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Economy

UAE’s private sector cuts jobs at fastest pace in a decade

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While economic growth in the UAE is expected to accelerate to 3.1 per cent this year from an estimated 2.9 per cent in 2018, softer oil prices and a weak real-estate market are putting pressure on jobs.

Tuesday 05, March 2019

(Bloomberg) --Companies in the UAE’s non-oil private sector are cutting jobs at the fastest pace in almost a decade as lower crude prices and a struggling property market dented business confidence.

The employment tracker in Emirates NBD Purchasing Managers’ Index fell to 47.5 last month, its lowest level since August 2009, according to a report compiled by IHS Markit for Emirates NBD. The PMI for the UAE fell to 53.4 per cent in February from 56.3 per cent in January, and was the lowest reading since October 2016.

According to Bank of International Settlements, real-estate prices in Dubai, the region’s trade and tourist hub, have fallen about 22 per cent since the end of 2014.

Almost nine per cent of businesses surveyed said they had lower headcount compared with January, it said. "Some firms reported operating with the minimum level of staffing in a bid to keep costs down," according to the report. "Staff costs were broadly unchanged last month, again reflecting a relatively soft job market."

TAGS : non-oil economy, Emirates NBD Purchasing Managers, PMI, IHS Markit, Job losses

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