The UAE recorded faster hiring in November as companies in the non-oil private sector reported stronger output growth driven by rising orders, according to new PMI data released by S&P Global Market Intelligence on Tuesday. Firms said higher demand encouraged more recruitment and salary increases during the month.
What changed in hiring trends
Businesses noted that new orders climbed at the quickest pace since January. That surge pushed companies to expand hiring and raise pay scales to address skill shortages and cost-of-living pressures. The broader market saw output rise for the first time in nearly a year at such a pace, reflecting steady customer demand across key industries.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 54.8 in November from 53.8 in October. Readings above 50 indicate growth. The latest figure marked a nine-month high and aligned with company reports of robust pipelines and improved sales volumes. The new orders sub-index increased to 57.4 from 56.
Impact on hiring, wages and operating costs
The hiring upswing lifted employment to its highest growth rate in 18 months. Companies reported that wage adjustments became necessary as competition for qualified workers intensified. Operating expenses also rose at their fastest level in 14 months because of higher salary commitments and input costs.
Dubai-based firms noted the sharpest rise in input prices in six months and responded with higher selling prices. That combination of recruitment, wage growth and rising costs indicated a tightening labour environment across the non-oil economy.
Supporting data and market context
The PMI data highlighted consistent momentum in the UAE’s diversification push, supported by product innovation and broader market confidence. Dubai’s PMI logged 54.5 in November, helped by business activity in trade, tourism and services. Companies described a supportive backdrop that enabled higher hiring while managing rising cost pressures.
Outlook based on official indicators
S&P Global Market Intelligence said optimism improved from October’s recent low, reflecting expectations of steady activity. Companies expect current hiring, new orders and innovation efforts to sustain output in the near term, based on available data and pipeline visibility.
