September sees more new agreements, but companies prefer to keep expenses down.
In September, UAE businesses experienced the most substantial growth in new orders in four years, signaling positive economic activity. However, this growth was not mirrored in their approach to expanding their workforce.
Slow Hiring Due to Reduced Backlog
One of the reasons for the cautious approach to hiring was the fact that UAE businesses’ backlog of work increased at the slowest rate in two years.
This meant that they didn’t feel the immediate need to hire additional staff to manage the workload. This strategic decision has contributed positively to their bottom line.
Interest Rate Uncertainty
Businesses in the UAE are also closely monitoring the decisions of the US Federal Reserve regarding potential interest rate hikes.
The uncertainty surrounding interest rates is prompting businesses to exercise caution and preserve cash wherever possible. The rising interest rate costs associated with their operations are a significant concern.
Hiring Trends in Multiple Sectors
Several sectors in the UAE are opting for fewer hires as they approach the final months of the year. This approach may be linked to economic uncertainties and cost management strategies.
Confidence in the Private Sector
Despite the cautious hiring approach, confidence within the UAE private sector is on the rise. It has reached its highest level since March 2020, which notably predates the onset of the COVID-19 pandemic.
This suggests a positive outlook for the UAE’s economic landscape, even as businesses adopt conservative staffing strategies.
