UAE job market grows 1.25% in Q1 2025 as employers prioritise skills and strategy
6 May 2025 01:24
KHALED AL KHAWALDEH (ABU DHABI)The UAE recorded a 1.25% rise in job opportunities during the first quarter of 2025, according to the Cooper Fitch Q1 2025 Employment Index, marking a steady start to the year in an evolving employment landscape shaped by digital transformation, policy changes and sectoral investment.Though marginal, the global recruitment firm says this increase reflects UAE employers' cautious optimism despite a slowdown in the global job market.The report said that firms are targeting strategic recruitment and internal efficiency, especially in sectors such as oil and gas, healthcare and technology.The growth is underpinned by the strengthening of the UAE's non-oil economy, with sectors such as trade, real estate and technology seeing stable recruitment demand."Early signals suggest that some traditionally high-growth sectors may be approaching a new maturity phase as the focus shifts from expansion to efficiency. These patterns raise timely questions about how the region's labour market is evolving," the report said.One of the stand-out areas was the increase in hiring for AI and digital jobs – growing 3% across the GCC in the first quarter of the year.According to Fitch, the region as a whole ranked above the global average for interest and investment in technology, with 81% of GCC companies surveyed in the report planning to boost tech investment and 72% ranking AI as one of the top innovation priorities.This fundamental shift in hiring criteria was reinforced in a recent LinkedIn survey cited by Marzio C, which found that 80% of professionals in MENA believe employers now value skills more than degrees. Marzio said this trend was encouraging for career-switchers and self-taught professionals with digital competencies."The UAE job market is charging ahead into 2025 with optimism and innovation. Global shifts in technology and policy are reshaping how employers hire and how professionals build their careers in the Emirates," Marzio said.The survey found that employers are adopting AI-powered recruitment tools, using them for resume screening, candidate matching and even virtual interviews.Around 74% of professionals in the region surveyed believed that AI tools help them work more efficiently, further validating the shift toward tech-led hiring, according to LinkedIn.Despite the optimistic economic momentum, salary growth has largely stalled. The Cooper Fitch report noted a 0% average increase in UAE salaries in Q1 2025, citing population growth and cautious employer strategies.
Nonetheless, 71% of employers either maintained or increased remuneration for new recruits over the past year, though this marked a 10% year-on-year decline.
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