July 2025

icon showing a handing pointing inside an open book

 IN THIS EDITION

The kingdom’s latest labour market report shows strong momentum in employment indicators across the board.

 

The overall unemployment rate (for both Saudis and non-Saudis) dropped to 2.8%, with total labour force participation reaching 68.2%. Among Saudis, the participation rate climbed to 51.3%, up from the previous quarter, according to GASTAT's Q1 2025 Labour Market Statistics. 

 

Saudi male labour force participation rose to 66.4%, with unemployment falling to 4%. Notably, female participation continued its upward trajectory, reaching 36.3%, while the unemployment rate for Saudi women declined to 10.5%, a drop of more than 11 percentage points since 2021. 

 

Young Saudi women (ages 15 to 24) also recorded gains, with their labour force participation rising to 18.4% and their employment-to-population ratio increasing to 14.6%. In contrast, participation among young Saudi men slipped to 33.0%, although their unemployment rate also fell to 11.6%.

 

Core working-age Saudis (25 to 54 years) posted stronger results, with an employment-to-population ratio of 65.9%, participation at 69.6%, and unemployment falling to 5.4%. Overall, unemployment among Saudis hit a historic low of 6.3% in Q1 2025, reflecting continued improvement in job creation and labour market access. 

 

Most Saudi job seekers reported using direct employer outreach (75.8%) and the national Jadarat platform (74.6%) as their primary search methods, while 64.5% used professional social media platforms to post or update their CVs.

 

A new initiative backed by the Public Investment Fund (PIF) is also expected to play a significant role in accelerating job creation across the kingdom.

 

In July, PIF launched Tasama Business Services Company, a wholly owned entity aimed at strengthening the country’s business services and solutions ecosystem. The initiative is designed to stimulate growth across both the public and private sectors. 

 

Tasama’s establishment follows the merger of BIAC – an incubator and accelerator previously owned by the Saudi Technology Development and Investment Company (TAQNIA), a PIF portfolio firm – with the PIF’s Shared Services Center. The result is a unified national platform specialising in integrated business support services. 

 

A key role for Tasama is supporting innovation and developing Saudi talent by building on BIAC’s track record across both public and private institutions and reinforcing a supportive environment for entrepreneurship.