The Saudi government has now set a lower unemployment target of 5%, following a steady progress in employment creation and more people joining the workforce. 

This was highlighted in the latest 2025 report from the International Monetary Fund (IMF), stating, “Unemployment among Saudi nationals hit a record low, with youth and female unemployment rates halved over four years.”

Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) and Ministry of Finance have welcomed the IMF’s findings, which show just how fast the Kingdom’s labour market is evolving under Vision 2030.

A key milestone reflected in the report is that unemployment among Saudi nationals dropped to 7% by the end of 2024, reaching the original Vision 2030 goal well ahead of time. In addition to this, the total unemployment rate including expats has dropped to 2.8% as conveyed by the General Authority for Statistics of Saudi Arabia (GSTAT) last month. 

The new 5% target for unemployment reflects growing confidence in the country’s economic direction. Echoing GSTAT’s findings, the IMF's report also noted that women’s participation in the workforce is now at 36%, double what it was five years ago. Youth and female unemployment rates have also been cut in half over the past four years, showing how inclusive the reforms have been.

In 2024, private sector jobs for Saudi nationals grew by an average of 12%, and that growth is continuing into 2025. Wages, especially for high-skilled roles, are going up, pointing to better returns on education and training.

A spokesperson from KSA HR Ministry said, “This report confirms that our Labor Market Strategy is working. Unemployment is falling, private sector roles are expanding, and women’s participation has hit record levels. The changes underway are real and benefiting people across the Kingdom.”

The IMF also welcomed updates to Saudi labor laws made in February 2025, along with investments in skills training, flexible work options, and affordable childcare, all seen as key to boosting productivity and inclusion.

The report also praised the shift from just creating more jobs to creating better ones, with a sharper focus on matching people to the right roles and aligning education with today’s job market.

Saudi Arabia has already taken key steps to prepare its future workforce, including introducing AI education from the early school years. By equipping the next generation with future-ready skills from a young age, the Kingdom is ensuring they’re ready for transformed industries and the evolving demands of the job market. These efforts are expected to boost workforce participation and drive long-term economic growth.