Riyadh: The Global Labor Market Conference (GLMC), in collaboration with the World Bank Group and the Ministry of Human Resources and Social Development, issued a report titled 'A Decade of Progress: Inside Saudi Arabia's Labor Market Transformation.' The report documents achievements since the launch of Saudi Vision 2030 and the Labor Market Strategy, along with the structural reforms that reshaped employment patterns and raised market efficiency and inclusiveness.
According to Saudi Press Agency, the report details three major shifts that reshaped the Saudi labor market. First, it records a marked expansion in the productive labor force. Labor force participation rose to 67.1% by 2025, alongside a net increase in employed citizens over the decade. The overall unemployment rate fell to 2.8% through mid-2025, as more people moved directly from economic inactivity into jobs, reflected in a higher employment-to-population ratio and easing labor-supply constraints linked to inactivity.
Second, the report tracks a structural shift in the private sector's role. The share of Saudis employed in the private sector reached 52.8% by the second quarter of 2025, with a notable move-especially among women-into jobs at private-sector establishments.
Third, the report points to fundamental shifts in social norms and job-search preferences. The share of people unwilling to work fell from 49% to 12%. The preference gap between the public and private sectors narrowed sharply, as the share seeking only government jobs fell for men from 60% to 10% and for women from 48% to 22%.
The report concludes that progress over the past decade provides a strong base for the next stage of labor market development. Saudi Arabia has begun using data and advanced analytics to strengthen policy quality and program effectiveness. It also stresses continued investment in skills development and raising workforce readiness for the new economy. The report underscores the importance of sustained public-private partnership and greater market flexibility to support inclusive growth and economic diversification and to keep pace with rapid changes in the world of work.