Saudi Arabia's job market is undergoing significant transformation, propelled by the Kingdom's Vision 2030 initiative aimed at diversifying the economy beyond oil dependence. Recent data and reports shed light on the current state and future projections of employment across various sectors.

Non-Oil Private Sector Growth

In March 2025, Saudi Arabia's non-oil private sector demonstrated robust growth. The Riyad Bank Purchasing Managers' Index (PMI) reported a slight decrease to 58.1 from February's 58.4; however, it remained well above the 50-point threshold, indicating expansion. This growth was fueled by increased new orders, attributed to lower prices and improved economic conditions. Notably, employment surged, marking the strongest quarter for job creation in over a decade, driven by higher sales and capacity enhancements.

Sector-Specific Developments

• Construction and Infrastructure: The construction sector has experienced exponential growth, with contract awards in 2024 reaching $146.8 billion, a record high. Major projects such as the Diriyah Gate are driving demand for skilled labor, contributing to job creation.

• Tourism: The tourism sector continues to play a pivotal role in shaping the labor market, with the Kingdom aiming to attract 150 million visitors annually by 2030. This goal is driving demand for hospitality, transportation, and cultural service jobs, creating thousands of opportunities for Saudi nationals.

• Technology and Green Energy: Significant investments in technology and green energy are fostering high-skilled employment in advanced fields. Initiatives such as the $100 billion AI and data analytics project, known as Project Transcendence, are positioning Saudi Arabia as a global hub for technology, creating thousands of high-skilled jobs.

Saudization Policies

To enhance local employment, the Ministry of Human Resources and Social Development has introduced new Saudization requirements for 2025, targeting 269 professions, including dentistry, pharmacy, accounting, and engineering. These measures aim to increase the participation of Saudi nationals in the workforce, aligning with Vision 2030 objectives.

Future Outlook

Despite current growth, projections suggest a deceleration in employment growth. Recruitment growth, which peaked at nearly 10% in 2022, is expected to slow to 3% by 2026. This slowdown is attributed to the Public Investment Fund's (PIF) spending cuts across various projects, leading to layoffs, hiring freezes, and project delays.

Conclusion

Saudi Arabia's job market is experiencing a dynamic shift, with significant growth in non-oil sectors, propelled by strategic investments and reforms. While current indicators are positive, future employment growth may face challenges due to fiscal adjustments and global economic conditions.