Are the 'chameleon like' changes in Dubai affecting the job market?

You may nonchalantly skim over such articles with a 'heard it all before' attitude, but have you ever stopped to think how these changes affect the nuts and bolts of Dubai's economy, i.e. people who are employed or people seeking employment?

It is imperative for companies to keep abreast of the current changes in the Dubai market, and they have a responsibility to be aware of the way these changes affect employees, clients and ultimately, their business. These market changes manifest themselves in many forms. For example, cost of living increases such as the increased housing rents, the number of job seekers arriving in Dubai searching for that 'golden job', the newly introduced freehold law, the recently publicized 5% plus increase in grocery shopping, and dare I say it, traffic congestion. All of these issues have a significant impact on the job market at all levels, and has resulted in HR professionals engaging in colourful debates during our HR Forums!

To give an example, the housing rent increases have meant that many lower level administration staff are being forced to relocate to other emirates, down grade their accommodation, try and seek higher paid work, or reconsider their reasons for being in Dubai and leave the country for pastures new. Clearly, any option has a negative impact on the person and the company's staff retention. Alarmingly, this particular trend is leading to a skills shortage at the lower level and potentially a skewed social demographic. However, this isn't a problem solely for the junior and mid level staff. Recent headline reports of 20% plus school fee increases will drastically affect parents who are working at all levels. Companies must be aware of this and react accordingly if they want to retain their staff. To raise awareness of these issues, we compile an annual Cost of Living Dubai Report. The 2006 Report was released on May 15th this year, and provides independently researched information about what it costs to live and do business in Dubai. This survey provides employers with up to date information on the value of their staff, and provide a benchmark for ensuring remuneration packages remain competitive.

On the flipside, changes to the property market could impact the employment market in a different manner. For example, the new freehold law allowing expatriates to own property could create a perception of greater stability in home and working lives. This stability will compound the transformation of Dubai from being a transit destination to a place where people will settle indefinitely. This could lead to greater staff retention, as employees will not be forced to seek higher paid employment to coincide with their annual rent hike.

This poses one final question, "are these changes a long term concern for the employment market, or are they merely part of the bumpy ride that accompanies the growth of any city of opportunity such as Dubai?" Only time will tell.