The UAE has had the greatest rise in job creation in the previous six years, and the employment market is likely to continue to develop strongly in the next years.
This means that organisations may have difficulties in keeping talent owing to a scarcity of trained personnel. Experts forecast rapid growth in the UAE's employment market over the next five years and confidently anticipate that the UAE will continue to become a global focal point for growth and opportunity despite the increasing cost and challenges of finding and retaining talent.
According to S&P Global's UAE Purchasing Managers Index, the UAE witnessed the largest growth in job creation in the third quarter of 2022, with a 56% increase in new positions across non-oil industries (PMI).
New reports highlight new roles by stating that the new corporate tax legislation, which will take effect on June 1, 2023, would "substantially boost the necessity for tax experts and accounting professionals" in the nation.
The competition for talent intensifies
It went on to say that the market is now seeing an increase in the number of openings as well as a scarcity of qualified applicants.
The long-foretold 'great resignation and fight for talent' has become a reality.
Both organisations and employees must now find an acceptable middle between firms achieving profitable development and paying employees a fair market rate to prevent them pursuing other jobs.
Here are our predictions of significant themes that may affect the future of employment in the UAE in 2023.
#1 Organisations will use the metaverse and flexible work arrangements to expand the region's network of tech talent
The Middle East's technology sector is expanding at a rapid pace.
The UAE aims to make Dubai one of the top ten metaverse economies and a worldwide centre for the metaverse community. At the same time, it intends to more than fivefold its current number of blockchain enterprises. If these aims are met, the UAE would have created more than 40,000 virtual jobs by 2030, with a surge in recruiting activity projected in 2023
Looking beyond boundaries and providing remote and flexible employment is a possible solution to combat the surge in demand. If any major tech businesses call their workers back to work, organisations with more flexible rules might seek out to recruit people who may be considering leaving as a consequence and enjoy the benefits.
Find and engage tomorrow's top talent from across the world in their digital environment now.
#2 New UAE law to enable employment of foreign nationals and assist job seekers in making informed career decisions
The UAE recently overhauled its labour laws, making it simpler for individuals to enter the nation in pursuit of work. One example is the job seeker visa, which allows the bearer to visit the nation before beginning their employment search.
Social security efforts will also assist current workers. Employees who lose their jobs will be compensated for up to three months under new mandatory unemployment insurance beginning in January 2023.
People will be more picky about the route they choose for their next step. If you locate the appropriate individual, make your move and persuade them you're a good match. In our Salary Guide early next year, it will be fascinating to watch how business recruiting techniques fit changing employee expectations.
#3 Nationalisation will boost wages and competition for talent, but employees would likely switch positions more quickly
While the need for foreign labour is increasing, measures in the UAE will result in severe competition for local experts. A talented and qualified national will almost always be a recruiting employer's first pick.
Professionals are keen to take on new challenges, changing jobs every 2-3 years, up from the previous norm of 3-5 years. As more possibilities become available, the frequency will only rise. This circular movement will raise pay and generate greater competition for expat talent across the Middle East.
Salaries are increasing at a year-on-year pace of roughly 5%, as projected. But what is the utmost amount that organisations are ready and able to spend to meet demand, and what are the alternatives?