Private sector growth boosts UAE job market
The UAE’s private sector (excluding oil) grew at its fastest pace in two years in July, according to the latest Purchasing Managers’ Index (PMI) from IHS Markit.
The data showed firms continued to recruit, with the employment index hitting its highest level since January 2019.
The firms surveyed were optimistic about sustained output growth going forward, boosted by the easing of Covid-19 restrictions and the success of the vaccine roll-out programme.
Financial results for companies, including banks, for the first half of 2021 showed increased revenues and profitability.
Furthermore, the restarting of flights to the UK, Europe and the Indian subcontinent was a further cause for optimism, boosting demand in the hotel and hospitality sectors.
The PMI data also showed that orders are on the rise again, creating jobs at fastest rate since January 2019.
However, a shortage of raw materials caused by global supply chain disruption is increasing costs in some sectors, cutting the profit margins of some firms operating in the private sector.