Saudi Arabia’s Overall Unemployment Rate Falls to 3% in Second Quarter

Saudi Arabia’s overall unemployment rate fell to 3 per cent in the second quarter of 2026, declining by 0.2 percentage points from a year earlier as the kingdom continues to expand employment opportunities across its economy.

The rate, which covers both Saudi and non-Saudi workers, was also 0.1 percentage point lower than in the first quarter, according to the General Authority for Statistics. The overall labour force participation rate stood at 67.2 per cent, unchanged from the previous quarter but 1 percentage point higher than a year earlier.

Unemployment among Saudi nationals reached 6.5 per cent during the quarter, down 0.3 percentage points from the same period last year but up 0.1 percentage point from the first quarter.

The employment-to-population ratio for Saudis fell to 45.5 per cent, while their labour force participation rate declined to 48.7 per cent. Both measures were lower than in the previous quarter and the second quarter of 2025.

Saudi Arabia has already reached its Vision 2030 target of reducing unemployment among citizens to 7 per cent. The government is now targeting a rate of 5 per cent by the end of the decade, alongside measures aimed at increasing participation by women in the labour market.

Anil Singh, chief business officer at TASC Outsourcing, said the lower unemployment rate reflected the expanding range of employment opportunities across sectors.

He pointed to areas including technology, tourism, hospitality, logistics, healthcare and professional services, as well as major development projects, as sources of new jobs.

Female unemployment rises

The latest figures showed a rise in unemployment among Saudi women. The female unemployment rate increased by 0.6 percentage points to 9.6 per cent in the second quarter, while female labour force participation slipped 0.2 percentage point to 33.7 per cent.

Amr Kazimi, principal at Arthur D. Little, said the increase followed the lowest recorded female unemployment rate and remained within the range expected in a rapidly expanding labour market.

He said continued demand among women to enter employment would require greater access to flexible working arrangements, childcare, transport and mid-level and technical positions.

Among Saudi men, unemployment fell by 0.1 percentage point to 4.8 per cent.

The data also showed strong interest in private-sector employment. Some 96.7 per cent of unemployed Saudis said they would accept a job offer from a private company.

Among unemployed Saudi women, 62.2 per cent said they would accept a commute of up to one hour, compared with 46.7 per cent of men. The figures also showed that 70 per cent of women and 82.9 per cent of men would accept working eight hours or more a day.

Singh said the figures pointed to a close connection between jobseekers and private-sector opportunities, while stressing the importance of matching available workers with suitable positions.