ZCZC
BCN-26
UAE-LABOUR-MARKET
UAE’s labour market fails to pick up despite rebounding non-oil private
sector
DUBAI, Oct. 4, 2018 (BSS/Xinhua) – The employment index in the United Arab
Emirates (UAE) remained below 50 for the second consecutive month, despite an
increase in the NBD Purchasing Managers’ Index (PMI), said bank Emirates NBD
Wednesday.
The PMI, which measures activities in the non-oil private sector, stood at
a bullish level of 55.3 in September, the third month in a row with a reading
at the 55-handle, said NBD in a statement.
Although output and new work rose sharply in September, supported by
growth in export orders, “employment remained below the neutral 50-level for
the second consecutive month,” said the statement.
The index of an expanding economy usually stands above 50, while a reading
below 50 indicates a contracting economy or economic sub-sector.
“The majority of firms reported no change in employment in September but
nearly 2 percent of firms reported a decline in jobs. Staff costs (a proxy
for wages) were also largely unchanged last month,” said Khatija Haque, head
of the Middle East and North Africa Research department at Emirates NBD.
“Year to date, the PMI averaged 55.7, similar to the same period last
year,” he added.
On Jan. 1, 2018, the UAE and its major trade partner Saudi Arabia
introduced a 5-percent VAT on most products and services, which lifted
purchasing and administration costs in the Gulf state, affecting margins and
the investment climate.
Earlier in the week, the International Monetary Fund (IMF) said it is
optimistic about the UAE for 2019 as oil prices rebounded to a four-year high
above 80 U.S. dollars per barrel (159 liters) last week.
The UAE government announced on Sunday the biggest federal budget ever of
16.4 billion dollars for 2019, representing a 17.3-percent increase from the
current year.
With oil production and government spending set to rise, overall growth is
projected to strengthen to 2.9 percent this year and 3.7 percent next year,
said the IMF.
BSS/XINHUA/HR/1215