Most UAE Firms Pauses Hiring In First Quarter (image-pixabay)
Most of the companies in the UAE are pausing hiring in the first quarter of 2025. According to a new study, the companies are looking forward to prioritising efficiency over headcounts, with most of the companies choosing to meet the demand with existing staff.
According to the recruitment company, Cooper Fitch, the Gulf Employment Index for the first quarter of 2025 noted that this indicates a “maturing market shifting from volume hiring to strategic recruitment focused on transformation and resilience.”
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The country had recorded a 1.25 per cent increase in hiring activity in the January-March period compared to the previous three months. The consultancy has said that this market shift indicates volume hiring for strategic recruitments. “The UAE experienced considerable growth in hiring last year. So, to continue to grow by 1.25 per cent is really strong,” said Trefor Murphy, founder and chief executive of Cooper Fitch.
With the introduction of the corporate tax, surging commercial sales, service fees, and salary increases driven by the cost of living, the era of double-digit profitability for businesses, particularly in certain sectors, is reducing, he added.
Last Tuesday, the International Monetary Fund (IMF) said the UAE economy expanded 3.8 per cent last year and is forecasted to grow 4.0 per cent and 5.0 per cent in 2025 and 2026, respectively. S&P Global Market Intelligence noted that the robust non-oil sector growth is supporting employment in the UAE. The UAE’s non-oil economy is projected to grow 5.2 per cent in 2025, helped by tourism, real estate, finance, and other sectors.
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The tariff row triggered by the US has added complexity in global trade dynamics and could impact the job markets. Though the ulf Cooperation Council (GCC) is not directly being involved, the political impact on oil demand, trade routes, and investment sentiment could affect employment in the energy, logistics, and tourism sectors.
