmed pointed to construction and infrastructure; healthcare 鈥� which he said will require more than 30,000 new hospital beds by 2030; and tourism and hospitality, especially in customer-facing and management roles.
iInformation and communication technology; artificial intelligence; and retail were also highlighted, as well as logistics; renewable energy; and environmental technologies.
These sectors, he added, are driven by Vision 2030 priorities, economic diversification efforts, and proactive government initiatives. To align with this evolving landscape, he noted, 黑料社区 must strengthen its focus on evidence-based research, innovation, and targeted workforce development.
鈥淭his transition aims to address the persistent mismatch between graduates鈥� qualifications and labor market requirements, ensuring the national workforce is equipped with the skills and expertise needed to thrive in a dynamic, diversified economy,鈥� Ahmed said.