UAE's private sector adds jobs at fastest pace since July 2016

Published November 3rd, 2022 - 02:30 GMT
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Dubai: The latest Purchasing Managers Index (PMI) data from S&P Global shows that the UAE’s private sector created new job at the "fastest pace since July 2016" as businesses added to their workforce on the strength of new orders/projects coming through, consolidating a strong finish to the year.

 

With bullish feedback about employment prospects sectors such as retail, travel services, construction all have seen - or will see - more recruitments in the near term, and with some increases on the pay scales UAE businesses should be better positioned to manage any further dip in global economic activity leading up to a recession after seeing the sixth straight month of new job creation.

 

"The upturn (in October) was led by sharp expansions in business activity and new orders, giving further evidence that domestic firms were not only weathering the global economic storms, but enjoying strong demand growth," said David Owen, Economist at S&P Global.

 

Lower global fuel and transportation costs were another major positive for businesses which saw "mild" inflationary pressures during the month as input costs rose only slightly. Businesses were able to lower their output charges, although the rate of discounting eased to the softest since July, Owen added.

 

The October PMI, which provides an insight into business activity over a month - based on key factors such as new orders won, the cost of operations, etc., was at 56.6. August's PMI stood at 56.7, the highest over the last three years.

 

Stocking up

"Firms also looked to stock up on inputs as they prepare work schedules to address their backlogs, leading to a rapid increase in purchasing activity that was the fastest for over three years," said Owen.

 

Offset inflation increases

Businesses are stocking up "to the greatest extent since mid-2019" with an eye on offsetting any near-term price increases, according to S&P Global.

 

New orders

New order inflows were up at a 'steep and accelerated rate', with firms posting the joint-strongest expansion for 11 months as new clients, lower prices, improved services and the upcoming FIFA World Cup in Qatar contributed to a rise in sales.


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