The job market in Dubai continues to improve and grew by more than 20 per cent in the first quarter of the year compared with the same period last year, according to one of the leading recruitment firms in the country.

"In the first quarter of 2010, we recorded 21 per cent more vacancies in Dubai as compared with Q1 last year. For the first time in seven months, Pathway Resourcing registered a larger proportion of vacancies in Dubai compared to Abu Dhabi," Hasnain Qazi, Middle East Business Manager, Pathway Resourcing, told Emirates Business.

Such a considerable increase, in effect, points to the fact that Dubai's economy is on the mend and appears to be growing reasonably. "This is a significant rise and puts to bed rumours that Dubai economy is flat. We have seen tangible evidence suggesting that the Dubai economy has already started to bounce back," he said, adding that the growth in vacancies was across a wide spectrum of economic sectors, signalling a wider economic recovery.

Confidence in Dubai

"This is based on vacancy flow figures, which have increased month-on-month for two quarters across all the sectors we specialise in, including professional services such as banking, finance, legal and human resources and technical services such as engineering and Information Technology," Qazi said. "It also reflects the long-term faith and confidence that Middle East and North Africa (Mena)-based multinational companies and recruitment agencies have in Dubai remaining the major trade hub among Gulf Co-operation Council (GCC) states."

However, he was not willing to speculate if this growth would continue in the next few quarters. "It is still too early to comment on whether the vacancy flow trend will continue in the same direction. However, we believe that the worst is certainly behind us," he said.

Nevertheless, analysts see growing optimism in the number of jobs coming into the market and maintain that the job situation in Dubai is better than last year. "While the upward job flow growth curve of Qatar, Saudi Arabia and Abu Dhabi is well documented, it is significant that Dubai is proving to be more resilient than many give the emirate credit for," Qazi added.

Experts maintain that the growth in Dubai's job market has been noteworthy since the beginning of the year. "Yes, we've seen more employers now willing to hire as the risk aversion is not as high as last year. Moreover, those companies in Dubai that arbitrarily cut down their employee numbers last year are now realising that they are short of staff as the economy starts to look better. Many such short-staffed companies are coming to us looking for candidates," said another expert in a Dubai-based recruitment company, who did not want to be identified.

Expats prefer Dubai

Quoting a recent report by a global recruitment company, he added: "The total cost to replace an employee, including training and productivity loss, can range from 90 to 200 per cent of an employees' annual salary. So these kind of companies are particularly at a loss and there were plenty who looked for quick-fix solutions during the crisis."

Some experts believe that Dubai's reputation of being one of the best places to live in for expatriates in the GCC is a plus point. "Dubai is holding its own in terms of being a regional hub for businesses seeking to trade in the GCC. It is viewed as being one of the better expat postings in terms of infrastructure in the region," Matthew Carter, Managing Director, McArthur Murray, told this newspaper.

He added: "That said, it has been the most savagely hit in terms of job losses specifically in real estate, construction and financial services. However, people have invested a lot of their time in building careers in Dubai and are waiting to see just how resilient it is and how it will be in 2011. We are still seeing job losses in certain sectors."

"Indeed, there was much speculation and conspiracy theories as regards the fall of Dubai and the sharp decline in the overall job market," said Panos Manolopoulos, Vice-Chairman, Regions, Stanton Chase International.

"The truth is that the decline followed some general global trends but after all it responded well to the real estate/ construction slowdown. In short, there was a correction period over the past 12 months that tends to stabilise now. I do not think we will ever experience such a booming expansion as happened during 2004-2008 but Dubai and the UAE will top global lists of job markets as regards the demand for many years to come and the foreseeable future," Manolopoulos added.

Vacancy flow figures have increased month-on-month for two quarters Hasnain Qazi, Middle East Business Manager, Pathway Resourcing

Dubai is holding its own as a regional hub for businesses seeking to trade in the GCC Matthew Carter, Managing Director, McArthur Murray

Dubai and the UAE will top global lists of job markets Panos Manolopoulos, Vice-Chairman, Regions, Stanton Chase International