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Employment in Saudi Arabia Recovers at Fastest Rate in 3 Years

Employment in Saudi Arabia Recovers at Fastest Rate in 3 Years

Thursday, 4 August, 2022 - 09:45
The recovery of Saudi private sector business is reflected in increased job opportunities and lower unemployment rates. (Asharq Al-Awsat)

Saudi Arabia’s non-oil private sector witnessed a rise in the number of customers, production and sales, which led to the fastest increase in the employment level since September 2019.

In its latest report, S&P Global said the non-oil businesses continued to see a marked uplift in activity during July, although the rate of growth has slightly decreased from the end of the second quarter.

The report stressed that the expansion was mainly related to increased sales, new projects, and greater marketing.

Saudi Arabia’s Purchasing Managers’ Index (PMI) declined 0.7 points to stand at 56.3 in July, compared to 57.0 a year earlier, S&P Global said in its report.

Despite the decrease in the index, the latest reading indicates an improvement in business conditions for the 23rd month in a row.

In parallel, the General Authority for Statistics recently revealed a decrease in the unemployment rate to reach 11 percent during the fourth quarter of 2021, compared to the third quarter of the same year, which amounted to 11.3 percent.

On the other hand, the UAE PMI showed that the activities of companies operating in the non-oil private sector grew in July with the second fastest pace this year with the recovery of business activity, due to strong demand and higher sales amid some discounts.

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.4 in July from 54.8 in June, slightly lower than May’s 55.6 reading - the fastest pace of growth this year.

Egypt’s PMI index reached 46.4 in July, up from its two-year low of 45.2 in June. The improvement in the index was the biggest seen in just over a year, but it remained well below the 50 neutral mark.

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