Jadwa Investment expects Saudi unemployment rate to shrink to 10.5% by year-end

Riyadh City

Jadwa Investment Co. said that the overall improvement in the labor market during the past quarters was achieved faster than its expectations, as the unemployment rate fell by about 3.7% since Q2 2020.

The improvement in the labor market is expected to continue during the remainder of this year, the company said in a report, accordingly revising its unemployment forecast to 10.5% by the end of 2021, compared to its previous forecast of 12.1%.

The continuation of vaccinations against the coronavirus will lead to more recovery in the non-oil economy during H2 2021, which will contribute to the growth of employment.

The expected recovery in summer tourism activities in Q3 will help boost seasonal employment across the Kingdom.

Jadwa further added that employment will also benefit from the ongoing efforts to nationalize jobs, return of entertainment activities, and the gradual return of attendance in schools in the next academic year.