Dubai Workers Exude a New Confidence in the Economy

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In the last quarter of 2009, Dubai had been in the news for all the wrong reasons. There was the Dubai World financial crisis, followed by the credit crunch in the banking sector, and the economy appeared to be going nowhere.

Businesses have stalled, the stock market has been in decline and the remaining migrant workers in Dubai and indeed all over the Gulf seemed worried about their future prospects. But amidst all these events, it appears that hope has sprung out of adversity.

If the results of a new survey carried out by the recruitment firm Robert Half are to be believed, it seems that confidence is returning to the local job market in Dubai. This is indeed good news for job vacancies UAE, jobs Abu Dhabi and job openings Dubai, as it will revive the economy. Remember what happens in a downturn is that firms first try to cut down excess fat in terms of doing away with extra or redundant staff.

Functions are minimized and remaining staff share the burden. In this way expenses are reduced and the business is kept afloat. The survey found out that around one fourth of the retained employees actually experienced a positive effect of the downturn by seeing an increase in their salary or benefits during 2009. This means that the firms surveyed had reduced the staff to their minimum bench strength and managed to carry on business with this staff strength through the trying times.

The efforts of these staff were suitably rewarded as their salaries or benefits were increased. Less than 20 per cent of those surveyed experienced a cut in salary or saw the removal of a colleague in their team due to redundancy. In terms of the world economic crisis, it appears that the worst has already taken place in most countries and people are now looking for the economy to turn and move towards better times. That will come, but consumer confidence will have to be restored first. And for that to happen, they have to be less fearful about losing their houses, jobs and other possessions.

It is a confusing spiral, because the recession will only end if and when the majority of the population begins spending again. In the USA, President Barack Obama has let his displeasure be known to Wall Street and big business, as it was found that they were continuing to enjoy large salaries and benefits at the expense of the US tax payer. Obama has vowed to reduce the tax liability of last year so that the majority of middle class America does not pay it. He also wants to look at and put limits on the salaries and benefits that CEOs and VPs enjoy while displaying no empathy for the average American family.

The survey found that despite challenging economic realities across the world, less than 30 per cent of Dubai’s workforce was concerned about being made redundant. For those who had been retained, confidence in job security had increased 20 per cent over last year in Dubai. The results of the survey showed that one fifth of Dubai’s working population were more confident about their job security as compared to last year. This is a very promising sign for Dubai. In sharp contrast, some areas of Europe had as much as 42 per cent of people feeling less confident about their job security as compared to a year ago.

Recruitment firms have seen activity return to the job market starting in the last quarter of 2009, as companies started to hire again once they began to recover from the downturn. It is expected that this increase in confidence will continue into 2010 for both employees and employers. Compared to Europe, respondents in Dubai expressed high levels of optimism and satisfaction about the company they work for and its future prospects. 84 per cent of the respondents in Dubai believe the company they work for is financially stable, while 82 per cent were optimistic about the future of the company.

The extent of the survey was rather wide as it was also made in countries across Europe, including Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands and Switzerland. For interesting and relevant news about the UAE job market, continue signing in to Dubizzle.

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