UAE job losses set to continue amid recovery - analyst

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JOB LOSSES: More redundancies will be made in the UAE even as the economic recovery begins, says Standard Chartered. (Getty Images)

Job losses will continue to take place in the UAE even as economic recovery takes hold, a leading economist in the region warned on Monday.

Further redundancies would happen in the Gulf state over the coming months because the jobs market lagged behind the real economy, said Marios Maratheftis, chief economist at Standard Chartered in the Middle East.

“Inevitably job losses are taking place and, in my opinion, they will continue to take place even as the economy is recovering because the jobs market is a lagging indicator of the economic cycle,” said Maratheftis during MegaTrends, Essential Strategic Insights 2009 in Abu Dhabi.

Despite the economic crisis hitting the UAE in September, it wasn’t until January that staff numbers were cut by many firms, especially those in the real estate, construction and banking sectors, he said.

But he said most job cuts had already taken place.

As many as one in four expatriate employees in the UAE have either lost their job or fear they will over the next 12 months, according to a survey released in March by market research company Real Opinions.

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READERS' COMMENTS

Rightly said MN
Posted by donjuan, AUH, uae on Wednesday 27 May 2009 at 08:28 UAE time


The unqualified western expats will become the biggest liability in this recession.When you do a cost benefit analysis you will know the ground reality.Among them the university degree holders are also less, with high school diplomas they get plump jobs with 5 fiqure salaries. NOW the time has come to do strict cost/benefit analysis and to know people who create REAL WEALTH.

One in four expat lost their jobs
Posted by mn, dubai, uae on Tuesday 26 May 2009 at 17:26 UAE time


The scariest part is that unqualified european expats are the only ones to keep thier jobs. As the going gets thougher, these companies will learn the hard way that the german & french they have kept, mistaking their nationality as sign of efficiency, will not be able to cope and further drive the busniesses into disaster. When will the Dubai companies learn to recruit people based on skills and not nationalities. I believe that Dubai is yet to suffer the worst on the hands of these mediocre europeans.

Sad Reality
Posted by kbhatia, Dubai, UAE on Tuesday 26 May 2009 at 12:44 UAE time


I think if major companies start gearing up & think of just breaking even this year, the redundancies would be a lot more lesser..I am just another victim of the recession & hope things improve @ the earliest.

Thats the reality
Posted by donjuan, AUH, uae on Tuesday 26 May 2009 at 08:46 UAE time


Now the truth is coming out. The ground reality is more frustrating. Iam also on the brink of losing job. I met other jobless people while attending some interviews every body is on their company visa with no pay and asked to look for employment. I would say the current unemployment is around 20-30% in UAE. .I HOPE THINGS WILL IMPROVE SOON.

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