UAE employment trends: Innovations Group's latest report

Zawya

28-01-2025

21% Decline in White-Collar Hirings: Downturn driven by offshore centralization and challenges in sourcing sales talent.
74% Support AI in Recruitment: MENA professionals believe AI tools improve job efficiency and candidate sourcing.
Dubai, UAE: Innovations Group, a leading recruitment and staffing solutions company, recently released its report titled 'Workforce Trends & Market Insights', which highlights the prevailing trends in the UAE job market. The UAE government's focus on economic diversification and infrastructure development is leading to a boom in the industrial sector and driving a significant influx of new businesses across industry verticals.
The report reveals that the UAE job market has been experiencing a significant surge in demand for both blue-collar and entry-level jobs, although white-collar recruitment continues to show a downward trend. Blue-collar jobs have grown by 69% in 2024, primarily due to the ongoing mega projects in both residential and industrial construction. Record high levels of off-plan residential sales have peaked construction activities, driving a spike in demand for construction workers. Additionally, geo-political instabilities in the Middle Eastern region have led to redirection of cargo through ports in the UAE, leading to increased operational & management (O&M) activities. This has benefited job opportunities in the logistics and port management sectors. However, overall blue-collar hirings declined by 21% in 2024, despite the rising number of open positions, which indicates challenges in terms of mobilization and skill matching.
The white-collar job market in the UAE, however, has seen a slight decline. Hirings were down by 21% in 2024 although both job categories and the total number of open positions showed a modest increase. The focus of companies in centralizing their support functions, such as customer service and finance, in offshore global hubs outside the UAE are contributing to this downturn. However, sales and business development positions remain in high demand due to their crucial role in driving growth for startups and new companies entering the UAE market. Although companies continue to face challenges in sourcing talents for such positions with the right mix of market knowledge, network, and competitive incentives. Demand for workers at entry-level positions, like receptionist and front-office staff, have also risen with the increasing establishment of new businesses in the country. The proliferation of entry-level positions reflects the UAE's economic momentum, with increased demand for foundational staff to support new commercial ventures.
Nikhil Nanda, Director at Innovations Group, commented: 'The UAE is a dynamic hub offering a pool of skilled workforce. It is important for specialized recruitment agencies to develop strategic approaches to address hiring challenges and skill mismatches. With expertise in global recruitment and associated services, Innovations Group, is well-positioned to help businesses meet these growing needs and tackle challenges through holistic approach to hiring.'
Looking ahead to 2025 and beyond, a few key trends will shape the future of the job market in the UAE. The UAE has been a leader in embracing remote work, especially since the COVID-19 pandemic. This trend is likely to continue in 2025, with more organizations adopting flexible work arrangements, including remote and hybrid work models. The adoption of remote work will enable companies to expand their talent pools beyond geographic boundaries, encouraging companies to explore options in recruiting candidates from across the globe. Organizations must adapt their policies and work culture with care to fully leverage the benefits of remote and hybrid work models.
The rapidly advancing AI technologies are also poised to transform the recruitment process. AI tools will continue to be leveraged at work, with 74% of professionals in the MENA region agreeing that AI tools can help them do their job better. AI advancements have the potential to revolutionize the entire recruitment process, by automating tasks like resume screening and interview scheduling, improving candidate sourcing, and reducing bias through data-driven decisions. By improving efficiency, personalization, and fairness, AI solutions will continue to transform the way organizations find, attract, and hire talent.
Another trend rapidly gaining momentum is skills-based hiring, with emphasis on the specific skillset and abilities of candidates instead of traditional markers like educational qualifications. By prioritizing the abilities and skills of candidates over traditional differentiators like degrees or career paths, organizations can tap into a much wider and more diverse talent pool, while fostering innovation and work culture.
The UAE's job market is dynamic with several job opportunities. Companies must adapt to changing market trends and expectations of a younger workforce to recruit & retain the right talent and leverage their expertise and overcome recruitment challenges effectively.
About Innovations Group:
Innovations Group is the UAE's leading recruitment and staffing solutions provider with services that include talent acquisition, permanent staffing, contract staffing, global mobility solutions, PRO and payroll services among others. The Company has been active in the staffing and recruitment business for the past 25 years and has successfully carved out a niche for itself in the industry. Over the years, the company has diversified into various sectors across the UAE including technology, aviation, real estate and hospitality among others. Home - Innovation UAE
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