The Emirati public sector employment market is reaching “saturation point” and more steps are needed to push UAE nationals into the private sector, according to a new report.
The study by researchers from United Arab Emirates University (UAEU) urged government to focus on educational reform and the subsidisation of private sector wages rather than Emiratisation quotas, UAE daily The National reported on Sunday, citing the report.
It said the state can no longer act as an employer of first and last resort, adding that the government should concentrate on diversifying the economy and subsidising the salaries of Emiratis in the private sector.
In April, it was reported that 60 percent of UAE nationals working in the private sector resigned from corporate positions due to a lack of career progression.
According to the Emirates National Development Programme (ENDP), while there has been an increase of Emiratis working in the private sector since the establishment of the Emiratisation programme, retention remains a serious issue.
Concern has also been rising over Emirati unemployment, which has reached 14 percent in Abu Dhabi.
“There is a growing realisation within the region that public sector bureaucracies have reached the saturation point. They can no longer act as an employer for first and last resort,” the study, cited by the National, said.
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