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Dubai Sees 19% Decrease in Unemployment Rate

Middle East : 19 July 2010

The level of unemployment in Dubai has declined by 19% to just 0.8% according to a report released by the Dubai Statistics Centre.

The information in the Centre’s latest report is based on statistics that show the unemployment rate declining during 2008 and 2009 period. It shows that in 2009 smaller number of people (11,152) were not employed while 1.36-million were. It also states that the economically active population formed 86.6% of the UAE’s total 1.57-million population.

The report shows that of the unemployed people in Dubai, 3,973 were from the UAE while the rest (7,179) were expatriates. Most were not employed and neither married nor divorced, and more women than men were unemployed.

According to the report, the most common reason for people being unemployed in 2009 was due to people being fired or retrenched. In addition it shows that most of the people looking for work wanted to be employed rather than work for themselves, and thus be self employed. Most people are said to have spent between two and three months looking for a job of some sort.

Of those seeking employment, more people with university degrees had been unsuccessful in finding jobs than those who had primary or secondary education or even people who were illiterate. It isn’t clear whether this is because more people with degrees were seeking jobs.

The report states that most unemployed people wanted to do clerical or administrative work and they were mostly against doing low-skilled jobs.

HSBC’s Chief Economist in the Middle East, Simon Williams believes that 2011 will be a good year for Dubai. However he predicts that the economy will not grow sufficiently to regain previous levels that existed prior to the world economic crisis. He also suggests that the Dubai Statistics Centre figures alone are not a “very important variable” across the Emirates due to the “unique” nature of the “labour structure” in Dubai.

Gulf Connexions’ ICT Divisional Director, Ian Stammers adds “with many of the expats who were made redundant no longer in the country, the figures of course could have been much higher.  However, we have seen a consistent month on month rise in the number of clients registering vacancies with us and the number of hires, as well as many companies now looking at Dubai as a great place to invest which does point towards economic recovery”

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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