Vision 2030 reforms, private-sector hiring and workforce participation continue to strengthen the Kingdom’s labour market
Saudi Arabia’s unemployment rate declined to 6.4% in the first quarter of 2026, highlighting continued progress in the Kingdom’s labour market as Vision 2030 reforms expand employment opportunities and strengthen private-sector hiring.
- Vision 2030 reforms, private-sector hiring and workforce participation continue to strengthen the Kingdom’s labour market
- Saudi women record the biggest improvement
- Overall labour market remains resilient
- Youth and prime-age employment continue to improve
- Private sector remains the preferred choice
- Vision 2030 reforms continue to reshape employment
According to the latest Labour Force Survey from the General Authority for Statistics (GASTAT), unemployment among Saudi nationals fell by 0.8 percentage points compared with the previous quarter. The report also showed stronger labour force participation and higher employment levels across several groups, with Saudi women recording the biggest improvement.
The latest figures suggest that labour market reforms, workforce localisation policies and sustained private-sector hiring continue to support employment growth while narrowing gender and youth employment gaps.
Saudi women record the biggest improvement
Saudi women posted the sharpest quarterly decline in unemployment.
The unemployment rate for Saudi women fell to 9% during the first quarter of 2026. This marked a decline of 1.3 percentage points from the previous quarter.
Meanwhile, unemployment among Saudi men dropped to 4.9%, down 0.7 percentage points.
Labour force participation also remained strong. Among Saudi men, participation reached 64.2%, while the employment-to-population ratio stood at 61%.
Overall, the labour force participation rate for Saudi nationals increased to 49%. At the same time, the employment-to-population ratio rose to 45.8%, reflecting continued job creation.
Overall labour market remains resilient
The Kingdom’s broader labour market also improved.
Including both Saudi nationals and expatriate workers, the overall unemployment rate declined to 3.1%, down 0.4 percentage points from the previous quarter.
In addition, the overall labour force participation rate reached 67.2%, indicating continued demand for workers across the economy.
The latest data builds on a series of positive labour market indicators released over the past year. As Saudi Arabia diversifies beyond oil, sectors such as tourism, technology, logistics, financial services and manufacturing continue to create new employment opportunities.
Youth and prime-age employment continue to improve
Employment outcomes strengthened across key age groups.
Among Saudi nationals aged 25 to 54, unemployment declined to 5.1%. Labour force participation for this group reached 66.7%, while the employment-to-population ratio increased to 63.3%.
Youth employment also improved.
Among Saudi women aged 15 to 24, unemployment fell by 2 percentage points to 20.4%. Similarly, unemployment among young Saudi men declined by 1.2 percentage points to 13.8%.
Although youth unemployment remains above the national average, the latest figures point to steady progress as skills development programmes and labour market initiatives continue to expand.
Private sector remains the preferred choice
The survey highlighted growing confidence in private-sector employment.
On average, unemployed Saudis used three active job-search methods. Direct applications to employers remained the most common approach. Many jobseekers also relied on the Jadarat Unified National Employment Platform and professional networking platforms.
Notably, 95.8% of unemployed Saudi respondents said they were willing to accept a private-sector job. This aligns with the government’s long-term objective of increasing national employment outside the public sector.
The survey also found greater flexibility among jobseekers. Around 60.4% of unemployed Saudi women and 45.3% of unemployed Saudi men said they would commute for up to one hour to work. Moreover, 68.2% of women and 82.8% of men said they were willing to work eight hours or longer each day.
Vision 2030 reforms continue to reshape employment
The latest survey reflects the continued impact of Saudi Arabia’s labour market reforms under Vision 2030.
Over the past several years, the Kingdom has expanded workforce localisation programmes, introduced digital employment platforms and increased investment in skills development. These initiatives have helped improve labour market flexibility while supporting private-sector growth.
Policymakers remain focused on raising labour force participation, especially among women and young people. They also continue to align workforce skills with the needs of emerging industries.
The latest figures indicate that Saudi Arabia is making steady progress towards building a more diversified, competitive and inclusive labour market.
