Saudi Unemployment Rate Rises to 3.4% in Q3 2025 Despite Improvement in Female Employment

Riyadh | EcoPulse24

Saudi Arabia's unemployment rate rose to 3.4% in the third quarter of 2025, up from 3.2% in the previous quarter, according to the latest labor market data. This reflects mixed developments in employment across population groups and sectors.

The data shows that unemployment among Saudis reached 7.5%, compared to only 1.4% among non-Saudis, highlighting the persistent gap between local and expatriate labor in the workforce structure.

Gender-wise, female unemployment saw a notable decline to 9.4%, down from 11.3% in the second quarter, indicating improved employment opportunities for Saudi women. Male unemployment also decreased to 2.2%, compared to 4.3% in the previous quarter.

On the other hand, key labor market indicators weakened slightly: the labor force participation rate dropped to 66.9% from 67.1%, and the employment-to-population ratio fell to 64.6% from 65.0%.

Survey results highlighted greater flexibility among job seekers, with 95.3% of unemployed Saudis willing to work in the private sector. Additionally, 61.0% of women and 42.7% of men expressed readiness to commute at least one hour for work, while 70.6% of women and 86.7% of men were prepared to work eight hours a day or more.

These mixed labor market results reflect ongoing structural shifts driven by Saudi Vision 2030 programs, with significant progress in female employment but ongoing challenges in overall participation and job creation sustainability.