The National News reports that the UAE jobs market faces its biggest shake-up in years, as companies freeze salaries, cut long-time expat managers and look for AI-savvy recruits from an ever-growing pool of jobseekers.

It says that salaries for professionals in the UAE will see either zero or low-single-digit growth in 2025 due to a surge in population and the influx of job seekers, according to information received from a few recruitment consultants.

In Dubai, there are more candidates available in the market than jobs. This is the reason which leads to people accepting lower wages in specific roles. However, consulting firm Mercer anticipates a 4 per cent increase in UAE salaries for 2025, based on their survey of over 700 companies.

Around half (47%) of business leaders agree that although it is easier to find workers, it is not easy to find candidates with the right skills. Around one in five (19%) also agree that it is particularly challenging to find candidates who have previous UAE experience

Similarly, in an another survey, Hays survey indicates that 75 per cent of employers expect to raise salaries this year, with employees commonly receiving increments between 2.5 per cent and 5 per cent in 2024.

Employees in the UAE have been accustomed to receiving salary increases and living a tax-free lifestyle and built that into their cost of living. But this can’t last forever, Trefor Murphy, founder and chief executive of recruitment firm Cooper Fitch, told The National.