Gulf nations' job markets improve despite crisis
The job market in Gulf countries are improving despite the global economic slowdown, a survey undertaken by an online recruitment portal in the Middle East that was cited by the Philippine government said.
The GulfTalent.com survey, cited by the Philippine Overseas Employment Administration, covered Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates for the period 2009-2010.
The survey showed that despite the salary growth slump in the Gulf Cooperation Council (GCC) countries, the average pay rises have for the first time exceeded the increase in the cost of living.
As a result, many residents, including foreign workers, have seen an improvement in their quality of life and saving potential, particularly in Dubai and Doha where rents have fallen by over 30 percent.
There has also been a gradual move in the region towards greater legal rights and protection for employees, as more countries made it easier for employees to switch jobs, and new labor laws have been passed into law or are under review with more pro-employee provisions.
However, further job cuts may still be likely in the future but at a slower pace than has been witnessed over the past 12 months.
The survey estimates that half of the companies are expected to create new jobs to compensate for the ones being lost.
But there are setbacks in the one-year period, the survey notes.
Recruitment has slowed down significantly across the Gulf, most notably in Dubai, in light of its higher exposure to credit financing and global markets.
A significant slump in the salary growth was also noted across the region, with base salaries rising at an average rate to 6.2 percent over the 12-month period to August 2009, compared with 11.4 percent for the same period in 2008.
The biggest average pay rise was recorded in Oman at 8.4 percent, followed by Qatar, Saudi Arabia and Bahrain at around 7 percent.
The UAE and Kuwait stood at the bottom with 5.5 percent and 4.8 percent, respectively.
In terms of industries, the audit sector had the highest average rise, as demand for audit services surged after the high-profile collapse of major global institutions.
According to the survey of employers, the GCC average pay rise in 2010 is expected to stand at 6.3 percent.
Also, 10 percent, or one in ten professionals, lost their jobs based on the survey as many companies cut staff in 2009.
This was highest in the UAE at 16 percent and, on a sector basis, in real estate at 15 percent.
The disparity in the economic conditions of the different countries has meanwhile led to increased mobility across the region.
In particular, a sizeable number of expatriate professionals have relocated from Dubai to Abu Dhabi and Saudi Arabia to take up employment opportunities there.
Nonetheless, Dubai still remains the region’s most popular destination for expatriates and is likely to get back much of the talent it lost as soon as an upturn emerges.
Based on data from the Philippine Overseas Employment Administration as of 2008, over 60 percent of the total 974,399 land-based overseas Filipino workers (OFW) are deployed in the six GCC countries, accounting for 616,289 Filipino workers.
Remittances from OFWs in the six GCC countries also reached $2.5 billion in 2009, which is about 15 percent of the total $17.3 billion in remittances for that year.
Of the six countries, only Kuwait registered a decline in OFW remittances, down to $104 million in 2009 from $125 million in 2008. - RJAB Jr., GMANews.TV
The GulfTalent.com survey, cited by the Philippine Overseas Employment Administration, covered Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates for the period 2009-2010.
The survey showed that despite the salary growth slump in the Gulf Cooperation Council (GCC) countries, the average pay rises have for the first time exceeded the increase in the cost of living.
As a result, many residents, including foreign workers, have seen an improvement in their quality of life and saving potential, particularly in Dubai and Doha where rents have fallen by over 30 percent.
There has also been a gradual move in the region towards greater legal rights and protection for employees, as more countries made it easier for employees to switch jobs, and new labor laws have been passed into law or are under review with more pro-employee provisions.
However, further job cuts may still be likely in the future but at a slower pace than has been witnessed over the past 12 months.
The survey estimates that half of the companies are expected to create new jobs to compensate for the ones being lost.
But there are setbacks in the one-year period, the survey notes.
Recruitment has slowed down significantly across the Gulf, most notably in Dubai, in light of its higher exposure to credit financing and global markets.
A significant slump in the salary growth was also noted across the region, with base salaries rising at an average rate to 6.2 percent over the 12-month period to August 2009, compared with 11.4 percent for the same period in 2008.
The biggest average pay rise was recorded in Oman at 8.4 percent, followed by Qatar, Saudi Arabia and Bahrain at around 7 percent.
The UAE and Kuwait stood at the bottom with 5.5 percent and 4.8 percent, respectively.
In terms of industries, the audit sector had the highest average rise, as demand for audit services surged after the high-profile collapse of major global institutions.
According to the survey of employers, the GCC average pay rise in 2010 is expected to stand at 6.3 percent.
Also, 10 percent, or one in ten professionals, lost their jobs based on the survey as many companies cut staff in 2009.
This was highest in the UAE at 16 percent and, on a sector basis, in real estate at 15 percent.
The disparity in the economic conditions of the different countries has meanwhile led to increased mobility across the region.
In particular, a sizeable number of expatriate professionals have relocated from Dubai to Abu Dhabi and Saudi Arabia to take up employment opportunities there.
Nonetheless, Dubai still remains the region’s most popular destination for expatriates and is likely to get back much of the talent it lost as soon as an upturn emerges.
Based on data from the Philippine Overseas Employment Administration as of 2008, over 60 percent of the total 974,399 land-based overseas Filipino workers (OFW) are deployed in the six GCC countries, accounting for 616,289 Filipino workers.
Remittances from OFWs in the six GCC countries also reached $2.5 billion in 2009, which is about 15 percent of the total $17.3 billion in remittances for that year.
Of the six countries, only Kuwait registered a decline in OFW remittances, down to $104 million in 2009 from $125 million in 2008. - RJAB Jr., GMANews.TV
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