Saudi Arabia’s overall unemployment rate edged down to 3.0% in the second quarter of 2026, from 3.1% in the previous quarter and 3.2% a year earlier, according to the latest Labor Market Statistics Survey, from the General Authority for Statistics (GASTAT). The labour force participation rate for Saudis and non-Saudis held steady at 67.2% quarter-on-quarter, up one percentage point year-on-year.

The picture among Saudi nationals was more mixed. Their unemployment rate rose to 6.5 % from 6.4% in Q1, although it remained 0.3 percentage points below its level a year earlier. The employment-to-population ratio for Saudis slipped to 45.5%, while their labour force participation rate fell to 48.7%.

Unemployment among Saudi women inched up by 0.6 percentage points from the previous quarter to 9.6%, while their labour force participation rate declined to 33.7%. For Saudi men, unemployment edged down to 4.8%, but participation also softened, falling to 63.9%.

Among young Saudis aged 15–24, unemployment improved quarter-on-quarter for both women and men, reaching 19.5% and 13.0%, respectively.

Jobseekers’ reported preferences point to potential opportunities for private-sector employers. GASTAT found that 96.7% of unemployed Saudis would accept a private-sector job. Direct applications to employers were the most common active job-search method, used by 76.8% of unemployed Saudi jobseekers, followed by the Jadarat national employment platform at 53.5%.

Overall, the latest figures show continued improvement in headline unemployment, alongside softer participation and employment indicators for Saudi nationals.

FOCUS ON WOMEN

Saudi Arabia’s drive to expand women’s participation in the workforce has emerged as one of the most significant labour market changes under Vision 2030. In less than a decade, the kingdom has more than doubled the proportion of women participating in the labour force, opening new sources of talent for businesses and supporting its broader effort to diversify the economy beyond oil.

Female labour-force participation rose from approximately 17% in 2016 to a record 33.7% in the second quarter of 2026, exceeding Vision 2030’s original target of 30% years ahead of schedule, according to the latest briefing from Saudi Vision. The rate subsequently eased to 33.9% in the first quarter of 2026, underlining that the next stage of progress may be more difficult than the initial expansion.

Saudi Arabia has also raised its ambition, with a target of 40% participation by 2030. Achieving it will depend not only on bringing more women into employment, but also on addressing childcare costs, transport limitations, pay disparities, and barriers to career advancement.

The increase in participation reflects a combination of legal reforms, changing social expectations and government programmes designed to encourage employers to hire Saudi nationals. Reforms to the male guardianship system in 2019 and 2020 also expanded women’s ability to travel, obtain official documents, and make decisions affecting their economic lives.

Meanwhile, changes to workplace regulations and the gradual opening of occupations previously inaccessible to women broadened employment opportunities. Women have entered retail, hospitality, entertainment, financial services, legal practice, manufacturing and security services, alongside established careers in education, healthcare, and government.

SAUDISATION CREATES NEW INCENTIVES

The expansion of women’s employment is closely connected to Saudi Arabia’s Saudisation policies, which encourage businesses to recruit Saudi nationals rather than rely predominantly on expatriate labour.

Education and healthcare remain important sources of employment for Saudi women, reflecting established career pathways and high levels of female educational attainment. But diversification is creating opportunities in a wider range of industries, the Vision 2030 briefing noted.

Financial services and technology offer prospects for skilled, relatively well-paid work, while tourism and hospitality are opening roles in a growing visitor economy. Women are also entering manufacturing, engineering and other technical occupations, although their representation remains uneven across industries.

Entrepreneurship provides another route into economic activity. Support from Monsha’at, the General Authority for Small and Medium Enterprises, includes business development training, mentorship and access-to-finance initiatives. Women-owned businesses are becoming increasingly visible in services, e-commerce, food production, and creative industries.

This diversification matters because the economic contribution of workforce participation extends beyond the number of people employed. Women with higher earnings can increase household purchasing power, build financial independence and contribute to the development of a more skilled domestic workforce.