UAE Employers Plan Sharp Staff Cuts Amid Geopolitical Uncertainty

A ManpowerGroup survey found that 25% of UAE companies plan to cut staff, more than triple the 7% figure from three months prior. The increase is driven by geopolitical tensions and economic uncertainty, with smaller businesses and the logistics sector most affected. This shift is significant because the UAE lacks consistent official labor market data, making employer surveys a key indicator of economic health.
According to a ManpowerGroup survey of 546 UAE employers, the proportion planning workforce reductions has surged from 7% to 25% in three months, reflecting growing concern about geopolitical and economic conditions. Large companies remain relatively optimistic, with a third expecting to hire, while smaller businesses are more likely to reduce headcount. The logistics and trade sector—hit particularly hard by Strait of Hormuz disruptions—is the only major sector turning negative on hiring, whereas finance, healthcare, and public-sector employers still plan expansion. The dramatic swing in UAE sentiment outpaces other Middle Eastern countries, partly because the UAE had been experiencing a sustained hiring boom before recent regional tensions.
What different sources said
- SemaforCenter
UAE employers plan to cut staff, pushed by uncertainty
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