Saudi citizen unemployment rose marginally to 8.6% in the third quarter, which is higher than the previous quarter’s 8.3%, but still lower than the 9.9% recorded in the same period a year ago. The General Authority for Statistics showed that the overall unemployment rate, including foreign nationals, rose to 5.1% from 4.9% in the second quarter.

Foreign nationals, who make up just over 40% of the total population, mostly need an employment contract to live in the country. Unemployment remains relatively high among Saudis aged 15 to 24, at 13.6% for males and 25.3% for females. Total youth unemployment has increased to 17.4% from 17%.

Total Saudi unemployment for citizens aged 24 to 54 was 7.9%, a slight rise from the previous quarter’s 7.5%. Over 60% of Saudi citizens are under the age of thirty, and job creation is a key focus of Crown Prince Mohammed Bin Salman’s Vision 2030 program, which aims to stimulate the economy and diversify it away from oil.

As part of the government’s efforts to decrease reliance on expatriate labour, a Saudization program has been implemented that requires companies to employ certain quotas of Saudi nationals. Nevertheless, the overall labour market participation rate for Saudi citizens decreased slightly to 51.6% from 51.7% in Q2 and fell from 52.5% in Q3 of 2023. Saudi women’s unemployment rate rose to 16.3% from 15.7% in Q2 but was still lower than the previous year’s 20.5% in Q3.