Bad news: UAE salary increases DOWN in 2015!
If you were hoping for a massive salary increase this year, we’ve got some bad news for you. A new report by global recruiter Morgan McKinley states that UAE salary increases will be between 5-6 percent in 2015, which is lower than 2014. Say it isn’t so!
The slump in salary increases is large due to uncertainty about oil prices. They initially forecasted that 2015 would be a “bumper year” for salary growth and job creation, but the unexpected decline in oil prices has changed their initial prediction. “The major caveat is the fall in global oil prices to an eight-year low in 2014,” said Trefor Murphy, managing director at Morgan McKinley UAE. “The current prognosis is that the fall in oil prices is likely to be short-lived. However, if the price should fall further, the economic outlook is likely to change significantly,” he added.
This means that many employees in the UAE will have to continue being careful with their money and budgets, considering that the 5 percent increase in salary won’t be enough to match the increases in rentals and general cost of living. Moving jobs within the UAE will also be slightly more difficult. “Locally based candidates will tend to wait for an opportunity offering a major salary hike before moving jobs, and this is a factor depressing the talent supply,” McKinley said in their report.
On the other hand, the number of new jobs coming to market during 2015 is likely to see a 10-12 percent increase. “Many employers, however, are holding firm on salaries and will import professionals from abroad,” the report stated.
Not exactly the news we wanted to hear…