Saudi Arabia’s non-oil private sector saw significant growth between January and March 2025. As demand increased and business activity expanded, companies created jobs at the fastest rate in 12 years. The key phrase “Saudi hiring growth” explains the strong rise in employment during this period.
During these three months, businesses received more orders. To meet demand, they raised output and stocked up on materials. At the same time, competition pushed many firms to offer discounts. This helped them attract more customers and stay ahead in the market.
Despite price cuts, the cost of raw materials rose slowly. In fact, input cost inflation fell to the lowest level in over four years. Wage growth also slowed but remained above the long-term average. These trends made it easier for companies to manage their expenses and hire more workers.
Naif Al-Ghaith, Chief Economist at Riyad Bank, said the growth in jobs supports the national employment plan. Saudi Arabia wants to lower its unemployment rate among citizens to 7%. Saudi hiring growth plays a key role in reaching that goal.
The country’s PMI score in March was 58.1. This number shows strong business activity, even though it dropped slightly from February. High PMI levels signal rising sales and growing confidence among companies.
However, there are challenges ahead. The United States introduced a 10% tariff on Saudi goods. On April 6, the Saudi stock market dropped by nearly 7%. That was the largest fall in five years. Falling oil prices also added pressure. A barrel of Brent crude traded around $64 during the same period.
Still, strong domestic demand gives hope. Companies are adjusting by cutting prices and improving marketing. Saudi hiring growth could continue if demand stays steady and costs remain low.
