Saudi Arabia: Unemployment reduced to 7.5% and 2.5 million private sector employees

Saudi Arabia: Unemployment reduced to 7.5% and 2.5 million private sector employees

January 18, 2026
7 mins read
The Saudi Ministry of Human Resources announces a reduction in the unemployment rate to 7.5% and the number of Saudis in the private sector reaching 2.5 million, with the documentation of 700,000 flexible work contracts for the year 2025.

The Kingdom of Saudi Arabia has achieved an unprecedented qualitative leap in labor market indicators, as the Ministry of Human Resources and Social Development announced the lowest unemployment rates in the Kingdom's history at a level of 7.5% during 2025. These figures come as a culmination of efforts that have continued for years within the economic reform plans, as the number of citizens working in the private sector has risen to a record number of 2.5 million citizens.

Vision context and economic transformation

These figures cannot be viewed in isolation from the historical and economic context created by the Kingdom's Vision 2030. Before the launch of the Vision, employment relied heavily on the public sector, while unemployment rates were high, exceeding 12%. National strategies have restructured the economy to make the private sector the primary driver of growth, contributing to the creation of millions of sustainable job opportunities and reducing reliance on expatriate labor in critical professions.

Quality localization and future professions

The ministry did not stop at quantitative figures, but focused on qualitative localization , issuing more than 30 decisions to localize 600 highly specialized professions in the fields of engineering, pharmacy, dentistry, and accounting. This has led to tremendous leaps in the participation rates of Saudis in these vital sectors, ranging from 100% to 300%, thus strengthening the Kingdom's professional and economic security and raising the efficiency of the national workforce.

Modern work patterns: flexibility and freelance work

The Kingdom has kept pace with global shifts in employment patterns, also known as the "gig economy." In this context, the Ministry's platforms have documented over 700,000 flexible work contracts, and the freelance work model has attracted more than 430,000 beneficiaries, in addition to 200,000 remote workers. These models have not only contributed to reducing unemployment but have also provided additional income sources and greater flexibility for students and job seekers, positively impacting purchasing power and the local economic cycle.

Digital transformation and rights protection

In terms of digital infrastructure, the Qiwa platform has solidified its position as a cornerstone of the business environment, with documented contracts exceeding 12 million, serving 2.9 million establishments. The "Documented Employment Contract as an Enforceable Document" initiative, in partnership with the Ministry of Justice, represents a significant leap forward in safeguarding rights and reducing labor disputes, thereby enhancing the attractiveness of the Saudi market for foreign investments seeking a stable and regulated business environment.

Social empowerment and quality of life

On the humanitarian and social front, the Ministry successfully transitioned nearly 100,000 social security beneficiaries from a state of dependency to one of productivity and employment, representing a significant achievement for its empowerment programs. It also gave special attention to people with disabilities through financial, logistical, and housing support, reaffirming the Kingdom's commitment to the principle of equal opportunities and improving the quality of life for all segments of society.

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