UAE jobs growth at 44-year-high; fastest growing sectors revealed
The UAE’s Ministry of Labour has announced new statistics for the number of new jobs created in the country. According to data published by the Ministry, the year-on-year increase in the rate of employment in the UAE stood at 10 per cent, a rate not seen in the labour market in 44 years.
The overall jobs market grew to more than 4.4 million employees, with a robust economy boosting the jobs numbers. The ministry noted that the year also witnessed significant mobility among private sector employees, especially highly skilled ones.
“The ministry issued approximately 1,212,000 work permits over the previous year,” said Humaid Rashid bin Deemas Al Suwaidi, Assistant Undersecretary of Labour Affairs, and noted that the number of work permit cancellations last year stood at about 821,000 permits.
Al Suwaidi also pointed out that the overall growth in the employment market during 2014 confirms the strength and growth of the country’s economy and various key sectors.
Job-creation is a clear indicator of economic growth and development, with higher growth resulting in more jobs.
Not surprisingly, considering the nature of the work and the growth it has witnessed in the past few years, the construction sector tops the list of top employers in the country, accounting for 1.5 million or more than a third (34 per cent) of the country’s total workforce.
The business sector follows the construction sector, employing as it does more than 1 million people, or about a quarter (24 per cent) of total employment.
This is followed by the industrial sector, where about 500,000 employees work, accounting for 12 per cent of the overall workforce.
These three sectors combined account for about 70 per cent of total employment in the private sector establishments registered with the Ministry of Labour.
Al Suwaidi also stressed that the health sector leads the list of the top three fastest growing sectors in job-creation during the previous year, with the number of people employed in the sector growing by a whopping 25.4 per cent during last year.
It was followed by real estate, leasing, and business services sectors where the number of new jobs created grew by 18.6 per cent; followed by comes hotels, restaurants, transportation, and storage sectors (12.3 per cent new jobs created in 2014).
Al Suwaidi noted that the fact that the healthcare sector led the list of the fastest growing sectors in job-creation is a clear indication of the UAE’s move towards becoming a knowledge-based economy.
The Assistant Undersecretary of Labour Affairs also explained that the jobs growth was the most prominent in specialised and technical occupations, which is a very healthy sign for the economy.
First and second class employment (specialised and technical jobs) recorded the highest percentage increase in the number of new jobs, growing by 14 per cent; while third, fourth, and fifth class employment increased by 9 per cent.
According to the classification adopted by the Ministry of Labour for employment, first class employment includes specialised occupations, which require a high degree of scientific, technical, and executive skills and a university degree at a minimum.
Second class employment, on the other hand, includes technical occupations which require the availability of “cognitive, scientific and technical” abilities; practical and supervisory skills with a 2-3 years degree from an institute post high-school on average.
Third class employment in terms of skill level requires practical and technical skills that cover the entire scope of the job, and a high-school degree. While the fourth class employment skill level includes occupations which require the availability of practical and technical skills that cover part of the job and in this category individuals need to be prepared and trained for two years on average. Fifth class employment is considered a limited skill category and includes occupations that require the availability of practical and technical skills related to a small part of the job and can be acquired during training in less than a year.
Al Suwaidi said that the increase in first and second employment classes compared to the other three classes indicates that the labour market is heading towards attracting talent and expertise in specialized and technical professions. This only serves to reflect the need of the private sector for such profession that comes in the context of the focus of the national economy on productive employment which in turn enhances the knowledge-based economy and the citizen as its focal point.
The Assistant Undersecretary of Labour Affairs also revealed that the labour market has witnessed significant mobility in the number of labours who transferred to other facilities during the period after the implementation of the new transfer system in 2011 compared to the period before the implementation of the system.
This confirms the positive reflection of the system on transfer flexibility and market stability, which comes in the context of the implementation of the Ministry of Labour’s strategy through an integrated system of standards, policies, regulatory tools, institutional partnership and outstanding services.
Al Suwaidi also explained in this context that the total number of labours who transferred to other facilities during 2011 before the implementation of the new transfer system was 105,000 labours; whereas transfer cases increased exponentially during the years following 2011 to reach by the end of last year 170,000 labours, an increase rate by 62.5 per cent.
He also said that the rate of increase in the number of workers listed under first and second class employment who transferred to other facilities during the previous year reached 14 per cent; whereas, the rate of increase in the third, fourth and fifth employment classes was about 7 per cent.
The new transfer system is based on two basic requirements, if met the labour becomes eligible for a new work permit that immediately authorises him/her to transfer to another facility. First, both parties (employer-employee) consent to the termination of the work relation; second, the employee has spent at least two years at the previous workplace.
Cases of exemption from the first requirement include employees whose previous employers have violated the terms of their contract. As for exemption from the second requirement, it includes employees who wish to enrol in a first-class employment skill job with a minimum salary of Dh12,000 or a second-class employment skill job with a minimum salary of Dh7,000 or a third class employment skill job of a minimum salary of Dh5,000.