Steep decline seen in Gulf recruitments
The economic downturn has considerably slowed down the recruitment activity in the GCC region, with Dubai in particular, witnessing a decline in number of vacancies advertised, although it still manages to retain a sizeable share.
Discreet and confidential recruitment methods, and shift to lower recruitment cost channels, are among the main trends, highlighted by the research report carried out by Middle East online recruitment firm, GulfTalent.com.
The research shows that the percentage of Dubai-based vacancies advertised on the firm's website was just 30 percent of all GCC-based positions advertised during the first half of the year, in comparison to 43 percent over the corresponding period in the previous year.
In contract, Abu Dhabi has seen a rise in its percentage of job vacancies from 14 percent to 23 percent.
Kuwait and Bahrain also have been affected badly. However, Qatar and Saudi Arabia have witnessed increases in their share of vacancies from 9 to 13 percent and from 15 percent to 20 percent respectively.
The UAE is likely to witness a rise in expatriate outflow, wherein 26 percent of all job applications submitted by UAE residents is for other GCC nations, compared to just 16 percent last year.
Across the region, the fall in demand was witnessed among investment professionals, private equity and portfolio management fell by 48 percent during first half of the year, compared to same period last year. Demand for administration skills fell by 47 percent, while demand for marketing skills fell by 46 percent.
However, the demand for infrastructure-related functions increased by 142 percent, owing to massive spending by GCC governments this year on road, railway and airport projects. Even demand for audit professionals increased by 25 percent.
Demand changes are based on the relative change in the number of CV searches conducted by employers and recruiters on the online database of GulfTalent.com. As for salary trends, the research report indicates that the value of expatriate salaries in the Gulf have increased sharply in terms of their home currencies. Based on the country of origin, the appreciation of dollar-pegged regional currencies over the past one year has been equivalent to an increase in pay by 10 to 20 percent.
The currency appreciation, together with low inflation, growing unemployment worldwide and low regional competition for talent has eliminated upward pressure on salaries, the findings reveal, suggesting that salaries will see only marginal increase over the next six to twelve months.
Posted on 13/7/2009