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Saudi Unemployment Falls to 3-Year Low While Expat Exodus Slows

Saudi Arabia’s Unemployment Falls to Lowest in Over Three Years

Saudi Unemployment Falls to 3-Year Low While Expat Exodus Slows
A wall mural displays the 2030 Vision logo and Saudi Arabia’s Crown Prince Mohammed bin Salman in Dhahran, Saudi Arabia. (Photographer: Simon Dawson/Bloomberg)

(Bloomberg) -- Saudi Arabia’s citizen unemployment rate fell to the lowest in more than three years as the kingdom’s non-oil economy recovers.

Joblessness slipped to 12% in the third quarter from 12.3% in the previous three months, according to data published Sunday by the official General Authority for Statistics. The quarterly data showed improvements across the board, with more Saudis working in both the public and private sectors and unemployment dropping for men and women.

But the private sector is still losing jobs on an annual basis, with 2.8% fewer Saudis employed than in the same period last year and the number of foreign workers down 8.5%.

Saudi Unemployment Falls to 3-Year Low While Expat Exodus Slows

Saudi Arabia’s unemployment is a key indicator watched by officials as they try to create jobs for nationals in a private sector dominated by foreign labor. Until now, improvements in employment have continued to lag a rebound in non-oil growth this year. That’s partly a reflection of persistent weaknesses in business confidence, worsened by a string of fiscal reforms such as new taxes and fees.

Joblessness among nationals has held at or above 12% for the past three years, testing the patience of young Saudis entering the labor market. The private sector has continued to shed Saudi jobs even as droves of foreigners have left, pushed out by the weaker economy and official policies that encourage or require businesses to hire locals.

However, the latest data show the annual rate of job loss in the private sector is slowing, both for Saudis and foreigners.

And although Saudi female unemployment remains over 30%, that’s largely a reflection of more women seeking jobs as social restrictions loosen in the conservative Islamic kingdom. Annually, the number of working Saudi women has gone up nearly 1%, while female labor force participation has risen to more than 23%, its highest level on record.

In addition to an improvement in the private sector, the government is also hiring. The number of Saudis employed by the public sector rose an annual 2.8%.

--With assistance from Sarah Algethami and Abeer Abu Omar.

To contact the reporter on this story: Vivian Nereim in Riyadh at vnereim@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Paul Abelsky, Claudia Maedler

©2019 Bloomberg L.P.