Dubai: Although companies are still facing some challenges, recruitment activity across the country has picked up a bit, while only a few have implemented some layoffs this year, according to the latest research.
Things are expected to improve towards the end of the year and beginning of next year, with the implementation of policies governing inflation, diversification and commodity pricing, and the expectation that the UAE economy will grow by 2.4 per cent in 2016 and 2.8 per cent in 2017.
Social recruitment platform Bloovo has surveyed 54 organisations in the UAE to look into the dynamics of recruitment and compensation in the country.
Among those polled, 63 per cent of the employers said they intend to recruit new staff for a few positions in the next six months. Some 12 per cent said they are hiring actively for multiple roles, while another 15 per cent are filling only replacements.
“Based on our own research, there was an increase of around 4 per cent in hiring in the last quarter of 2015 compared to the third quarter of 2015, and the same is to be expected for this year,” Ahmad Khamis, co-Founder and CEO of BLOOVO.com, told Gulf News
However, 17 per cent confirmed that they have trimmed down their workforce in 2016. The majority of the layoffs took place in the oil and gas and banking sectors, as well as in some “state-backed ventures.”
Experts said the number of companies implementing layoffs is negligible and is not a cause for alarm. Another 17 per cent of the companies did say that they haven’t implemented any job cuts in 2016 yet, but they might do so at the end of the year.
A number of organisations in the Gulf Cooperation Council (GCC) region have been hit by the decline in oil prices. Recruitment activity slowed down and layoffs were carried out as a result. But companies remain optimistic and recruitment specialists are saying that things are looking positive, as employers have hinted that they’re hiring again.
“The oil and gas sector has been without doubt the most talked about industry in 2016 with plummeting oil prices still fluctuating and a global oversupply remaining. Hiring has felt a definite bump in the road,” Khamis said.
“Even with the plateau of the economy and the reduction in government spending, companies are optimistic about the region’s growth prospects. There are definitely opportunities in the UAE and recruitment activity is expected to pick up towards the end of this year and beginning of next year.”
The majority of those who have hiring plans (39 per cent) are looking to add three to seven new employees, while a quarter intend to recruit between eight and 15 employees.
Khamis said the recruitment activity will mostly be in non-oil and non-financial industries, such as in information and communications technology (ICT), fast-moving consumer goods (FMCG) and retail sectors, among others.
“2016 has been a challenging year for SMEs. The overall sentiment among small businesses remains cautiously optimistic. Going into 2017, it will become increasingly important for SMEs to be flexible and adapt to the changing market environment.”… see more