The Ministry of Investment announced the results of the Kingdom’s labor market indicators for the third quarter of 2025, which demonstrated a tangible improvement in labor market performance and continued progress in employment and economic participation indicators These results reflect the effectiveness of national policies and economic reform programs adopted by the Kingdom to enhance job creation and support sustainable development.

Improvement in Unemployment Indicators

Official data showed that the overall unemployment rate in the Kingdom reached 3.4%, reflecting a clear improvement compared to previous periods. Meanwhile, the unemployment rate among Saudi nationals stood at 7.5%.
This gap between overall unemployment and unemployment among nationals highlights the government’s ongoing efforts to create job opportunities for citizens, strengthen national employment programs, and expand vocational training and workforce localization initiatives.

Rising Labor Force Participation

The Kingdom recorded an increase in the labor force participation rate for the total population, reaching 66.9%, while participation among Saudi nationals reached 49.0%. This positive indicator reflects improved citizen engagement across various economic activities, contributing to higher productivity and supporting the objectives of Vision 2030 to increase national participation in the labor market.

Empowerment of Saudi Women

The indicators also showed an increase in the participation rate of Saudi women in the labor market to 33.7%, reflecting the continued national efforts to empower women and enhance their role in economic development.
These results demonstrate the success of government initiatives aimed at creating a supportive work environment for women, expanding access to training and qualification opportunities, and promoting equality in employment and leadership roles across both the public and private sectors.

Role of National Policies in Strengthening the Labor Market

The reported indicators underline the effectiveness of national labor policies focused on:

  • Enhancing employment among citizens: Through vocational training programs, workforce qualification initiatives, and addressing supply-demand gaps in the labor market.

  • Improving workforce efficiency: By supporting education, technical and vocational training, and aligning workforce skills with market needs.

  • Encouraging private sector employment: Through incentives and strategic measures that enable companies to hire Saudi nationals in sustainable, high-quality jobs.

  • Empowering women in the labor market: By promoting economic inclusion and increasing women’s participation in national development.

Impact of Labor Market Improvements on the Economy

The improvement in labor market indicators contributes significantly to economic growth and social stability in the Kingdom by:

  • Increasing national productivity through higher participation of a skilled workforce.

  • Strengthening investment in human capital via continuous training and development.

  • Improving living standards for citizens by providing sustainable employment opportunities with adequate income levels.

  • Supporting labor market stability and reducing unemployment rates among nationals, thereby reinforcing the domestic economy and enhancing foreign investment attractiveness.

Continued National Efforts

The Ministry of Investment reaffirmed its commitment to continuing the implementation of programs and policies aimed at strengthening the labor market. These efforts include monitoring economic developments, analyzing employment and participation indicators, and adopting appropriate measures to support job creation, empower citizens, and maintain balance between labor supply and demand.

The Ministry also continues to enhance cooperation between the public and private sectors to ensure the availability of suitable job opportunities, improve vocational and technical training efficiency, and align educational outcomes with labor market requirements—ensuring the sustainability of improvements in employment and workforce participation.

Conclusion

The labor market indicators for the third quarter of 2025 reflect the notable progress achieved by the Kingdom in enhancing labor force participation, empowering citizens and women, and improving employment opportunities. These results serve as clear evidence of the success of national policies aimed at building a sustainable, dynamic labor market capable of supporting economic growth and achieving the objectives of Saudi Vision 2030 for comprehensive and sustainable development.