Saudi Arabia is now in a better position to confront unemployment challenge, thanks to its strong economic growth that would enable the country to create more jobs for its citizens, the International Monetary Fund said on Thursday.

“A large number of young people will enter the labor market in the next decade and beyond, and creating a sufficient number of rewarding jobs for them in the private sector will be a challenge,” the IMF said in a report.

The fund said recent history shows the private sector may not be able to absorb all the new job seekers. While total employment in the country has grown 8.5 percent from 2010 to 2012, employment among Saudi nationals has risen only 4.6 percent.

It also called on Saudi Arabia to address high unemployment among youth and educated women, which is higher than in other countries with similar incomes.

Unemployment among Saudis is now 12 percent, but it is 30 percent for youth and 35 percent for women.

Central bank statistics from 2011 showed nine in 10 working Saudis were employed by the public sector, which is largely funded by oil revenue.

The IMF said reducing reliance on public sector jobs must be a priority, which means Saudi nationals must become more competitive and improve their skills.

Saudi Arabia has more than nine million expatriates whose remittances home provide important revenue for countries including Yemen, India, Pakistan and the Philippines.

Most of those expatriates work in the private sector, in retail and construction, jobs that Saudis may not want or have the skills for, the IMF said.