LABOUR MARKET

NUMBER OF SAUDI WOMEN IN EMPLOYMENT HITS NEW HIGH

Saudi Arabia’s latest Labor Market Bulletin highlights Saudi women’s increasing participation in the labour force, which climbed by 0.8 percentage point (pp), to 36.2% in the third quarter of 2024.

The employment-to-population ratio among Saudi women rose by 0.5 pp, reaching 31.3%. Among Saudi women aged 15 to 24, participation in the labour force increased by 1 pp, to 18%, while the employment-to-population ratio among this age group jumped by 0.6 pp, to 13.6%, in Q3 of 2024, according to the General Authority for Statistics (GASTAT).

Overall unemployment rate among Saudis in the third quarter of 2024 was 7.8%, up by 0.7 pp over the second quarter of the same year, and a year-on-year decrease of 1 pp from Q3 2023, GASTAT noted.

The bulletin also shows that Saudi and non-Saudi labour force stood at 66.6% in Q3 of this year, a 0.4 pp increase over Q2 of 2024. Among Saudis, the labour force grew by 0.7 pp in Q3 2024, to reach 51.5%,marking a year-on-year increase of 0.7 pp. The employment-to-population ratio among Saudis went up by 0.2 pp, reaching 47.4%, or an annual growth of 1.1 pp.

Participation in the labour force among young Saudi men increased by 1.1 pp, to 34.6%. Among Saudi men in general, participation in the labour force increased by 0.6 pp, to 66.9%, and the employment-to-population ratio reached 63.7%. 

Among Saudi men and women in the prime working-age group (25 to 54), participation in the labour force rose by 0.7 pp, to 69.4%, and the employment-to-population ratio increased by 0.3 pp, to 64.8%.

HONING LOCAL TALENT

The Ministry of Communications and Information Technology's Center of Digital Entrepreneurship (CODE) is playing a role in enhancing domestic talent and boosting the digital entrepreneurship landscape in the kingdom. 

The centre served over 17,300 beneficiaries, supported more than 400 start-ups across various digital sectors, and created 1,200 new job opportunities through its projects and initiatives. 

In terms of investments, the centre implemented 50 funding rounds worth SAR 162 million. It also contributed to fostering innovation and development through over 300 new technical prototype business models. In addition, the centre provided its services through seven innovation labs in five dierent regions and established local and international partnerships to enhance the innovation environment, enabling entrepreneurs to access global investors and support networks.

The report affrms the centre's commitment to supporting innovation and entrepreneurship, and enhancing the national digital economy.

Meanwhile, the Human Resources Development Fund (HRDF) has also facilitated the employment of 169,000 Saudi nationals during the third quarter of 2024, investing SAR 1.4 billion in training and empowerment programmes. 

In the first nine months of 2024, the fund helped approximately 294,000 Saudi men and women secure jobs in the private sector. Moreover, 1.7 million individuals benefitted from the fund's programmes and services during the same period. 

From the start of the first quarter until the end of the third quarter of 2024, about 139,000 establishments across the kingdom benefited from the fund's services and products in vital sectors, with a total expenditure of SAR 5.48 billion on training and development programmes.

GIG ECONOMY

Freelancing is also experiencing rapid growth in the kingdom and has emerged as a key driver of the gig economy, which empowers individuals with flexible work options. The freelance sector's contribution to the economy is substantial. In 2023, freelancers added SAR 72.5 billion to Saudi Arabia’s GDP, representing 2% of the total.

Recognising this shift, the Ministry of Human Resources and Social Development launched the "Future Work" company in 2019. The initiative promotes modern employment models such as remote work, flexible hours, and freelancing. The goal is to expand job opportunities, empower Saudi talent, and create a labour market that complements traditional employment, while aligning with global trends.

A recent report by Future Work highlights the impressive expansion of freelancing and its alignment with Vision 2030. By September 2024, more than 2.25 million individuals had registered on the freelance platform, demonstrating the rising demand for flexible work solutions.

The report outlines a diverse range of freelance activities. Trade and retail account for the largest share at 38%, followed by industry at 13%, and business services at 11%. This diversity illustrates the adaptability of freelancing to meet the needs of various sectors.

In terms of education, the freelance sector accommodates a wide range of qualifications. Bachelor’s degree holders make up 62% of freelancers, followed by high school graduates or those with less formal education at 31%, and higher-degree holders at 7%.

Technology has become a cornerstone of freelancing, with digital platforms playing a vital role, particularly in fields such as technology, finance, and information. These tools enhance communication and eciency, paving the way for greater sustainability and success. 

Notably, the report highlights significant interest among women, with 3.2 million expressing a desire to enter the freelance market. This is in keeping with initiatives aimed at enhancing women’s economic participation, while enabling them to balance professional and personal responsibilities.