The rate of employment in the United Arab Emirates (UAE) jumped in April 2011, a new report claims.

According to a business activity measure for the jurisdiction, non-oil private sector companies recruited more members of staff during the month.

Employment growth was at its most rapid pace in 16 months, with job creation at a similar rate across all three sectors of the economy, boosted by higher buying rates.

In addition, the HSC Purchasing Managers' Index (PMI) for UAE reached its highest rate on record of 57.5 last month, signalling a revival of the non-oil sector during April.

Commenting on the data, HSBC chief economist for the Middle East and North Africa Simon Williams said: "There are still a lot of problems to address, but more than two years after the boom went bust, it's clear the new growth cycle is underway."

However, price pressure on businesses have increased, as demand levels continue to grow, while new export orders, purchases and input stocks have all expanded.

In related news, the recent Regional Economic Outlook for the Middle East and Central Asia from the International Monetary Fund predicted political unrest in the region could lead to job creation and "socially-inclusive" economic growth.

Posted by Lee Thrace