Saudi Arabia revises unemployment target to 5% as IMF hails labor market transformation
The Ministry of Human Resources and Social Development (HRSD) welcomed the IMF's final conclusions, which underscore the Kingdom's accelerating labor market transformation under Vision 2030.
Among the major achievements, unemployment among Saudi nationals declined to 7% by the fourth quarter of 2024, surpassing the original Vision 2030 target ahead of schedule.
The government's new goal of 5% signals growing confidence in the Kingdom's economic trajectory.
The IMF report also noted that female labor force participation remains at 36%, doubling over the past five years.
Both youth and female unemployment rates have halved over a four-year period, reflecting the inclusiveness of Saudi labor reforms.
Private sector employment for Saudi nationals grew by an average of 12% in 2024, with sustained momentum into 2025. Wage premiums are increasing, especially in higher-skilled positions, indicating rising returns on education and workforce development.
A spokesperson for HRSD commented on the report's findings, stating: 'This report confirms that our Labor Market Strategy is delivering results at scale. Unemployment is falling, private sector opportunities are growing, and female participation in the workforce has reached historic highs. The structural transformation underway is real and it is delivering tangible benefits to citizens across the Kingdom.'
The IMF also welcomed the February 2025 amendments to Saudi labor law and praised investments in workforce training, flexible employment models, and affordable childcare as critical enablers of productivity and inclusivity.
It further emphasized Saudi Arabia's strategic shift from quantity to quality of jobs, improved job-matching efforts, and stronger education-to-work alignment.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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