UAE businesses hold back on hiring amid slowing demand

FIRMS TREAD CAUTIOUSLY IN MARCH, WITH SOME OFFSHORING CERTAIN OPERATIONS

- BY MANOJ NAIR

New job creation among UAE businesses was "subdued" in March, marking the weakest pace in three years.

Most businesses are preferring to maintain their workforce numbers. The cautious approach comes as demand growth in the UAE private sector recorded a minor slowdown during March.

"While business conditions improved at a solid pace, the upturn was the weakest recorded since September last year as demand growth showed signs of softening," says the latest monthly PMI reading from S&P Global.

Businesses in some sectors are re-evaluating their staffing strategies and, in some cases, deciding to offshore some of their operations.

"Hiring remains a significant concern, with March's employment increase marking the weakest growth in nearly three years," said David Owen, Senior Economist at S&P Global Market Intelligence.

"Given the elevated demand levels, this suggests that some firms could be struggling to locate suitable candidates."

Balancing needs and costs

There is also a growing tendency among employers to opt for short-term or freelance contracts instead of full-time hires.