5 days ago
IMF report highlights Saudi Arabia's workforce transformation, strong non-oil growth
Saudi Arabia is transforming its labor market and projecting strong non-oil growth amid growing global uncertainty through increased employment, workforce participation and inclusive markets, according to a 2025 report released by the International Monetary Fund (IMF).
Key achievements
Among the most notable achievements highlighted in the IMF report were:
Unemployment among Saudi nationals dropped to 7 percent by the fourth quarter of 2024 — surpassing the original Vision 2030 target ahead of schedule. The government has since revised the goal to 5 percent.
Female labor force participation remains at a record 36 percent, marking a doubling over the past five years.
Youth and female unemployment have halved in four years, showcasing the inclusive impact of ongoing reforms.
Saudi employment in the private sector grew by 12 percent on average in 2024, with sustained growth into 2025.
Wage premiums are rising for Saudi workers, especially in high-skilled roles, signalling greater returns on education and training.
A spokesperson for the Saudi Ministry of Human Resources and Social Development said in a statement that the IMF report 'confirms that our labor market strategy is delivering results at scale.'
He added: '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 report in particular noted progress in areas such as training programs, flexible work models, and access to affordable childcare as major contributors to increasing productivity and participation.
It highlighted Saudi Arabia's strategic shift from job quantity to quality with a growing emphasis on job-matching, aligning education with market needs, and fostering high-skill employment.
Looking ahead
The latest IMF report comes as Saudi Arabia continues its Vision 2030 transformation. With unemployment targets already surpassed and a renewed focus on sustainable, high-quality job creation, the Kingdom is positioned to continue driving inclusive economic growth in the years ahead.
