(Bloomberg) -- Saudi Arabia’s citizen unemployment rate fell to the lowest in more than three years as the kingdom’s non-oil economy gradually recovers from a slowdown.

Joblessness slipped to 12% in the third quarter from 12.3% in the previous three months, according to a summary of labor data published Sunday by the official General Authority for Statistics. Unemployment dropped for both men and women -- though Saudi female unemployment remains over 30% as more women enter the labor force seeking jobs.

Saudi Arabia’s unemployment is a key indicator watched by officials as they try to create jobs for nationals in a private sector dominated by foreign labor. Until now, improvements in the labor market have continued to lag a rebound in non-oil growth this year to the fastest since 2015, a reflection of the persistent weaknesses in business confidence that’s been made worse by a string of fiscal reforms such as new taxes and fees.

Joblessness among nationals has held at or above 12% for the past three years, especially testing the patience of young Saudis entering the labor market.

--With assistance from Sarah Algethami.

To contact the reporter on this story: Vivian Nereim in Riyadh at vnereim@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Paul Abelsky

©2019 Bloomberg L.P.