More jobs expected as Expo 2020 draws closer

6 in 10 companies in UAE expect more jobs in next 6 months

Although oil-dependent economies are expected to feel some effects of declining fuel prices, more vacancies await jobseekers in the UAE and the rest of the Middle East in 2015, with about six in ten employers (63 per cent) expecting more job openings in the next six months.

In NaukriGulf’s Hiring Outlook Survey 2015, which polled 355 companies and recruitment agencies in the region, both employers and headhunters agree that this year’s employment outlook is much better than last year’s, as Expo 2020 is drawing closer.

The International Monetary Fund (IMF) had earlier predicted that the UAE economy would expand by 4.5 per cent this year, but it later revised the forecast down to 3.5 per cent, following the persistent drop in oil prices.

“Lower oil prices have weakened the external and fiscal balances of oil exporters, including members of the Gulf Cooperation Council (GCC),” IMF said in its report in January.

However, according to the latest employment survey, about 63 per cent of organisations and 93 per cent recruitment agencies in the region expect new jobs to be created in the next six months. Only a small portion, 12 per cent, of all the respondents expect no hiring, while 2 per cent expect some layoffs.

Among those who will be hiring, the majority will be seeking candidates with three to eight years of work experience, while those with one to three years of work experience are the second most in demand.

Employers that are in the construction, engineering and hospitality sectors are the most bullish about new job opportunities, although 53 per cent of the headhunters still expect the bulk of the jobs to be created in the oil and gas industry.

“As far as job creation and hiring scenario is concerned, 2015 will be a much better year in comparison to 2014 given the build-up towards Expo 2020, influx of capital and increased focus on infrastructure development,” said Tarun Aggarwal, business head, Naukrigulf.com.

Aggarwal said most of the jobs will be created in the construction and manufacturing sectors, as well as in oil and gas industry. Companies in the information and technology, hospitality and retail will also be expanding their payrolls.

“As with a booming economy, the phenomenon of job creation will be led by the construction and manufacturing sectors, with even oil and gas, and hospitality sectors showing healthy signs,” Aggarwal said.

The hiring outlook study is a half yearly survey that measures the hiring sentiment of companies and professional headhunters in the region.

Some oil and gas companies in other countries outside the Gulf had earlier let go of a number of their employees as they struggle with the impact of low oil prices. Baker Hughes, an oilfield services provider, had announced plans to lay off 7,000 employees, or about 11 per cent of its staff.

Another US-based oilfield services company, Schlumberger NV, also said it would terminate the services of 9,000 employees, as the number of land rigs in the US dropped by 15 per cent over the course of two months.

Oil prices have dropped by more than 50 per cent since September 2014. The IMF, however, predicted that prices are expected to partially recover over the medium term because of the likely decline in investment and future capacity growth in the oil sector in response to lower oil prices.