Saudi labor market reaps the benefits of reforms: 604,000 Saudis employed in 3 years, salaries rise significantly

A survey by Maaal revealed that the past three years have witnessed the entry of 604,426 Saudi men and women into the labor market. This explains the record-low unemployment rate among Saudis, which reached 7% by the end of 2024, accompanied by a significant increase in average salaries for Saudis in the private sector.

With these results, the unemployment rate index becomes one of the most prominent indicators of the Kingdom’s Vision 2030, exceeding its target and marking a major milestone in the Vision’s series of achievements. The unemployment rate is one of the overall indicators of any economy, and its decline reflects the success of all economic sectors and all its components. It is a new testament to the confidence of the Ministry of Human Resources and Social Development, whose policies and initiatives have kept pace with the economic and social movement of the Saudi labor market. Number of Saudi Employed

Monitoring data based on the Labor Market Bulletin issued by the General Authority for Statistics shows that the number of employed Saudis reached 4,054,483 by the end of 2024, compared to 3,450,057 by the end of 2021, an increase of 604,426 Saudis. Therefore, the next three years (2022, 2023, 2024) following the COVID-19 pandemic reflected all the efforts and policies implemented since the launch of the Kingdom’s Vision 2030 in 2016, allowing the Saudi labor market to begin reaping the fruits of its vision. According to the data, the unemployment rate among Saudis fell from 11% in 2021 to 7% by the end of 2024, achieving the Vision’s initial target before reducing it to 5% by 2030. This reflects the significant momentum generated by the Vision’s programs and policies and the significant shift witnessed by the Saudi economy across all sectors, as attested by all international institutions and observers.

The unemployment figures among Saudis reflect the solid foundations of the Saudi economy in the post-Vision 2030 era. The low unemployment rate does not represent the success of the policies of a specific sector, but rather reflects the success of an integrated and harmonious system under the wise leadership and supervision of Crown Prince Mohammed bin Salman. The labor market policies adopted by the Ministry of Human Resources and Social Development, characterized by realism and gradualism, have become an example to be emulated and a model praised by all observers of the Saudi labor market. The decline in the unemployment rate among Saudis by the end of 2024 coincides with the boom in the Saudi economy, particularly the growth of non-oil activities. The non-oil sector (including government activities) represents approximately 70% of GDP, compared to 63% in 2018. This is due to progress in achieving all Vision 2030 indicators. Since Saudi Arabia announced Vision 2030 in 2016, it has achieved 87% of its 1,064 goals. This includes exceeding 100 million tourists and increasing the employment rate of women.

Saudi Women

Saudi women have been at the forefront of the labor market, with the female unemployment rate in the Kingdom declining from 22.5% in 2021 to 11.9% by the end of 2024. Saudi women accounted for 65% of the total Saudis entering the labor market over the past three years, with a total of 390,823 Saudi women. Monitoring data shows that the decline in unemployment among Saudis and the increase in the number entering the labor market have been accompanied by a significant increase in the salaries received by Saudis. According to data from the General Organization for Social Insurance (GOSI), the first eight years of Vision 2030 saw the number of Saudis receiving salaries of 10,000 riyals and above double, representing 30% of Saudis enrolled in the GOSI by the end of 2024, compared to only 12% receiving the same wage at the end of 2016. Monitoring data also shows that the first eight years of Vision 2030 saw a restructuring of Saudi salaries. The largest segment dominating the Saudi salary structure is those earning between 5,000 and 9,999 riyals per month, representing 40%, with a total of 1,148,371 Saudi men and women by the end of 2024, up from 19% in 2016.

The segment of Saudis whose salaries are less than 5,000 riyals will represent approximately 31% by the end of 2024. This compares to the largest segment in 2016, at 70%. Those earning 3,000 riyals per month or less accounted for the largest percentage, 47%, of all Saudis participating in social insurance at the end of 2016.

Social Insurance

According to data, the number of Saudis participating in social insurance and receiving a monthly salary of 10,000 riyals or more reached 856,400 Saudi men and women by the end of 2024, representing 30% of all Saudi participants. In contrast, the data shows that their number did not exceed 208,425 Saudi men and women by the end of 2016, representing 12% of all Saudi participants. The positive results and rapid decline in unemployment rates reflect the significant efforts made by the Ministry of Human Resources and Social Development in recent years. In just five years, the Saudi labor market has witnessed a series of powerful reforms that have proceeded in parallel, beginning with legislative regulation and regulatory amendments that have created a favorable environment for Saudization, based on a practical, well-thought-out approach characterized by realism. The numerous Saudization decisions, which encompassed a wide range of fields and sectors, have played a significant role in integrating Saudi youth into the labor market, demonstrating their competence and ability to assume responsibility in many areas previously dominated by expatriates. The Ministry has succeeded in the firm and gradual implementation of these realistic Saudization decisions, which have been well-received by the Saudi business sector. As part of the Ministry’s efforts to empower Saudi women, it has adopted a leadership training and mentoring initiative to increase the percentage of women in middle and senior leadership positions. This initiative aims to increase women’s participation in the labor market by training female cadres in various sectors, both public and private, with the goal of providing an ideal environment that enables them to access information that will enrich the knowledge of female leaders and provide them with everything they need to become a leading role model that the nation can be proud of. The initiative to encourage remote work is one of the important initiatives launched by the Ministry of Human Resources and Social Development to motivate women to work. The initiative seeks to develop an operational model designed with pioneering specifications that achieves the program’s vision of developing human resources, increasing productivity, and raising employment rates for job seekers, especially women and persons with disabilities, across the Kingdom. This contributes to achieving the Ministry’s strategic objectives.