Saudi non-oil economy sees fastest growth for 4 years
Unemployment in Saudi Arabia has continued to lag a rebound in non-oil growth this year to the fastest since 2015
By Arabian Business
The wait for new jobs in Saudi Arabia drags on even though its non-oil economy hasn’t felt better in years.
While business conditions in the kingdom’s non-oil private sector improved last month at the fastest pace since August 2015, employment gains were slower compared with September and average staff pay even showed a “marginal fall,” according to IHS Markit.
By contrast, IHS Markit’s Purchasing Managers’ Index for the neighboring United Arab Emirates was unchanged at its lowest level in almost a decade, but employment actually rose for the second consecutive month in October.
Unemployment in Saudi Arabia has continued to lag a rebound in non-oil growth this year to the fastest since 2015, a reflection of the persistent weaknesses in business confidence that’s been made worse by a string of fiscal reforms such as new taxes and fees.
Joblessness among nationals has held above 12% for the past three years, especially testing the patience of young Saudis entering the labour market in increasing numbers.“Firms operating in Saudi Arabia’s non-oil economy remained reluctant to take on additional staff,” IHS Markit said in the report. “According to anecdotal evidence, extra staff were recruited in order to fulfill company expansion plans.”
