Professionals cut costs to survive recession

Almost half of UAE professionals, 43% to be precise, have cut down on their household expenditure in response to the ongoing recession, the highest cut among all of the countries surveyed around the Middle East, according to a study conducted by the Middle East's number one job site — Bayt.com— in collaboration with research specialists YouGov. The study called Surviving the Recession found that across the rest of the surveyed countries, however, only 30 per cent of professionals have cut down on their household spending, while just over a quarter of respondents have actually increased their household budget. "In similar research over the past six months, we have seen that UAE consumers are cutting back considerably on their spending. Now, despite some signs of optimism at the grassroots level in the global economy, it seems the trend of being more price-conscious looks set to continue, at least in the short-term," said Nassim Ghrayeb, CEO of YouGov in the Mena region. When it came down to the reasons why professionals have cut down on their household spending, the recession was the most common answer among GCC respondents, at 43 per cent. This was closely followed by cutbacks because the respondents — or a member of their household — had lost job, at 37 per cent. The UAE's figures were the highest in terms of cutting down household spending due to job losses with 45 per cent reiterating this statement, closely followed by Kuwait at 44 per cent, and Egypt at 41 per cent. Asked about whether they were willing to settle for a reduced salary in a new job in case of redundancy, only 31 per cent of all respondents said they would be willing to do so, while 45 per cent stated that they would not settle for any less. In the UAE, the figure was higher than average: 38 per cent of respondents stated they would be willing to accept a lower salary while 43 per cent stated they would not. The study also asked the respondents how much less they would be willing to settle for, if they were to take up a new position. Interestingly, unemployed professionals seemed far more willing to compromise: 49 per cent of working professionals would not accept less than their current package, compared to only 27 per cent of those currently unemployed, who were willing to settle for a lower salary. "There is a general consensus that the recession is having a sustained impact on the region, which of course manifests itself in the behaviour and attitudes of professionals living and working here. The recession has led to a dearth in liquidity, which is made clear by the fact that so many residents in the region have limited their spending. By conducting this study, we are shedding light on the extent of these limitations and how, overall, people feel they are dealing with the situation," said Amer Zureikat, Bayt.com's Regional Manager. The study asked the respondents about their financial health both before and during the recession to ascertain how many professionals felt their financial position has changed. Prior to the recession, 36 per cent of all respondents felt they were better off than their peers, 39 per cent felt they were the same, and 12 per cent felt they were worse off. During the recession, respondents generally felt their position had worsened: only 25 per cent of all respondents feel better off than their peers, 39 per cent feel their financial position is the same as their peers, and 22 per cent feel it is worse. In the UAE, the figures changed considerably. Before the recession, an overwhelming 41 per cent of respondents felt financially better off than their peers, while only a quarter of respondents feel better off during the recession. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .