Employment among Saudi women in the private sector has exceeded one million for the first time, marking a significant milestone in the Kingdom’s labor market transformation under Saudi Vision 2030, according to analysis by Al Eqtisadiah.

The rise in female employment comes alongside a broader decline in unemployment, which fell by 0.3 percentage points to 7.2 percent in the fourth quarter of 2025. The figure brings the Kingdom closer to its Vision 2030 target of 7 percent, a threshold first reached in late 2024 before fluctuating through 2025.

Labor market gains have been underpinned by sustained economic growth, particularly in non-oil sectors, supported by government spending and expansionary fiscal policies. Analysts attribute job creation largely to private sector expansion and structural reforms aimed at increasing workforce participation among Saudi nationals.

Female employment has been a central driver of this shift. Prior to the launch of Vision 2030, unemployment among Saudi women stood at 34.5 percent, significantly contributing to overall joblessness. By the fourth quarter of 2025, female unemployment had declined to 10.3 percent, its lowest level since official records began in 1999.

At the same time, female labor force participation rose by 0.8 percentage points to 34.5 percent, exceeding the Vision 2030 target. Male participation also increased, reaching 64.7 percent. However, male unemployment edged up slightly to 5.6 percent, indicating a divergence in labor market dynamics across genders.

Overall unemployment, which includes both citizens and expatriates, rose marginally by 0.1 percentage points to 3.5 percent. This increase was driven by a rise in non-Saudi unemployment, which reached 1.7 percent.Economic indicators suggest that employment growth is closely tied to broader macroeconomic performance.

Saudi Arabia’s gross domestic product expanded by 5 percent year-on-year in the fourth quarter of 2025, marking the fastest pace in four quarters and the eighth consecutive quarter of growth. The oil sector recorded a 10.8 percent increase, its strongest expansion in over three years, supported by higher production levels.

The non-oil sector maintained steady growth of 4.3 percent for the 20th consecutive quarter, reinforcing its role as a key pillar of economic diversification. In contrast, the government sector contracted by 1.2 percent, its first decline in more than two years.

Within the private sector, employment gains among Saudi nationals have been substantial. A total of 811,000 jobs were added over the period, including approximately 533,000 positions filled by women and 278,000 by men. As a result, total Saudi employment in the private sector rose to 2.55 million, representing a 52 percent increase.

Women accounted for 66 percent of new jobs created for Saudi citizens in the private sector, highlighting their growing role in the workforce. The increase reflects a series of policy reforms aimed at improving access to employment opportunities and reducing structural barriers.

Key measures have included lifting restrictions on women’s participation across multiple industries, advancing wage equality, and updating maternity regulations. Authorities have also introduced targeted programs to support female employment, including training initiatives, childcare services, and policies designed to enhance workplace inclusion.

Mobility reforms, including the lifting of restrictions on women driving, have also contributed to increased workforce participation by improving access to jobs. In parallel, government initiatives have encouraged private sector firms to hire more women, aligning corporate practices with national employment objectives.

The expansion of female employment has had a measurable impact on the overall labor market, contributing to a sustained decline in unemployment among Saudi nationals. Analysts note that continued progress will depend on maintaining economic growth, particularly in non-oil sectors, and further integrating women into emerging industries.

The data indicates that structural changes in the labor market are gaining traction, with female participation emerging as a key factor in achieving broader economic goals.

The launch reflects Saudi Arabia’s growing role in shaping global discussions on employment, social protection, and sustainable labor reforms amid rapidly changing economic conditions.

The academy brings together policymakers, experts, and practitioners from around the world to exchange knowledge on global labor trends and innovative policy solutions.

With the addition of 19 new member countries in this edition, the initiative now includes participants from 50 nations, underscoring its expanding international reach and relevance in addressing shared employment challenges.

Designed as a year-long academic and capacity-building program, the Global Labor Market Academy focuses on developing practical skills and policy frameworks that can be adapted across diverse economic contexts.

Participants engage in research-driven discussions, case studies, and collaborative learning aimed at improving labor market resilience and promoting inclusive growth.

The opening sessions of the academy were led by experts from the World Bank, who emphasized the critical role of social and labor policies in addressing global challenges such as unemployment, workforce transitions, and demographic changes.

Special attention was given to youth employment, highlighting the need for policies that equip young people with relevant skills and create pathways to decent work.

Saudi Arabia’s hosting of the academy aligns with broader national efforts to modernize its labor market and invest in human capital development.

By facilitating dialogue among international stakeholders, the Kingdom aims to contribute to evidence-based policy making and support reforms that enhance productivity, fairness, and social stability across labor markets worldwide.

The academy also serves as a platform for sharing best practices on labor regulation, social protection systems, and employment strategies that respond to technological change and globalization.

Through structured learning modules and peer-to-peer engagement, participants gain insights into how different countries tackle labor market challenges and adapt policies to local needs.

Looking ahead, the initiative has set an ambitious goal to expand its membership to more than 75 countries by 2028.

This expansion is intended to strengthen global collaboration and position the academy as a leading forum for shaping the future of international labor markets through research, policy innovation, and capacity building.

The event in Riyadh reflects Saudi Arabia’s commitment to fostering international partnerships and contributing to global policy dialogue.

By hosting the Global Labor Market Academy, the Kingdom reinforces its role as a convener of ideas and a supporter of cooperative approaches to employment and social development challenges.

The inauguration concluded with a reaffirmation of the academy’s mission to support sustainable labor market reforms and empower policymakers with the tools needed to navigate evolving workforce dynamics.

As global employment landscapes continue to change, the academy is expected to play an increasingly important role in guiding policy responses and promoting inclusive economic growth.