UAE job seekers demand 30% higher salaries amid rising living costs, talent shortages
According to a new report the salaries jobseekers demand in the UAE exceed what employers offer to new hires by as much as 30 per cent.
The increased cost of living in the UAE has led new employees to demand higher salaries while employers benefit from a larger talent pool which makes it challenging for jobseekers to receive significant pay raises.
According to the most recent Naukrigulf Hiring Outlook Report jobseekers typically request salaries that exceed employer offers by 15-30 percent. Senior positions exhibit the most significant salary gap between employee demands and employer offers.
Research indicates that salary demands are increasing alongside the rising living expenses in UAE which affects housing, education and healthcare costs.
The UAE population has experienced substantial growth during the past four years which resulted in significant increases in rents and expenses for school fees, transportation and healthcare. According to Worldometers the population of the Gulf country has risen from 9.789 million in 2021 to 11.346 million by 2025.
Naukrigulf reported that job seekers from around the world are flocking to the UAE and Gulf job market.
The availability of a larger talent pool to employers is serving to restrain salary growth across organizations. Job seekers face difficulties obtaining significant pay raises as the growing number of applicants keeps salary increases at bay despite expanding living costs.
50% higher salary
Companies offer salary premiums for skill-based positions because such talent is limited according to Naukrigulf. IT professionals along with cybersecurity specialists and AI experts earn salaries between 25 and 50 percent above average pay rates.
Sales and marketing professionals in rapidly growing industries such as SaaS and fintech are able to obtain salaries that exceed normal market rates by 20 to 30 per cent because of their specialized skill sets.
Companies experience prolonged hiring delays because skilled workers are in short supply. The survey revealed that 85 percent of UAE employers intend to hire during the next half year while seven percent are considering workforce reductions.
The survey shows that 71 percent of hiring efforts target mid-level professionals while senior management positions follow.
Shortage of skill
The hiring demand in UAE sectors such as engineering, sales and marketing is heavily affected by skill-based talent shortages according to the Hiring Outlook Report. The report notes that it is becoming increasingly difficult to find experienced engineers in civil, mechanical, and electrical fields within construction, infrastructure, and energy sectors.
Technology-driven roles are experiencing severe shortages even as demand for cybersecurity experts, AI specialists, cloud computing professionals, and full-stack developers continues to rise. The Gulf region requires operations and supply chain professionals with logistics and procurement expertise because it is advancing as a major trade center.
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