UAE Becomes an Employers’ Market Amidst Influx of Talent

A recent study, the 2024 Salary Guide by Robert Half, has revealed that the UAE job sector has transitioned into an employers’ market due to an influx of talent. 

The study cites several factors contributing to this shift, including the appeal of the luxury lifestyle and conditions in the UAE, drawing more people to the country. 

Notably, Dubai’s population has grown by over 84,400 since January 2023, and the emirate witnessed a 63% increase in residency visas during the first half of 2023.

Key Findings from the Study:

1. The influx of Talent: The UAE is experiencing a surge in the number of people moving to the country, providing companies with a wider pool of candidates.
2. Changing Motivations: Candidates are now primarily motivated by stability and opportunities for career progression rather than solely focusing on increased salaries.
3. Lifestyle Appeal: The UAE has become a destination for many expatriates, with strong demand from individuals seeking a change of scenery and new opportunities.
4. Lower Salary Expectations: The heightened competition for roles and the willingness of candidates to accept lower compensation packages have contributed to a more competitive job market.
5. Impact on Salary Growth: The increased availability of talent has had the effect of restraining salary growth in a period of high inflation and rising costs.
6. Government Initiatives: The UAE government’s efforts to create a welcoming business environment attract companies to establish new offices or set up operations in the country, driving demand for talent across various sectors.
7. Economic Instability: Despite the increasing demand for talent, companies are exercising caution due to global and regional instability, leading some to postpone their hiring plans until they gain clarity on the future of the global economy.
8. Shift in Job Dissatisfaction: The study indicates that employees who have been in their roles for 3 to 5 years are the most likely to be dissatisfied, making them more inclined to leave their current positions. The 25-34 age group is among the most likely to change roles before the year’s end, and nearly 27% of those aged under 24 are mulling leaving their current jobs within the first three months of 2024.

The study underscores the changing dynamics in the UAE’s job market and the opportunities and challenges this presents for both employers and job seekers.