Introduction

• This research study is intended to provide an overview of key employment and recruitment trends in the Gulf region since the start of the international financial crisis, and to give an indication of how the labour market is likely to evolve going forward.

• The study is aimed at corporate decision makers, government authorities as well as professionals employed or interested in working in the region.

With fewer opportunities and rising concerns about job security, staff turnover has fallen significantly across the region

• Job search has become much more challenging

• Concern about the risk of ‘last-in first-out’ in the event of downsizing

• Concern that any sign of disloyalty to existing employer may lead to loss of position

Impact on Recruitment

A tendency to hold on to secure jobs, rather than actively searching for better opportunities – except when the employer is believed to be in financial trouble

The downturn has reduced recruitment activity by employers, as well as changing the way it is conducted

Impact on Recruitment

• Volume: Reduced recruitment

• Channel: Shift to lower cost recruitment channels (e.g. online)

• Approach: Shift from public advertising of jobs to headhunting / database search – in order to discreetly target high-calibre passive candidates

Employer Perspective

• Headcount growth targets low or negative

• Lower staff turnover / Higher retention

• Reduced recruitment budgets

• Increased demand for cost transparency

• Much higher calibre of candidates expected

• Concern that ‘active’ jobseekers may be ‘underperformers’ expecting imminent redundancy

• Concern that visible hiring activity may complicate internal communication of staff cuts

Summary

• With the global recession and the fall in oil prices, most Gulf countries are expected to have limited economic growth in 2009.

• Many companies in the region have responded with staff cuts and recruitment freezes, with professionals in investment, administration and marketing functions most affected. Demand for infrastructure and audit professionals has increased.

• The UAE, and Dubai in particular, has seen its share of vacancies fall, with some residents seeking opportunities in other Gulf states. However, it still has significant recruitment levels and remains the region’s most popular destination.

• Limited pay increase is expected in the near term, due to falling inflation, reduced demand, rising global unemployment and strength of the US dollar.

• Economic growth is expected to recover in 2010, with employment activity gaining momentum as a result, but in the long run remaining dependent on the oil price.