There is a lot of debate about how salary ranges and the job market will look in the UAE in 2025. While some reports suggest that employees may switch jobs in the next few months, others indicate a disconnect between employer and employee expectations due to rising living costs. Why the gap?
Pedro Lacerda, Senior Vice President and Executive Team Member at TASC Outsourcing, discussed how the UAE’s rapid population growth, fueled by a substantial increase in expats, has significantly impacted job market dynamics.
He also said that starting salaries have noticeably declined as more candidates compete for fewer roles in sectors like finance and accounting. “This trend highlights the increasing oversupply of talent, which, while beneficial for cost-conscious businesses, is a challenge for employers and employees,” said Pedro.
It’s important for employers to strike a balance between cost management and talent retention.
Lacerda remarked, “The current environment calls for a more strategic approach to HR — one that goes beyond competitive salaries to encompass holistic employee support, including career development opportunities, flexible benefits, and well-being initiatives.”
Pedro Lacerda, Senior Vice President and an Executive Team Member at TASC Outsourcing
Not only this, but Pedro agreed that stagnant wages coupled with rising living costs in the UAE have led to growing discontent, affecting morale and productivity. “To address this, employers must prioritize building a resilient workforce by fostering engagement and valuing their teams, even during economic challenges,” he concluded.
