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Saudi unemployment drops again in second quarter

By Neil Halligan
Young women at a careers fair in Riyadh. The unemployment rate for women in Saudi Arabia was 10.8% in the second quarter Reuters/Faisal Al Nasser
Young women at a careers fair in Riyadh. The unemployment rate for women in Saudi Arabia was 10.8% in Q2
  • Joblessness falls to 3.3% in Q2
  • Rate is 7.1% for Saudi nationals
  • Companies face recruitment logjams

The unemployment rate for Saudi nationals fell to 7.1 percent in the second quarter of 2024, government data shows, down from 7.6 percent in the first quarter and 8.5 percent in the same period a year ago.

The overall unemployment rate, which includes expatriate workers, dropped to 3.3 percent in Q2, down from 4.1 percent in 2023, according to the General Authority for Statistics’ latest labour force survey.

The employment-to-population ratio for Saudi nationals – which measures how much of the working-age population is employed – stood at 47.2 percent in Q2. With non-Saudi workers added to the total, the ratio was 64 percent. The OECD average is just over 70 percent.

The survey published on Monday reported that 95.5 percent of Saudi job seekers would accept posts in the private sector. 

It also found nearly 60 percent of unemployed Saudi females and 43 percent of unemployed Saudi males were willing to commute at least one hour to work and that most (82 percent for females and 94 percent for males) were prepared to work for eight hours or more per day.

Despite job seekers’ views and the high number of young Saudi nationals entering the labour market each year – about two-thirds of the population is under 30 – many employers report difficulties in recruiting staff. 

Public Investment Fund-owned companies working on Vision 2030 projects are inundated with applications from Saudi nationals, while the foreign businesses setting up in the kingdom in increasing numbers have to cope with complex employment regulations, including Saudisation quotas.

In August, Riyadh introduced amendments to its labour laws to provide more clarity on hiring and firing. 

Among the new regulations, paid maternity leave has been increased to 12 weeks, trial periods for employees are fixed at 180 days and notice periods for employees are locked in at 30 days and for employers at 60 days.

Employees also have the right to paid leave following the death of family members. 

Penalties have been introduced for job recruiters operating without a permit from the Ministry of Human Resources and Social Development and employers are required to provide on-the-job training. 

The regulations apply to anyone hired on a Saudi job contract.

Saudi Arabia remains a relatively underdeveloped market for [app-based] employment platforms,” Norah Alzahrani, business development manager at recruitment specialist Tasc Outsourcing, told AGBI in August. 

“Traditional agencies still play a valuable role, but companies are increasingly exploring alternative platforms,” she said.

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