U.S. economy is improving. What about Saudi non-oil economy?
The labor market is strengthening considerably in the U.S. after the coronavirus recession. The increase in vaccinations, along with a decrease in the number of coronavirus infections, have bolstered the economy. Employment in the country is struggling to gain traction. However, the economy added 266,000 jobs in April after a significant increase of 770,000 jobs in March.
Chmura Economics & Analytics’ JobsEQ technology platform reported that job postings have been higher this year than last year since mid-March in the Richmond area. New graduates will have an easier time finding jobs. Currently, the strongest demand is for workers with skills in the broad areas of computer and math, healthcare practitioners, management, and business and finance.
Besides, some of the entry-level positions are in particularly strong demand. Some former employees who were laid off during the coronavirus crisis receive more income through unemployment benefits than they would on the job, and they prefer to remain unemployed currently.
Saudi non-oil economy began growing for the first time since the Covid-19 pandemic
Saudi Arabia’s non-oil economy grew in the first quarter of 2021 for the first time since the pandemic hit, even as oil production cuts pushed the overall economy into contraction.
The kingdom’s General Authority for Statistics released preliminary estimates on Monday. According to the report, the non-oil sector soared by 3.3% from a year earlier. The oil sector declined by 12%, the most in at least a decade, leading the overall economy to contract 3.3%.
Business in Saudi Arabia is gradually returning to normal after the twin crisis caused by coronavirus-related lockdowns and oil market turmoil. Consumer spending is recovering as well. Besides, officials said they would partially reopen the kingdom’s borders on May 17. According to the International Monetary Fund, the economy may grow 2.1% this year after decreasing by 4.1% in 2020.
OPEC and its allies began deep production cuts in May 2020 to steady crude prices, causing a large contraction in oil GDP. However, the situation is stabilizing.
