The UAE labour market is set to undergo a major change in 2011 with the recent policies announced by the Ministry of Labour regarding candidates changing employers. This liberalisation of the market is likely to result in a more flexible workforce and will place a greater onus on companies in terms of retaining and engaging their staff.

BAC’s Commercial Manager was recently quoted in an Arabian Business article on the outlook for 2011 and the prospects for jobs and salaries.

BAC’s Commercial Manager was quoted in an AME Info article on the current state of the UAE job market. The article can be viewed here.

Mercer have released their 2010 Cost of Living Survey. Abu Dhabi has been ranked as more expensive as Dubai, but both cities have benefited in the survey from falling accommodation costs for expatriates. What is interesting is that while neither Dubai or Abu Dhabi are among the five most expensive cities in the Middle East and Africa; they are in the top five in the Mercer Quality-of-Living Survey for that region. This is actually very positive in terms of the UAE’s attractiveness to foreign investors and viability as a business centre for the region.

Mercer have released the results of a recent survey on the regional labour market and they are generally very positive. The headline figures that caught our attention were the following:

About 56.4 per cent of the surveyed companies are planning to increase their workforce in the coming year. Of these, one in five said they will increase their workforce numbers by at least 20 per cent. (…) Most firms surveyed (87.2 per cent) said they have no plans to reduce headcount in 2010.

These figures tie in with the increased sense of optimism in recent months. 2009 has been a challenging year, but we are increasingly confident that 2010 will be a better year for our clients and candidates.

The HR Consulting firm Mercer has released the results of its latest survey and the story has been reported in Emirates Business 24-7 and Arabian Business, amongst others. Mercer surveyed “more than 100 firms” and the headline figures were as follows:

The Total Remuneration Survey (UAE) of more than 100 firms with close to 23,000 employees said base salaries will increase by between 7 and 7.5 percent in 2010.

The survey findings also highlight the unpredictability of the past 12 months. In mid-2008, firms were forecasting 2009 salaries of close to 10%. Yet in fact, firms reported that base pay across the UAE rose by an average 3.4% – 5.2% during the year.

The reader comments on Arabian Business are very critical of the survey and its results. To be fair though, Mercer can only base their reports on the information they receive from companies and they are honest about the fact that company expectations last year did not prove to be an accurate guide.

My initial reaction is that the 3.4% – 5.2% increase for 2009 is certainly not realistic for Dubai, although salaries in Abu Dhabi have held up much better. As for the 2010 prediction, it’s really very hard to assess, but our estimation would be stabilisation and some calm after the storm.