Companies hired more workers in November – Survey

Kampala, Uganda | THE INDEPENDENT  | Companies hired more staff in the month of November as demand for their products increased, a new survey has shown.

The Purchasing Managers Index, published by Stanbic Bank and IHS Markit shows that the business environment improved to 58.6 points in November from the 56 in October. The index, which surveys managers of different companies, shows that improving demand for new orders, output and employment were noticed.

This is in line with the mood towards the Christmas period when the orders go up with people shopping for the festivities.

More orders mean that companies needed more workers to push up their output and respond to clients needs.  However, the hiring could be temporary with many of those hired during this season having to look for new jobs in January when demand is low.

Stanbic Bank Uganda’s fixed income manager, Benoni Okwenje, said “despite new business activity continuing to increase, companies were able to reduce backlogs of work by hiring more people. Employment has risen throughout the three and-a-half year survey history so far.”

According to the PMI report, most sectors have seen improved activity – including agriculture, construction, industry, services and wholesale & retail sectors all recorded higher activity.

The preparations for Christmas festivities have also seen prices of the most consumed products jump up, owing to either anticipated or the already realized demand.

According to the Uganda Bureau of Statistics (UBOS) November consumer price index (CPI), prices for alcohol, tobacco and narcotics increased to 2.1 percent for November 2019 compared to 1.6 percent recorded for October 2019.

Also, prices for footwear increased to 4.7 percent for November 2019 compared to 3.9 percent recorded for October 2019.

Some things saw their prices come down, especially furnishings, household equipment and charges for routine household maintenance, UBOS said.

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