The UAE’s ongoing mega-projects have seen an increase in demand for blue-collar workers, while there has been a decline in white-collar recruitment, according to Innovations Group.
The recruitment and staffing company recently released its report titled “Workforce Trends and Market Insights”, which highlights the prevailing trends in the UAE job market.
The UAE government’s focus on economic diversification and infrastructure development is leading to a boom in the industrial sector and driving a significant influx of new businesses across industry verticals.
UAE recruitment
The report reveals that the UAE job market has been experiencing a significant surge in demand for both blue-collar and entry-level jobs, although white-collar recruitment continues to show a downward trend.
Blue-collar jobs have grown by 69 per cent in 2024, primarily due to the ongoing mega projects in both residential and industrial construction.
Record high levels of off-plan residential sales have peaked construction activities, driving a spike in demand for construction workers.
Additionally, geo-political instabilities in the Middle Eastern region have led to redirection of cargo through ports in the UAE, leading to increased operational and management (O&M) activities.
This has benefited job opportunities in the logistics and port management sectors.
However, overall blue-collar hirings declined by 21 per cent in 2024, despite the rising number of open positions, which indicates challenges in terms of mobilisation and skill matching.
The white-collar job market in the UAE, however, has seen a slight decline. Hirings were down by 21 per cent in 2024 although both job categories and the total number of open positions showed a modest increase.
The focus of companies in centralising their support functions, such as customer service and finance, in offshore global hubs outside the UAE are contributing to this downturn.
However, sales and business development positions remain in high demand due to their crucial role in driving growth for startups and new companies entering the UAE market.
Although companies continue to face challenges in sourcing talents for such positions with the right mix of market knowledge, network, and competitive incentives.
Demand for workers at entry-level positions, like receptionist and front-office staff, have also risen with the increasing establishment of new businesses in the country.
The proliferation of entry-level positions reflects the UAE’s economic momentum, with increased demand for foundational staff to support new commercial ventures.
Nikhil Nanda, Director at Innovations Group, said: “The UAE is a dynamic hub offering a pool of skilled workforce. It is important for specialised recruitment agencies to develop strategic approaches to address hiring challenges and skill mismatches.”
Looking ahead to 2025 and beyond, a few key trends will shape the future of the job market in the UAE.
The UAE has been a leader in embracing remote work, especially since the COVID-19 pandemic. This trend is likely to continue in 2025, with more organisations adopting flexible work arrangements, including remote and hybrid work models.
The adoption of remote work will enable companies to expand their talent pools beyond geographic boundaries, encouraging companies to explore options in recruiting candidates from across the globe.
Organisations must adapt their policies and work culture with care to fully leverage the benefits of remote and hybrid work models.
The rapidly advancing AI technologies are also poised to transform the recruitment process. AI tools will continue to be leveraged at work, with 74 per cent of professionals in the MENA region agreeing that AI tools can help them do their job better.
AI advancements have the potential to revolutionise the entire recruitment process, by automating tasks like resume screening and interview scheduling, improving candidate sourcing, and reducing bias through data-driven decisions.
By improving efficiency, personalisation, and fairness, AI solutions will continue to transform the way organizations find, attract, and hire talent.
Another trend rapidly gaining momentum is skills-based hiring, with emphasis on the specific skillset and abilities of candidates instead of traditional markers like educational qualifications.
By prioritising the abilities and skills of candidates over traditional differentiators like degrees or career paths, organisations can tap into a much wider and more diverse talent pool, while fostering innovation and work culture.
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