Private Sector Hiring in Saudi Sees Biggest Surge Since 2011

Saudi Arabia’s non-oil private sector recorded its fastest employment growth in June since May 2011, according to the latest Purchasing Managers’ Index (PMI) data.

The PMI climbed to 57.2 in June, up from 55.8 in May, marking a three-month peak. New business volumes expanded, prompting firms to boost production and hire more staff. Competition for skilled professionals intensified, weaving upward pressure on wages - a trend that, in turn, fuelled higher production costs and led to elevated selling prices.

Purchasing activity also surged, reaching the highest level in two years as firms stocked up on inputs to meet their growing order books. Employment expanded sharply, representing the fastest increase since the PMI began tracking hiring data in 2009. Many companies reported increasing wages to secure the skilled staff they needed .