Saudi Arabia’s General Authority for Statistics’ (GaStat) Q2 2024 Labor Market report shows that unemployment dropped to 7.1 % down from 8.5% a year earlier.
The current unemployment rate is a tick away from Saudi Arabia’s Vision 2030 goal of reducing unemployment to 7% by 2030. In 2017 the rate stood at 11.6%.
The one-page GaStat report was released September 30, 2024 and can be read here.
In its November 2024 Saudi Labor Market Update – H1 2024, Jadwa Investment highlights these key points from the GaStat report:
- Unemployment dropped to 7.1 percent at the end of H1 2024, down from 8.5 percent a year earlier
- The decline was largely a result of female unemployment falling to 12.8 percent in Q2 2024 compared to almost 16 percent in the previous year. At the same time, male unemployment was also down to 4 percent versus 4.6 percent.
- Another major development is the rise in the number of Saudi workers in the private sector, up by 4.1 percent, from 2.2 million in Q2 2023 to 2.3 million in Q2 2024.
- Labor force participation also rose during H1, from 50.4 percent at end of 2023 to 50.8 percent at end of H1 2024, with higher participation among both genders.
- On a sectorial basis, GaStat data showed the largest rise in the hiring of Saudis during H1 took place in two sectors: ‘manufacturing’ and ‘construction’.
- The number of expats in the labor market rose significantly in H1 to reach almost 9 million, up from 8.1 million at the end of 2023. Around a third of the new joiners were seen in ‘construction’.
- Total employment has increased strongly in recent years, by 1.4 million in 2022, 0.9 million in 2023 and 0.8 million in H1-24.
- Looking forward, we expect an increase in job opportunities for Saudis due to robust growth levels across various sectors. The notable progress in the labor market over recent years is linked to the brisk expansion of the Saudi non-oil economy, and ongoing localization efforts in various sectors.
To read more, click here and here.
