Wednesday, 22 November 2017 02:47 GMT
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Gulf pay hikes on standstill as job market slows down

(MENAFN - Alrroya) About 60 per cent of professionals across the Gulf region have not received a salary increase from August 2008 to August 2009, GulfTalent.com revealed in a survey published on Tuesday. "Professionals working in the Gulf region have been hit hard by the downturn, with almost two-thirds not receiving any pay increase and one in ten losing their jobs this year," the online recruitment firm said. According to GulfTalent.com's "Employment and Salary Trends in the Gulf 2009-2010", reduced demand for talent and greater availability of candidates both regionally and internationally has shifted the balance of power from candidates to employers, easing upward pressure on salaries. "Sixty per cent of professionals surveyed did not receive any pay increase this year at all, compared with only 33 per cent last year. Of raises awarded, many were due to the momentum of the previous year and had been approved before the full extent of the downturn had become apparent," it was noted. The report was based on a survey of 24,000 professionals in six GCC countries with interviews was conducted in September and October this year. Based on findings of the study, GulfTalent.com says average salary increases across the six Gulf countries over the 12-month period to August 2009 fell sharply to 6.2 per cent compared with 11.4 per cent over the same period last year. The drop was most severe in the UAE, which fell from 13.6 per cent to just 5.5 per cent this year, largely due to its heavy exposure to the real estate sector. Kuwait also saw a significant drop in pay rises from 10.1 per cent to 4.8 per cent, after the value of its financial investments collapsed. Pay rises in Saudi Arabia stood at 6.5 per cent, compared with 9.8 per cent last year, the smallest fall among GCC countries. Massive spending by the Saudi government on infrastructure projects this year has helped maintain economic activity. While pay rises have slowed relative to the boom years, they remain high in comparison to other parts of the world, as the region's slowdown has been less severe than those of US and European markets. Base salaries in the UK and US this year are estimated to increase at just 1.5 per cent and 3.7 per cent respectively, according to international surveys. GulfTalent.com's study paints a mixed outlook for 2010. While 15 per cent of companies surveyed reported planning further job cuts, 51 per cent are expected to increase headcount. Overall, the study predicts some pick-up in hiring activity next year, but warns that recruitment volumes will not reach the levels seen during the boom for quite some time.


Gulf pay hikes on standstill as job market slows down

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