The UAE has registered the largest rise in job creation over the past six years, with a robust growth forecast in the labour market over the next few years.

Yet retaining talent could also be a challenge for businesses due to a skilled worker shortage, according to HR and recruitment consultants.

“We predict rapid growth in the UAE’s employment market over the next five years and confidently foresee that the UAE will continue to become a worldwide focal point for growth and opportunity despite the increasing cost and challenges of finding and retaining talent,” according to UAE-based recruitment agency, Nadia Global.

In Q3 last year, the UAE witnessed the biggest increase in job creation, a rise of 56% in new roles within non-oil sectors as per S&P Global’s UAE Purchasing Managers Index (PMI), Zawya reports.

With the UAE economy growing at a rapid pace over the past couple of years, Nadia Global registered a 200% rise in vacancies in 2022 as the number of unemployed candidates plummeted.

“The UAE became the number one destination for job searchers by overseas candidates,” said Raghib Salim, general manager of Nadia Global.

In relation to the new jobs, the agency added that the new corporate tax law, coming into effect on 1st June this year, will “significantly increase the requirement for tax specialists and accounting professionals” in the country.

Nadia Global added that the market now faces a scenario of a rising number of vacancies and a shortage of candidates.

“The much-predicted ‘great resignation and war for talent’ have become today’s reality. Both employers and employees must now meet balancing job security against rising costs, and a suitable medium will have to be found between businesses achieving profitable growth and paying employees a fair market rate to avoid them seeking alternative employment,” said Ian Giulianotti, executive director of Nadia Global.

Furthermore, according to the managing director of THA Staffing, Yoann Coulon, there is heightening demand for skilled workers in several sectors, particularly events, retail and hospitality.

“The UAE has become a global hub for innovation and commerce, and the prevailing trends in the job market indicate the rise of a new working-model era driven by freelancers, thereby shaping the future of the industry,” Coulon stated.