The low price of oil is having a negative impact on the number of job seekers in the UAE, according to a new report.
The Morgan McKinley UAE Quarterly Employment Monitor report shows that the number of professional job seekers in the first half of 2015 has declined 6 percent to 38,100.
The cost of living and doing business in the UAE as well as the low price of oil were the factors put forward by Trefor Murphy, the managing director for the Middle East and North Africa at Morgan McKinley.
“The number of job seekers has decreased; this is quite worrying as there are many other options available for them - if you look at the employment market in the UK, Ireland, America, Australia and Asia, there is no need to come to the UAE anymore and yet two years ago everyone was looking to work in Dubai,” he said.
“The market has stabilised over Q2 2015, but without any real growth in the overall professional hiring market. The oil price went back up to $60 per barrel toward the end of the quarter, but it needs to go up by a further $5-$10 a barrel to make new drilling and exploration projects viable,” he added.
Murphy said the summer months, when expats generally go on holidays, and Ramadan were also reasons for the tail-off in the employment market growth.
Despite the recent slowdown in the employment market, Murphy said he expects the professional recruitment market will see a 5 percent to 10 percent growth rate per quarter for the rest of the year, based on a stability in oil prices.
He said in spite of the slight drop in growth, the FMCG, pharmaceutical, medical device, hospitality, airline and tourism sectors have been quite busy in spite of the seasonal slowdown in the market.
“The property market is growing by 10 percent, which is strong as an individual sector, and manufacturing is growing by 6 percent while banking is seeing 3-4 percent growth,” he said.
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