Political restiveness in the region did not deter job hiring activity in the Gulf and the Middle East, recruitment activity in the Gulf and Middle East rose in the last quarter despite the ongoing impact of the Arab Spring, Al Masah Capital said in a new study. It added that while the situation in the GCC was better with an unemployment rate of 4.2 percent, countries like Djibouti, Yemen and Libya have unemployment rates in excess of 30 percent, with "little relief in sight". "Despite the ongoing impact of the Arab Spring," the hiring levels increased by 21 percent to 67 percent of businesses in the Middle East and the Gulf taking on managerial and professional staff. The quarterly global survey of job trends across the world by recruitment firm Antal showed hiring levels were up by more than 20 percent since February. The survey asked over 12,800 organizations in 47 countries in major markets whether they were currently hiring and letting staff go at a professional and managerial level and whether they intended to do so over the coming quarter. Moreover, economic initiatives launched by several Gulf countries generated more jobs to their citizens. Aside from the $40 billion economic booster allocated by the Saudi government in 2011 from $36.7 billion in 2010, the Saudi Ministry of Labor has also introduced new measures to create more jobs for Saudis. Several companies made particular note of the hiring of locals – possibly reflecting the incentives offered by the new "Nitaqat" scheme recently announced by the Labor Ministry. Job creation was faster at large and medium firms than at small companies. The Saudi Labor Ministry Saturday said it will issue licenses to recruitment companies as part of the implementation of new regulations on job hiring. Preference will be given to existing recruitment agencies with paid-up capital of not less than SR50 million if the company intends only to recruit domestic workers, the ministry said in a statement released by the Saudi Press Agency. If the company intends to offer recruitment service to public and private sectors apart from recruitment of domestic workers, its paid-up capital should be at least SR100 million. Existing job recruitment agencies will be allowed to pool their resources together by forming a single company to meet the paid-up capital requirements, the ministry said. The Ministry of Labor has also called on all private establishments to rectify the professions of their workers over five days effective from Saturday (July 9). Saudi Labor Minister Adel Fakieh had hinted at introducing a carrot-and-stick approach for companies, an obvious reference to the Nitaqat program. He said those companies that achieve high-level Saudization would receive incentives and full cooperation from his ministry. The SABB HSBC Saudi Arabia Purchasing Managers' Index (PMI), which measures activity in the Kingdom's manufacturing and services sectors, rose to 62.8 in June from 62.6 in May. The seasonally adjusted index is holding well above the 50 mark that separates growth from contraction. The survey of more than 400 private companies, which started in August 2009, also showed new orders rising to 72.7 in June, their highest level in five months. Saudi non-oil private sector firms continued to recruit new employees in June, though at a weaker rate than in May. The Al Masah Capital study further said figures for the region compared well with the global average of 52 percent of organizations currently taking on staff although only 17 percent of firms worldwide said they were letting staff go. The most active sector in the Middle East and Gulf regions was retail, with 86 percent of organizations hiring and only 11 percent firing. "The last Antal International Global Snapshot indicated a long-anticipated return to stability in global markets," said Antal's CEO and chairman Tony Goodwin. A new report by Al Masah Capital said the Middle East's unemployment rate current stood at more than 10 percent, the highest in the world. The report said the jobless level in the Middle East was 10.3 percent while North Africa saw 9.8 percent of people out of work. Firing levels were up slightly to 28 percent, the survey showed, but are expected to fall again over the next three months to 19 percent.
