10 per cent expatriates lose jobs in Gulf slump
09 Dec 2009
Professionals working in the Gulf have been hit hard by the downturn, with almost two-thirds not receiving any pay hike and one in 10 losing their job this year, says a survey by online recruitment firm GulfTalent.
In its fifth annual survey of labour market trends in the region released yesterday, it found that average increases in salary across the six Gulf countries over the 12-month period to August 2009 fell sharply to 6.2 per cent compared with 11.4 per cent over the same period last year.
The drop was most severe in the United Arab Emirates, which fell from 13.6 per cent to just 5.5 per cent this year, as construction firms hit by the global financial crisis cut back amid a near 50 per cent fall in property prices.
Kuwait also saw a significant drop in pay rises from 10.1 to 4.8 per cent, after the value of its financial investments collapsed.
The report said 60 per cent of professionals surveyed did not receive any pay increase this year at all, compared with only 33 per cent last year. It said 10 per cent, or one in ten professionals was made redundant. This was highest in the UAE at 16 per cent and lowest in Oman at 6 per cent.
On a sector-wise basis, real estate had seen the most drastic cuts, with 15 per cent losing their jobs. But though some expatriate professionals who lost their jobs have returned home, the study found that many have been re-deployed elsewhere in the region.