Saudi unemployment plunges to 4.9% in Q2 2023

Saudi Arabia’s unemployment rate plunged to the lowest in a year as the kingdom’s economy is booming, the output gap is closed, inflation is contained, and fiscal and external buffers have been rebuilt.

The latest data from the country’s statistics authority revealed that joblessness among Saudi citizens fell to 8.3 per cent in Q2 2023, down from 8.5 per cent in the previous quarter and 9.7 per cent during the same period a year earlier.

The General Authority for Statistics (GAS) said the overall rate of unemployment in the Gulf state – which includes foreign nationals – stood at 4.9 period the period under review, down from 5.8 per cent in the prior year period.

The statistics authority said that the rate of unemployment among female cizitens fell to 15.7 per cent in Q2 2023, compared to 16.1 per cent in the previous quarter.

However, joblessness among Saudi males remained stable at 4.6 per cent during the period under review.

During the second quarter of 2023, labour force indicators showed a decline in the overall labour force participation rate (for Saudis and non-Saudis), reaching 60.8% compared to the first quarter of 2023.

GAS said the overall labour force participation rate for Saudis also decreased to 51.7 per cent in the second quarter of 2023, compared to the previous quarter.

Furthermore, the latest data from GAS indicates a decrease in the labour force participation rate for Saudi females, reaching 35.3 per cent compared to the previous quarter.

The labour force participation rate for Saudi males also fell to 67.5 per cent in Q2 2023, compared to 68.3 per cent in the previous quarter.

Saudi employment & Vision 2030

Meanwhile, the International Monetary Fund (IMF) said the Saudi unemployment rate dropped by 8 per cent last year – its lowest level on record and youth unemployment plunged by half to 16.8 per cent in 2022 relative to its level at the height of the Covid-19 pandemic.

Saudi Arabia’s unemployment is a key indicator watched by the country’s authorities as they try to create jobs for nationals in a private sector dominated by foreign labour.

Job creation, especially for Saudi nationals, over 60 per cent of whom are under the age of 35, is a key part of ruler Crown Prince Mohammed bin Salman’s ambitious economic agenda known as Vision 2030.

The country’s economy is undergoing a transformation, as it implements reforms to reduce heavy dependence on oil revenues while diversifying sources of income and enhancing competitiveness.

Read: IMF trims Saudi Arabia growth forecast to 2.1% in 2023