The UAE job market is witnessing a significant influx of expatriates moving to the country without a job secured, with 49% of UAE employers noting this trend. Many expats used to come to the UAE on visit visas in search of employment opportunities, with only those lucky enough to find a job being issued employment visas. However, the announcement of a job exploration visa by the UAE government in October 2022 opened up opportunities for individuals to search for jobs in the country, leading to an increase in expatriate arrivals.
The UAE offers attractive benefits such as good weather, tax-free earnings, and a multicultural lifestyle, which is attracting expats in large numbers. With the availability of expat workers, 52% of UAE employers are receiving more job applications per role compared to a year ago. Employers are also benefiting from unemployed expats willing to accept lower pay to secure a job, making the hiring process faster and more convenient for businesses.
Despite the abundance of talent, some UAE employers are facing challenges in finding workers with the required skills. While 71% of hiring managers agree that it has become easier to attract workers to their organisations in the past year due to the influx of expats, many businesses are struggling to find skilled talent. This highlights the importance of businesses weighing the skills they need against the cost, as hiring cheaper options may not always lead to successful outcomes in the long run.
Many organisations in the UAE are still grappling with the issue of skill shortages, with highly skilled talent commanding higher salaries. This has led businesses to opt for cheaper alternatives, which may not always meet their requirements. As a result, it is crucial for business leaders to assess the significance of the skills they need against the cost implications to avoid impediments to growth caused by a lack of talent. Despite the challenges, 72% of UAE employers are planning to make new hires in the next six months, citing business growth as the main reason for their hiring intentions.
The UAE has experienced a surge in its population over the past few years, driven by the country’s strong macroeconomic growth and various sectors witnessing expansion. This growth has led to an increase in expatriates coming to the UAE in search of better opportunities. While the influx of expat workers has made hiring easier for some employers, finding talent with the required skills remains a challenge for many businesses. In light of this, it is essential for organisations to prioritize skill requirements and assess the importance of securing the right talent for sustained growth and success in the competitive UAE job market.
