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Saudi unemployment rate down to 4.4% in Q4 2023

The rate of unemployment, for both Saudi nationals and expats, decreased in the last quarter of 2023 indicating job creation in the economy

by Gulf Business with Reuters

March 28, 2024

Image credit: Getty Images

According to the latest data released by Saudi Arabia’s statistics authority, overall unemployment figures for the last quarter of 2023 have reached 4.4 per cent, indicating the strength of the economy.

Additionally, the General Authority for Statistics data indicated that unemployment among Saudi citizens decreased to 7.7 per cent in the fourth quarter of last year, down from 8.6 per cent in the previous quarter, and from 8 per cent in the same period a year earlier.

The overall rate of unemployment, which includes expat labor, fell to 4.4 per cent in the fourth quarter, down from 5.1 per cent in previous quarter and 4.8 per cent in the same period the prior year, according to government data released Thursday.

Unemployment figures

Foreign nationals comprise just over 40 per cent of the kingdom’s total population according to the latest census, the majority of whom need an employment contract to live in the country.

The share of women in the workforce, the employment-to-population ratio increased by 0.6 percentage points to 30.7 per cent. However, the participation rate decreased by 0.4 percentage points to 35.5 per cent, and the unemployment rate decreased by 2.6 percentage points to 13.7 per cent compared to the previous quarter of 2023.

The latest report notes that the Saudi core working age population, defined between 25-54 years of age, saw an increase in the employment-to-population ratio by 0.4 percentage points in Q4 of 2023 reaching 63.2% per cent.

Additionally, for Saudis aged 55 years and over, labour market indicators showed an increase in employment-to-population ratio and labor force participation rate, while the unemployment rate remained stable in Q4/2023, compared to the previous quarter of 2023.

Sectors

The sectors that employed the most labour in 2023 were:

Construction
Wholesale and retail trade; repair of motor vehicles
Manufacturing
Administrative and service industry
Hospitality and Food industry

Economic activities	Saudi			Non Saudi			Total
Economic activities	Male	Female	Total	Male	Female	Total	Male	Female	Total
Manufacturing	223,986	120,814	344,800	856,648	9,950	866,598	1,080,634	130,764	1,211,398
Construction	234,301	149,484	383,785	2,212,999	20,403	2,233,402	2,447,300	169,887	2,617,187
Wholesale and retail trade; repair of motor vehicles and motorcycles	211,348	200,153	411,501	1,187,830	17,542	1,205,372	1,399,178	217,695	1,616,873
Transportation and storage	89,295	43,375	132,670	367,810	2,763	370,573	457,105	46,138	503,243
Accommodation and food service activities	74,330	73,095	147,425	520,380	6,171	526,551	594,710	79,266	673,976
Administrative and support service activities	120,132	71,762	191,894	793,323	125,723	919,046	913,455	197,485	1,110,940

Source: GOSI; Administrative registers , Labour market 2023 Q4

Non-oil economy

Job creation for Saudi nationals, over 60 per cent of whom are under the age of 30, is a one of the priorities of Crown Prince Mohamed Bin Salman’s Vision 2030 programme, which aims to diversify the country’s economy away from the energy sector.

Earlier this year, Saudi Arabia’s economy hit a key economic milestone as the non-oil sector activities comprised 50 per cent of the country’s real GDP in 2023.

The non-oil economy, valued at SAR1.7tn (approximately $453bn) at constant prices, has been buoyed by growth in investment, consumer spending, and exports.

Private-sector investment, in particular, has surged by 57 per cent over the past two years, reaching a record high of SAR959bn ($254bn) in 2023.

Read full report: Saudi Arabia hits important economic milestone: Non-oil activities at 50% of GDP