The jobs market in the Arabian Gulf is showing the chilling effect of the oil price crash, according to a new survey.
“Unquestionably there is a caution in the market that wasn’t present 12 months ago,” said Chris Greaves, the managing director at Hays UAE, which yesterday published its annual survey of jobs and salaries in the GCC countries.
Hays surveyed 2,400 employees and 200 employers in the region.
The mood in general is souring, the survey revealed. Hays said only 49 per cent of employers were “positive” or “very positive” about the outlook, compared with 69 per cent last year.
There were signs of a cooling labour market in terms of fewer firms hiring and wage pressure easing.
The survey found that 52 per cent of employers expected to increase their workforce this year, down from 74 per cent last year. And 61 per cent expected salaries to rise by up to 10 per cent, down from 88 per cent.
Employees were expecting pay rises to keep up with inflation but employers were generally reluctant.
Looking back over the past two surveys, Hays said that about 20 per cent of employees actually achieved a 10 per cent-plus pay hike, although for a third of them it required a job change.
Half of those surveyed said they had received some kind of pay rise last year, despite the economic impact of the oil price crash.
The survey showed employees were less willing to change jobs. This year, 57 per cent of employees said they would consider a job move, down sharply from 78 per cent last year.
In any case, less than half those saying they would change jobs actually do, so more people are staying put.
amcauley@thenational.ae
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