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Covid-19 vaccines in UAE: Dubai job market stabilises in November

Dubai - The vaccine will allow increased mobility of people, analysts say

The Dubai job market has stabilised with job cuts easing in November, as the emirate will be one of the major beneficiaries from the distribution of Covid-19 vaccines, analysts said.

The arrival of the vaccine will allow increased mobility of people as well as higher inflow of foreign travellers into the country, giving key sectors of the emirate — such as travel, tourism, trade, hospitality, retail and real estate — a welcome boost. These were among the worst-hit sectors of the economy due to Covid-related lockdowns and restrictions on the movement of the people.

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“Dubai’s economy is likely to be one of the region’s main beneficiaries from the distribution of Covid-19 vaccines, (and) will probably help to put a floor under property prices,” said James Swanston, economist for Mena region at Capital Economics.

According to the latest PMI data released by IHS Markit on Monday, job cuts eased in November to the weakest seen in the nine-month downturn.

David Owen, economist at IHS Markit, said the news about effective vaccines could restore long-term optimism, as firms are likely to place greater hopes of a strong recovery in 2021.

"Job numbers were stabilising in November, to signal that the impact of cost-cutting efforts on payrolls has started to ease. However, a possible hit to demand from falling customer numbers or renewed lockdown measures could lead to another setback for employment in the short-term," he added.

The latest PMMI data also showed that businesses in Dubai saw a renewed fall in activity in November. Growth in new work eased to the weakest seen in five months, leading to a solid reduction in output.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) posted at 49.0 in November, the lowest recorded since May. Falling from 49.9 in October, the reading signalled a quicker — but still marginal — decline in operating conditions.

waheedabbas@khaleejtimes.com