Dubai: More workers in the Gulf Cooperation Council (GCC) region lost their job in 2016 amid subdued economic conditions, although hiring outlook for the next 12 months looks positive, a new research suggests.

Recruiting experts Hays reported on Tuesday that the number of redundancies in the region have doubled year-on-year, with four per cent of employees reporting to have lost their job and nearly four in ten (37 per cent) of businesses implementing some job cuts in 2016.

More professionals also saw a decline in monthly income, with the number of workers experiencing a pay cut rising from 2 per cent to 9 per cent during the same period, as companies tightened their budgets in response to low oil prices.

Employees reporting salary reductions and job losses is no cause for alarm as the numbers are minimal. Analysts have also predicted that the overall situation will improve this year as companies look to hire new staff in 2017.

“We have certainly noticed companies adopting a more strategic and cost-conscious approach to spending on employee remuneration and the hiring of additional headcount,” said Chris Greaves, managing director of Hays, Gulf region.

Optimistic job market in 2017

Hays, however, noted that while last year was a challenging period, there is optimism in the job market this year. Among the companies surveyed, 72 per cent said they plan on recruiting additional staff in the next 12 months, up from 37 per cent who did so in 2016.

“[This year] is to be a busier year than 2016 for hiring in the GCC,” the Hays 2017 GCC Salary and Employment Report noted.

Latest economic indicators also suggest that conditions are improving. The Emirates NBD Dubai economy tracker index rose to 55.9 per cent in December, the highest reading since July, owing to fast growth in output and new work.

Greaves said that countries in the GCC region remain attractive for business, as can be seen from ongoing and added investment from new market entrants, particularly SMEs establishing themselves in free zones.

“Generally speaking, activity in the hiring market is looking positive,” Greaves said.

He added that companies, in particular, are looking for candidates who speak both Arabic and English, as well as those with both local and international experience. “It is, however, an incredibly competitive market for jobseekers and it is critical that candidates are able to demonstrate the value that they can bring to an organisation in order to be considered for a role.”

“Specific roles we have noticed to have increased in demand include cyber security professionals, who can proactively guard against threats to company property; online payment experts, in order to get the region up to speed with other global economies already invested in this; C-suite executives, to fulfil business objectives; as well as marketing content specialists, to build brand awareness and reputation.”