UAE job seekers face tough time as vacancies dip

(MENAFN- Khaleej Times) If you're looking for a job in the UAE it may not be the best time according to a new report.

The latest Morgan McKinley UAE Employment Monitor for Q1 2016 shows a challenging start to the year and a tough quarter. The number of jobs on offer decreased by 9% to 7212 in Q1 2016 compared with 7899 in Q4 2015. The year-on-yearreduction in new vacanciesfrom Q1 2015 to Q1 2016 is a whopping12%.

In particular the Banking & Financial Services sectors have decreased hiring levels as the knock-on effect of the protracted weakness in commodity prices and the oil and gas industry is still feeling the pain. With the general weakness in the jobs market these candidates are having a tough time transitioning into a new career. However there are opportunities for certain types of candidates. Particularly those who are mid-career will have the necessary depth of experience that employers require.

- Trefor Murphy Managing Director Morgan McKinley UAE

Despite the dip in vacancies candidateswho are mid-career are more likely to find opportunities in the UAE - thanks to their priorexperience. "The challenge is to find those high-end candidates" adds Murphy. "Those job seekers who can show a solid professional track record are the ones who employers are after."

See job listings in the UAE here.

Hiring hit bylow oil prices

"It was a more challenging start to the year than usual" commented Trefor Murphy Managing Director for the Middle East and North Africa at Morgan McKinley. "The general feeling is that it's a tough market out there but then again it's a tough market everywhere at the moment."

"We have seen that our Banking & Financial Services clients have decreased hiring levels as the knock-on effect of the protracted weakness in commodity prices. The oil and gas industry is still feeling the pain as was to be expected. Overall redundancies have been on the increase however with the bottoming out of the oil price redundancies in this sector have started to slow down. Many of the oil and gas industry workers who have been laid off have remained in the region with the hope of the market picking up or of being able to shift careers. With the general weakness in the jobs market these candidates are having a tough time transitioning into a new career."

Also read: Banks brace for slower growth

"When the price of a barrel of oil goes from $125 to $35 the economy will inevitably have difficulties" says Murphy. "Ironically though the market is still busy finding the specific talent is the challenge at the moment." The government is introducing taxes for the first time in the form of a 5% value added tax (VAT). This should bring much needed revenue to the government coffers support new infrastructure building projects and act as a buffer to the economy this change will not come in to effect for another 16 months.

"Although the market is not going at full throttle there is still a general air of optimism with employers using this period to drive organisational efficiencies. We see this in the increased use of consultants and fixed term projects" says Murphy.

Also read: Hirings in Middle East being affected by low oil prices

Also read: Some professionals can change jobs at any time

Growth sectors

As there are no temporary or interim job opportunities in the UAE organisations are more likely to invest on consultants.

"Consultants and consultancy firms are being used more across the board. The big four and management consultancy firms are definitely busier" says Murphy. "There are situations where firms are letting people go and at the same time kicking off consultancy projects as skills requirements change."

Construction projects may also see a boost. The government is also more open to new projects specifically those that support the country's infrastructure as it expects more tax revenue from the new VAT to pay for them.

Market predictions

A slowdown is likelytowards the end of Q2 because of Ramadan.

"From a recruiting point of view it's all about the right talent and a specific skill set. Those candidates who employers are interested know their value and are reluctant to move" Murphy concluded.

- Growth forecast: Demand for consultants and consultancy firms was much stronger in quarter one (Q1) than expected and this is set to continue for the rest of the year

- Decrease in recruitment activity: The number of jobs on offer decreased by 9%. The number of jobs available in Q1 2016 was 7212 compared with 7899 in Q4 2015

- Year-on-year slowdown: Compared to Q1 2015 the UAE saw a fall of 12% in Q1 2016 in the number of new jobs available in the professional hiring market

- Professional job seekers snapshot: The number of professionals seeking jobs increased by 31% quarter-on-quarter in the UAE to 4982

- Year-on-year comparison: The number of professional job seekers in the UAE market increased by 22% year-on-year between Q1 2015 and Q1 2016

- Influx of oil and gas workers into the job market has increased jobseekers numbers

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Nilanjana Gupta As a multimedia journalist I consider it a privilege to tell the stories of people in the UAE and allow the world to meet the people with whom their paths may never cross. I am a graduate of the Broadcast and Digital Journalism master's programme at Syracuse University in New York. Prior to joining Khaleej Times I interned with Al Jazeera English in Washington DC and worked as a senior news desk editor with CNN-IBN in Delhi.