67 per cent of UAE employers plan to hire in the next three months

The Middle East Job Index survey, compiled by Bayt.com and YouGov, has revealed that 65 per cent of those in the GCC are planning to hire in the next three months, especially in the UAE and Saudi Arabia.

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More than two thirds of UAE employers (67 per cent) are intending to hire, according to the survey. Private sector companies have the highest intention of hiring, with 70 per cent of multinational companies, 69 per cent of large local companies and 63 per cent of small or medium-sized local companies, 'definitely' or 'probably' hiring.

When it comes to hiring by industry in the MENA region over the next three months, organizations in the banking/finance industry present the highest intention to hire (74%), followed by the hospitality/recreation/entertainment (73%) and the telecommunications industry (71%). On the other hand, government/civil service have the lowest intention to hire in the same period (58%).

Looking to the future, more than eight in 10 working respondents in the UAE (82%) claim that they intend to hire in a year's time. Echoing the short term, private sector companies continue to have the highest hiring intentions in the long term with 77% of multinational and large local companies, respectively, and 74% of small or medium local companies, 'definitely hiring' or 'probably hiring'.

Among UAE companies that plan to hire in the next three months, 62% indicate that they will be hiring for a maximum 10 jobs. Overall, GCC companies (87%) seem to be hiring for more jobs compared to the Levant (77%) and North Africa (82%). A majority of UAE companies hiring in the next three months are looking to fill entry-level (35%) and mid-career (13%) positions with no managerial responsibilities.

Qualifications, skills and experience employers are after

Graduate/post graduate degrees in business management (36%), followed by engineering (29%), are the most sought-after academic qualifications in the UAE. Employers in the UAE are also looking for employees with good communications skills in both English and Arabic (59%), as well as candidates with good teamwork (49%) and leadership (46%) skills.

In terms of experience, almost half of UAE respondents state that they are looking for candidates with good administrative skills, while 38% are searching for those with sound managerial skills. Meanwhile, a third is looking for candidates with sales and marketing skills.

Attractiveness of job market and industry

In the UAE, 61% of respondents believe that their country of residence is more attractive as a job market than any other country in the region, 12%, however, believe the opposite to be true. When it comes to the attractiveness of their industry as a potential employer, 49% of UAE respondents believe that theirs is more attractive than other industries in the region.

Human resources (34%) and hospitality/recreation/entertainment (31%) emerged as the industries that attract top talent in the UAE. Real estate/construction/property development (29%), banking/finance (27%), advertising/marketing/public relations (26%) and healthcare/medical services (26%) are also popular industries.

"The Middle East's hiring outlook is looking quite positive, with 64% of employed respondents planning to hire in the next three months; 40% of whom will be hiring for up to five jobs. At Bayt.com, there are currently more than 10,000 jobs posted on the website on any given day, giving job seekers the opportunity to find jobs in their industry, career and country of choice," said Suhail Masri, VP of Employer Solutions, Bayt.com.

"In parallel, organizations looking to hire can make use of the tremendous amount of recruitment that takes place via the Bayt.com CV Search functionality to meet their pressing hiring needs and fill their job vacancies quickly and efficiently," he added. "Recruiters and managers who are looking to hire new talents can try the Bayt.com CV Search functionality for free at www.bayt.com/en/search-cv/," Masri concluded.

Almost seven in 10 respondents from the UAE are employed in the private sector, a quarter work for a multinational company, while 7% work for the public or government sector, and 11% are unemployed.

"The increase in the hiring expectancy throughout the MENA region is a positive reflection on the economy as a whole. By gauging the perceptions when it comes to the MENA's job market, we can deduce that the private sector is expected to offer the most employment options in the next few months and be the driving force of job growth in the region. It is also interesting to note that employers place the greatest emphasis on language skills, particularly English and Arabic." said Joao Neves, Senior Research Director, YouGov.

Data for the Bayt.com Middle East Job Index survey was collected online between June 15th, 2016 and August 16th, 2016, with a total of 2,001 online interviews conducted with respondents from the following countries: UAE, KSA, Kuwait, Qatar, Oman, Bahrain, Lebanon, Syria, Jordan, Algeria, Egypt, Morocco, Tunisia, and Pakistan.

Insufficient work experience block fresh graduates from employment

The unemployment rate across the Middle East & North Africa is climbing at around 23%, making it almost twice the global average which stands at 13%. According to the latest  “Fresh Graduates in the Middle East and North Africa Survey” conducted by YouGov and Bayt.com, 51% of fresh graduates across the region claim that the greatest challenge they face when securing a successful career is that employers prefer candidates with work experience.

Of over 4,000 respondents surveyed in 13 countries across the region, just under a third (31%) claim securing their first job is ‘very difficult’. Most believe many industries do not hire fresh graduates due to ‘lack of experience’ and ‘lack of necessary skills’ (52% and 32%, respectively).

It is evident that young job seekers don’t necessarily have the sufficient knowledge to seek out the right role. Aside from lack of work experience, respondents cited a lack of knowledge as to where to find relevant jobs (35%) and a lack of understanding regarding how to effectively search for jobs (32%) as the main challenges they face when trying to secure their first job.

Unfortunately, the majority (61%) also feel they would have fared better in the job market if they had selected either a different major (32%), the same major but from a different school (11%), or both a different major and a different school (19%).

Despite the negative outlook, the research demonstrates the determination of fresh graduates to do whatever it takes to secure their first job. 43% claim they will keep searching until they find a job in the industry of their choice, whilst one in every five (21%) will look for a job in a different industry, and a further 16% will find any job regardless of the industry.

When asked to rank the most important attributes for them when selecting a job, its clear passion overrides money for most. ‘Doing a job I feel passionate about’ was the most important factor for 79% of respondents. This was followed by ‘competitive salaries’ (61%), ‘opportunities for career progression’ (60%), and ‘good training/ development programs’ (58%).

Overall, amongst industries which are hiring fresh graduates, respondents claim their lower salary expectations (45%) and compliance and willingness to follow instructions (34%) were the key motivations for employers hiring fresh graduates.

When it comes to salary expectations in particular, while one in every five respondents surveyed were unaware of what salary they should expect for their first job, 41% received or expected to receive a starting salary of less than USD750 per month. Unsurprisingly, the study found a disparity between the starting salaries anticipated in different countries. In Egypt for example, 53% of fresh graduates expect a monthly salary of USD500 or less, while 46% in Saudi Arabia expect a salary of between USD1,000 and USD3,000 per month.

 “The results suggest that while fresh graduates across the region expect it to be challenging to find a job, many are resilient and unwilling to compromise on their dreams and ambitions. Indeed, the largest proportion of fresh graduates surveyed claimed they would keep looking until they found a job in their industry of choice and a ‘job they feel passionate about’. Unfortunately, aside from the necessary work experience many graduates also lack an understanding of how or where to look for jobs”, commented Joao Neves, Senior Research Director at YouGov. “Ultimately, results suggest much benefit could be gained by having employers collaborate closely with educational institutions not only to provide internships to students but also to educate them on effective job searching techniques.”

Job seekers in UAE find difficult to Secure Job

Despite their generally positive view of their own skill level, 59 per cent of job seekers in the UAE find it difficult to secure a job with their current skills, with 19 per cent claiming it is 'very difficult', data from a recent survey has shown.

The 'Skills Gap in the Middle East and North Africa' survey, conducted by Bayt.com and YouGov, found that job seekers rated the importance of various skills in improving their chances of finding a job. When people seeking employment for senior positions in the UAE are asked about the skills they possess, they rated 'collaboration/teamwork' as their strongest skill. This was followed by 'overall personality and demeanour', 'communication skills', 'ability to work under pressure', 'efficiency' and 'critical thinking and problem solving'.

 Similarly, when people seeking employment for junior- to mid-level positions are asked about the skills they possess, they rated 'collaboration/teamwork' as their strongest skill, followed by 'overall personality and demeanour'.

 "In today's dynamic and ever-evolving job market, candidates need to be constantly looking for new ways to enhance their skills in order to differentiate themselves, optimise their profile and effectively navigate complex work environments," said Joao Neves, senior research director at YouGov. "Ideally, to maximise the impact of their efforts, industry leaders, educational institutions and governments should work together to provide job seekers with clear guidance on future growth areas in the region and most desirable skills to succeed."

In order to keep their skills current, job seekers in the UAE are committed to self-improvement and rated reading articles and journals at 62 per cent, reading books at 53 per cent, researching industry best practices at 46 per cent and taking online courses at 39 per cent as the most popular methods to achieve this.

"It is a compelling and fundamental issue nowadays for job seekers to be able to ensure their prominence with the right set of skills for their target job. Employer consideration of both online and offline skills is rapidly expanding," said Suhail Masri, vice-president of employer solutions at Bayt.com.

Across the region, when respondents were asked to select the main reason why they felt job seekers have difficulties in finding jobs matching their skills, the fact that 'job seekers do not know what employers are looking for' and that 'educational institutions do not teach students the skills they need to enter the job market' topped the list.

When looking at country-specific responses, results suggest 'job seekers not knowing what skills employers are looking for' is more of an issue in the UAE and Qatar, while those in Egypt were the most likely to claim that 'educational institutions do not teach students the skills they need to enter the job market'.

When asked about the best solutions for the perceived skills gap, respondents across the Mena said 'companies should provide enough training opportunities to employees' at 42 per cent; 'companies, educational institutions and governments should work together to predict future skills needs' at 40 per cent; and 'companies and educational institutions should work together to provide students with the skills they need to enter the job market' at 39 per cent, as the most ideal solutions.