The Minister of Human Resources and Social Development, Ahmed Al-Rajhi, stated at the Budget Forum 2024 that Saudi Arabia will reduce its unemployment rate target from the previous target of 7% to 5% by 2030 as part of the broader Vision 2030 objectives, aiming to improve the labor market as well as diversify the economy.

Al-Rajhi mentioned that the unemployment rate among Saudi nationals, which had been at 12.8% in 2018, has now gone down to 7.1%. The original goal for Vision 2030 was to reduce Saudi Arabia’s unemployment rate to 7% by 2030, and the Kingdom has already surpassed that, achieving it six years before the timeline. Because of this accomplishment, Crown Prince Mohammed bin Salman ordered a review of the goal, and that is why the new target is 5%.

The Minister said that the transformation of the labor market in the Kingdom is an important part of Vision 2030. The human resources and social development sector have been playing a pivotal role, contributing to eight out of 11 key programs under the Vision, and overseeing six major workforce and social development strategies.

There is a remarkable improvement in the female economic engagement in Saudi Arabia, far beyond the target of 30% as envisioned in Vision 2030. The female participation rate has reached 35%, exceeding the target by 5% seven years ahead of schedule. Furthermore, the Ministry of Human Resources and Social Development has successfully implemented 84% of its Labor Market Strategy over the past four years, generating 300,000 jobs in specialized fields such as engineering, accounting, and healthcare.

In addition to employment growth, the Ministry has rolled out initiatives like the Waad program in partnership with the private sector, providing over 1.3 million training opportunities. Labor market reforms, including the amendment of over 38 regulatory articles, have also helped create a more flexible and modern workforce framework. Additionally, new insurance products, including domestic worker and labor market insurance, have been introduced to protect both employees and employers.

Al-Rajhi also highlighted the success of digital initiatives in improving efficiency. Through automation services, it has reduced in-person visits to its branches by 95%, from 60,000 per month to just 3,000.

This announcement reflects the continued commitment of Saudi Arabia toward advancing workforce development in the Kingdom to be well positioned against the demands of a diversified economy ready for 2030.