The Saudi employment sector in 2025 is in one of the most revolutionary periods in its history. With Vision 2030, the highly accelerated diversification efforts beyond oil, and heavy investments in new industries, employers as well as job seekers are encountering a dynamic environment of opportunities and challenges.
Two of the most prominent recruitment agencies, Michael Page and Hays, have released their 2025 Saudi Arabia Salary Guides, providing vital information on the state of hiring, salaries, and workforce expectations. In this blog, we will examine the main findings, compare the trends, and discuss their implications for professionals and organizations in the Kingdom.
Saudi Arabia’s Economic and Workforce Context
Saudi Arabia is no longer an oil-based economy. The Kingdom is becoming a global hub of innovation and talent, driven by ambitious reforms and significant investments in technology, renewable energy, real estate, healthcare, and the adoption of AI.
As it has been recently reported:
- The rate of employment of Saudis has been 93%, with a female employment level of 34.5%, which is higher than the national targets.
- The strong employment confidence has already led to a candidate-driven market where the professionals have been able to negotiate a better remuneration package, work flexibility, and progression of their careers.
- However, employers are facing difficulties in locating talent that possesses both technical and leadership competencies, and it is therefore an immediate necessity to upskill and reskill programs.
Michael Page Saudi Arabia Salary Guide 2025
The Michael Page Salary Guide 2025 mentions some of the significant changes in the Saudi job market.
Key facts Michael Page:
- Inclusion and High Employment
- 93 per cent employment rate among Saudis.
- It has a 34.5 percent female workforce participation, indicative of increasing diversity in male-dominated sectors.
- Most Popular Sectors to strata
- The most rapidly-developing industries are Technology, Renewable Energy, Healthcare, and Real Estate.
- The digital transformation and green economy projects are generating thousands of new jobs.
- Skills Gap Challenge
- A majority of employers cite skilled talent as their biggest personnel acquisition challenge.
- Highly specialized technical skills and leadership training are desired.
- Salary Growth
- In 2025, 79 percent of the companies will have to raise wages to make them competitive.
- Pay rise constitutes a component of broader retention initiatives other than recruitment incentives.
- Candidate Priorities
- Individuals in the job market are giving preference to organizational culture, flexibility of work, and career growth opportunities rather than a salary.
- This change follows the trend around the world that workplaces are changing, with the employee experience being as crucial as the financial rewards.
Hays Saudi Arabia Salary Guide 2025
The Hays Salary Guide 2025 is an addition to the findings of Michael Page, offering a new perspective on the information.
Key Things to Take Away According to Hays:
- High Hiring Dynamic
- In 2025, 79 percent of employers are going to hire permanent employees.
- It shows a long-term belief in the economic progress of Saudi Arabia.
- Employee Mobility
- Two-thirds of the professionals are willing to switch companies, and this indicates a very competitive job market.
- Job change is at its peak with greater opportunities.
- Salary Expectations
- 81 percent of the employees anticipate pay raises, with a majority of 6-10 percent.
- Represents increased confidence and more bargaining power among workers.
- Reasons for Job Switching
- The leading motivators are low pay, lack of career advancement, and inability to see growth.
- Employers must have a strong career development program to retain the best employees.
- AI Adoption
- Two-thirds of firms are currently promoting the use of Artificial Intelligence within their processes.
- This is a significant change to e-transformation in various sectors.
Comparing Michael Page and Hays: What Do the Reports Tell Us?
Although both reports identify a thriving job market in 2025, they are focusing on somewhat different things:
Michael Page focuses on employment rates, female engagement, and growing wages, which indicate a macro-level improvement in the Saudi Arabian labor market.
Hays also touches upon employee expectations, job-hopping tendencies, and AI applications, which portray the micro-environmental aspects of workplace situations.
Collectively, this is a good indication that Saudi Arabia is shifting into a candidate-driven market, where job seekers have more leverage, and companies will have to adapt to retain top talent.
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What This Means for Employers in Saudi Arabia
To employers, the message couldn’t be more obvious: Pay will not win the war for talent. Companies must:
- Provide competitive remuneration that is in tandem with the market rates.
- Develop an adaptable working culture to promote hybrid and remote working.
- Develop career progression with apparent advancement opportunities.
- Invest in training to address the technical skills gap.
- Offer benefits that are purpose-driven and are aligned with employee values.
Employers who are unable to adjust often lose their best-performing employees to other companies that offer more comprehensive benefits.
What This Means for Job Seekers in Saudi Arabia
For professionals, 2025 presents a significant window of opportunity to develop a career in high-growth sectors. To increase success
- Emphasize upskilling in technology, AI, and leadership.
- Targeted industries that go along with Vision 2030, including renewable energy and healthcare.
- Don’t just use salary as a deciding factor-also look at the company culture, growth opportunities, and long-term career visibility.
- Use the candidate-driven market to bargain over better remuneration packages and benefits.
With the proper skills and attitude, professionals can find a job that is not only financially rewarding but also gratifying in terms of career development.
A Transformative Job Market in 2025
Saudi Arabia’s labour market and salary trends in 2025 are part of a rapidly changing employment environment driven by diversification, digitalization, and inclusive workforce policies.
- Employers will have to re-strategize on how to attract and retain talent.
- Job seekers are advised to take advantage of high-growth industries.
- Reports by Michael Page and Hays will be the primary sources of information one can follow when entering the Saudi job market.
The story of the Kingdom as it changes under Vision 2030 is not only reforming its economy, but also its careers. As an HR leader, employer, or professional, staying up-to-date with salary benchmarks and hiring trends in 2025 is crucial for making informed decisions.
