Saudi Arabia’s unemployment rate improved as the economy started to open up in the third quarter of 2020 following the coronavirus lockdown, according to new official figures.
The General Authority for Statistics’ (GaStat) latest labour market release showed that unemployment declined to 14.9 percent in Q3, down from 15.4 percent in the previous quarter.
Citing the figures, Jadwa Investment said the improvement was in-line with the pick-up in overall economic activity in Q3, following the lifting of severe pandemic related restrictions in mobility from June onwards.
It added that the unemployment rate is expected to further decline this year as economic recovery accelerates as more of the Saudi population is inoculated.
According to the figures, abour force participation inched up in Q3 to 49 percent versus 48.8 percent in Q2 , with a modest rise in male participation being observed.
However, the number of expats in the jobs market declined by 231,000 on a net basis in Q3, quarter-on-quarter.
Jadwa noted that on a sectorial basis, while the number of Saudi workers witnessed a rise in most sectors,a handful of sectors also saw a decline in the number of expats, most notably in construction, wholesale and retail, and administrative services.
Jadwa said it expects to see an improvement in Saudi unemployment rate during Q4
“In line with our expectations, we note a higher degree of substitution of expats with Saudis was seen in wholesale and retail, administrative services, manufacturing, and accommodation and food services,” Jadwa said.
“Looking ahead, we expect to see an improvement in Saudi unemployment rate during Q4, in-line with a pick-up in a number of economic indicators during the quarter. Looking further ahead into 2021, with the kingdom progressing with the Covid-19 vaccine program, we expect the economic recovery to accelerate as more of the population is inoculated, all of which will aid employment growth during 2021,” it added.
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