Vision 2030 update: Saudi Arabia cut unemployment target up to 5% among record job market gains
TL; Dr:
- Saudi Arabia revised its unemployment target up to 5%, 7% between record-less national unemployment and 2.8% across the country.
- Women’s participation as a women’s workforce participation doubled, which was less than 20% five years ago.
- Private sector and skill growth: 12% increase in Saudi employment in private sector and extended skill training signal long -term job market change.
In a historic step reflecting rapid socio-economic changes, Saudi Arabia has officially revised its unemployment target below the previous targets under Vision 2030. The original 7% milestone was achieved six years ago from the schedule, falling to that level by the end of 2024. This initial achievement inspired the authorities to set more ambitious targets of 5% by 2030. This comes when the Kingdom improves the historic labor market, including a dramatic decline of 7% in national unemployment by the end of 2024 and the participation of the workforce between women and youth.Supported by the official data of the General Authority for the Statistics and in its 2025 report supported by the International Monetary Fund (IMF), the shift marks a strategic axis, only from employment generation to sustainable, inclusive and high quality job production.
Major Labor Market Highlights (by 2024–2025):
Unemployment rate falls largely
- Saudi National: Unemployment fell to 7%, Vision 2030 overtook the interim milestone.
- Total (including expats): Saudi Arabia’s total unemployment rate fell to 2.8% in the first quarter of 2025, the lowest on record, as confirmed by the General Authority for Statistics. The decline shows rising participation rate and successful workforce policies under Vision 2030.
- Women and youth: The unemployment rate between these groups has been halved in the last four years, which is powered by an unprecedented reforms and programs on an unprecedented change. Employment between the core working-edge Saudi (aged 25–54) increased by 65.9%, falling down to 5.4%.
Young Saudi Men (15–24 years) dropped their unemployment to 11.6%, despite a slight fall in participation of 33.0%. Young Saudi women improved their employment-to-publicity ratio to 14.6%, with participation to 18.4%.
Saudi more in private sector roles
- In 2024, the employment of Saudi citizens in the private sector increased by 12% in 2024, expecting continuous improvement through 2025.
- High-skilled job opportunities expanded, with increasing average wages, especially in technology, finance and healthcare.
Women’s workforce participation reaches 36%
- The figure has doubled since 2018, marking a milestone in the gender workforce equity. Unemployment of Saudi women fell rapidly by 10.5%, which led to an increase in access to public and private job sectors, operated by structural reforms, and increased access to public and private job sectors. Women’s participation increased by 36.3%, with employment-to-public number 32.5%.
- Surge is responsible for broader labor law reforms, access to affordable childcare, flexible work options and changes in education system.
Political driver behind progress
IMF credited Saudi Arabia:
- February 2025 Labor law updates, hiring and impartiality in employment.
- Investment in AI and technical education from school level to create a digital-lover workforce.
- Extension of skill training programs, especially in partnership with the private sector.
- Support for freelance license and platform-based jobs to enable gig economy growth.
A strategic change in Vision 2030 execution
The government’s axis to separate this development is the target for “more jobs” to combine Saudi Arabia with the target for “more jobs” only for “more jobs”. Officials are not only reacting to market demands – they are shaping them by combining education improvement, private sector engagement and technology integration.Saudi Arabia’s revised 5% unemployment target is not just a numerical change, it is a statement of faith in its economic trajectory. Unemployment, decrease in growing women’s participation, and increase in high quality private sector roles suggest that Vision 2030 is progressing beyond aspiration in implementation. With the infusion of AI education, the policies of inclusive work and the skill strategy designed for the future, the Kingdom is not only addressing the current job market needs, but is actively proofing its workforce in a rapidly changing global economy.
