Hiring Trends in the Middle East

The job market is going to offer several benefits to job seekers in the UAE. Not only will the existing jobs offer higher pay packages, there will be creation of new jobs as well. A recent survey conducted by the leading job search portal Naukrigulf.com reflects buoyancy in the job market in the Gulf. As per the survey, which studied more than 230 recruiters based in the Middle East region, new jobs will be generated in high numbers in 2014. The recruiters reflected optimism in their response as over half of them expect to create fresh jobs soon. The results have been based on The Naukrigulf Hiring Outlook Survey 2014, a survey carried out twice a year for analysing the recruitment trends in the gulf region.

The Outlook

Time for job seekers to rejoice as there is a wind of change in the region, especially in the United Arab Emirates. One can expect new jobs and ample vacancies as a majority of the companies in the gulf are likely to add new jobs, providing a substantial boost to the job market. According to the Naukrigulf Survey, more than the 50 per cent participating recruiters said they see new jobs on the horizon. There is a canny similarity in this pattern with that of the previous year.

The outcome of this year’s survey is somewhat similar to the former survey carried out in July 2013. The previous study indicated that 64 per cent of the employers anticipated the generation of new jobs in the near future. In terms of industries, the number of optimistic employers expecting growth in jobs accounted for about 70 per cent in the oil and gas sphere, while this number stood at 58 per cent in Construction and Engineering. Similar figures are being anticipated for 2014 as well.

The Challenges

Even though the conditions for job seekers are set to improve, the employers are likely to face hard times due to some serious talent crunch. The shortage of skilled talent has been an ongoing problem in the Middle East. Nearly 56 per cent of the employers claim to face this problem this year. Not much has improved since last year as back then this figure stood at about 58 per cent, which shows only 2 per cent improvement over a period of one year.

It is also being said that from the available pool of talent, recruiters find it hardest to get Asians on board. Around 48 per cent recruiters who intended to increase their headcount said that Asians are the toughest to hire. This scenario is different from the one where Emiratis are being sought. Recruiters seeking Arab Nationals who face talent crunch stand only at 22 per cent.

The Availability

Nearly 51 per cent of recruiters stated that they shall be recruiting new personnel for 10 or fewer positions, about 16 per cent intend to appoint individuals for 11 to 20 jobs and 14 per cent of the employers expect to appoint candidates to fill up 21 to 50 vacancies in their organizations. Of the total respondents, merely 10 per cent recruiters declared that they are going to recruit staff for over 100 positions.

The change in scenario comes as the global economy is recovering. There has also been improvement due to the upcoming World Expo 2020. Dubai won the bid to host the prestigious event, which is positively affecting the recruitment community.

The Sectors and Industries

As per the sectoral breakdown of the report, about 70 per cent of the employers in the oil and gas sector are expecting to create new jobs in 2014, whereas this figure stands at around 58 per cent for employers in the engineering and construction sector.

The fresh jobs being created will highly depend on the level of work experience a candidate has. However, the introduction of new jobs is set to offer maximum benefits to the entry-level employees. The report states that fresh jobs will most likely be generated for young professionals with job experience of 1-2 years, while nearly 44 per cent of the total number of jobs will be for those with 4-8 years of work experience.

Travel and Tourism

According to a news report by Emirates 24/7, the travel and tourism sector is going to create as many as 523,000 jobs in UAE in 2014. In 2013, the sector was instrumental in adding nearly half a million jobs, while this year it is expected to create more opportunities.

A report by the World Travel and Tourism Council stated that the travel and tourism industry indirectly generated nearly 497,000 jobs last year, which was almost 9.1 per cent of the total employment. It also mentioned that this industry is booming and is expected to support an additional 26,000 jobs in 2014. On a total, tourism is set to offer a whopping 523,000 jobs this year.

The data reveals that the industry directly created 291,000 job positions in 2013, accounting for 5.3 per cent of the entire employment created in the UAE last year. The numbers are likely to increase further to 308,000 jobs, which will be directly supported by the industry.

The cosmopolitan city of Dubai, which is considered the UAE’s entertainment and commercial hub, individually received more than 10 million tourists in 2013 and intends to double to the number to 20 million by the end of the decade. The Expo 2020 is helping attract huge investments and will create thousands of openings over the next five-six years.

Till now, the industry has managed to garner Dh21 billion or $5.71 billion in investments. This implies a 6.2 per cent of the overall investments, which is now expected to grow to 9.7 per cent this year. In terms of contribution to the economy of the UAE, travel and tourism contributed Dh117.4 billion or $32 billion in 2013, constituting 8.4 per cent of the GDP. This is likely to rise by $1 billion in the current year.

With such distinct prosperity and boom in the region, one can only foresee growth and development in the job market of the UAE and other Middle East nations.