SAUDI LABOUR MARKET

SAUDI EMPLOYMENT DATA REMAINS SOLID

The number of private sector workers in Saudi Arabia grew to 11,572,408 in August, underscoring continuous job growth in the sector, according to a new report by the National Labor Observatory (NLO).

Saudi nationals employed in the sector during the month reached 2,369,828, of which 1,397,146 were men and 972,682 were women. The number of residents working in the private sector stood at 9,202,580 – representing 8,812,758 men and 389,822 women. As many as 37,009 citizens were hired in the private sector for the first time, NLO noted.

The report details the total number of employees in the private sector at the end of the month, as well as the breakdown of citizens and residents employed, gender, net growth of citizen jobs, and the number of new entrants in June.

Meanwhile, the overall unemployment rate for both Saudis and non-Saudis reached 3.3% in the second quarter of 2024, marking a decrease of 0.2 percentage points compared to the first quarter of 2024. The decline suggests a strong non-oil economy and business confidence that has spurred hiring.

“The second quarter also recorded an annual decline of 0.8 percentage points compared to the second quarter of 2023,” according to latest report from the National Centre for Statistics and Information. “The unemployment rate for Saudis was 7.1% in the second quarter of 2024, down by 0.5 percentage points compared to the first quarter of 2024 and showing an annual decrease of 1.4 percentage points compared to the second quarter of 2023.

The results showed a decrease in the participation rate of Saudis in the labour force in the second quarter of 2024 by 0.6 percentage points compared to the first quarter of the same year, reaching 50.8%. However, there was a slight annual increase of 0.1 percentage points compared to the second quarter of 2023. Meanwhile, the employment-to-population ratio for Saudis declined by 0.3 percentage points compared to the first quarter of 2024, standing at 47.2%, while it increased by 0.8 percentage points annually compared to the second quarter of 2023.

WOMEN’S EMPLOYMENT UP

The second quarter also showed an increase in the employment-to-population ratio for Saudi women by 0.1 percentage points, reaching 30.8%. 

Meanwhile, unemployment rate of Saudi females decreased by 1.4  percentage points, recording 12.8%, compared to the previous quarter of 2024.

Saudi men’s employment-to-population ratio remained unchanged at 63.6%, while unemployment rate decreased by 0.2 percentage points reaching 4.0% compared to the previous quarter of 2024.

The strong job market is expected to continue in the third quarter, according to S&P Global’s latest purchasing manager’s index (PMI).

“As was the case in August, Saudi Arabian non-oil companies demonstrated strong eFForts to increase their workforce at the end of the quarter,” S&P noted in its October report. “Employment numbers rose solidly, with gains made to boost sales and reduce workloads, according to survey respondents.”

GRADUATES ON THE RISE

A separate recent report from NLO also highlights the skills of recent graduates in the Saudi job market.

The number of graduates from 51 Saudi universities reached 207,900, with over 203,600 being Saudis, making up 98% of the total graduates. Among them, 39% were male and 61% female, NLO noted.

A significant 84% of Saudi graduates obtained a bachelor's degree, making it the most common qualification. In terms of specialisations,32% of the graduates focused on Business Administration and Law, 19% on Arts and Humanities, and 10% on Natural Sciences, Mathematics, and Statistics.

Meanwhile, Umm Al-Qura University had the highest number of graduates in 2021, accounting for 11% of the total, followed by King Abdulaziz University with 9%, and King Faisal University with 8%.

In addition, employment rate for Saudi graduates within one year of graduation stood at 41%, with 10% employed before graduation and continuing in their jobs afterward. Around 14% were employed more than 12 months after graduation.

Graduates with a doctorate degree (PhD) had the highest employment rate, reaching 90% by the end of 2022. Of these, 43% were employed before graduation and continued in the same jobs after graduating. For bachelor's degree holders, 31% found employment within one year of graduating, with 8% of those already employed before graduation continuing in their positions afterward.