Summer is upon us, and the heat
has arrived – not just in terms of
temperatures, but in terms of Abu
habi’s job market as well. Much of the
local workforce, at all levels, appears to
be coming and going and changing jobs.
In over thirty years in Abu Dhabi in the
recruitment business, I cannot remember
a time when there was so much mobility,
or so many people who would move if
they had the chance of doing so.
For many people, it’s not simply
a matter of choice – it is becoming a
necessity, because of inflation, rising
rents and a market imbalance that
sees some sectors handing out good
salary increases, mainly government
or government-related, while other
employers, primarily in the private sector,
are trying to hold the line.
In Abu Dhabi, location, location, location
is perfect, but rent, rent, rent is a nightmare.
During a recent recruitment campaign
we noticed that many candidates wanting
to move to other countries in the Gulf
region were people who had only arrived
here a couple of years ago. Now, having
experienced excessive rent increases
and large rises in school fees – even assuming that they can find places in a suitable school – these candidates
have decided to look at opportunities
elsewhere that have accommodation
provided as part of the package or have
an adequate housing allowance, on top
of a similar salary to the ones they were
receiving here.
It’s all very well, with bread-andbutter
issues like rents and school fees
becoming harder to manage, to dust off
the old saying of France’s Queen Marie
Antoinette and say: ‘let them eat cake.’
But if the cake isn’t affordable either,
people will re-locate to where they can
afford to live.
Disturbingly, there are signs that Abu
Dhabi could become the cake shop for
companies elsewhere who are looking to
recruit well-trained staff, with experience
in the region, who can easily adapt. This is particularly true in the Oil and Gas
industry, though there are others too.
It’s not easy to identify a short-term
solution, with inflation being fuelled by the
dirham’s peg to the US dollar and with
rent increases being driven by the fact that
demand is far outstripping supply. It looks
as though, in these areas at least, it will be
some time before the situation begins to
improve – and that means that it is even
more important for employers to take good
care of their staff, before more of them start
looking for greener pastures elsewhere.