GCC hiring gains pace as non-oil sector expands

Employment levels picked up in Saudi Arabia, Kuwait and Qatar as the non-oil private sector expanded in March, according to the latest monthly business sentiment surveys by S&P Global.

Saudi Arabia recorded its best quarter for job creation in more than 12 years as hiring activity was driven by a demand upturn and output expansion.

“Rising employment rates are a direct benefit of businesses scaling up operations to meet demand,” said Naif Al-Ghaith, chief economist at Riyad Bank.

In Qatar, employment and wage growth remained strong as companies rebuilt inventories.

Although the employment growth rate eased from February’s all-time peak, it remained elevated in March, extending the current sequence of job creation to eight months, S&P said.

Kuwait also saw a renewed increase in employment in March as companies reported higher new orders and made efforts to complete projects on time.

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Non-oil Kuwaiti companies remained optimistic that output will increase over the coming year, with confidence hitting a three-month high in March, S&P said.

However, growth in the UAE’s non-oil private sector eased in March.

Despite the slowdown, businesses ramped up input purchases at the fastest rate since July 2019, aiming to clear backlogs of work. However, employment growth hit its weakest level in nearly three years as companies have struggled to find suitable candidates.