Economic diversification is defined as the diversity of goods and services produced at any economy. The economic diversification is a significant issue for many developing countries, particularly for those countries which traditionally relied heavily on the production of primary commodities. Economic diversification is also looked as a means to reduce economic risks. The present article can be seen in the analysis of the effects of economic diversification on the diversification of job opportunities, especially for university graduates. The aim of this paper is to study the impact of economic diversification on the graduate's employment rate in Saudi Arabia during the period 2005-2016. The results show that successful economic diversification contributes positively to job creation. Moreover, The Saudi Arabia case study shows that the actual economic diversification level of the kingdom is low regarding the creation of new job opportunities, especially for the bachelor's degree holders. Accordingly, the Saudi government needs to raise its level of economic diversification so that it can create graduates' opportunities for jobs.