Saudi Arabia’s unemployment rate rose in the third quarter of 2025, for the second consecutive three-month period. The figures may reflect university graduates entering the labor force, but could also be a sign that spending cuts by the government and Public Investment Fund companies are hitting the job market.
Unemployment among Saudis reached 7.5% at the end of September after hitting a historic low of 6.3% at the start of 2025. Labor force participation — those in work or looking for a job as a portion of the working age population — also fell. Getting more Saudis into private sector jobs has been a success of the kingdom’s Vision 2030 economic transformation plan. Just 12 months ago the government had revised its 2030 unemployment target to 5% from 7%, as it cruised past the original goal.
The deteriorating employment figures come as the government clamps down on critics who have voiced anger over the rising cost of living and changes to social security benefits: It recently arrested six people and fined nine for social media posts it said would “incite public opinion,” with dozens more summoned over “provocative” content, the Financial Times reported.
