Dubai leads job creation in post-financial crisis surge

In jobs growth, a key yardstick to assess overall economic performance of a nation, Dubai posted the fastest growth of 15.6 per cent in the past five years.

Dubai — Two of the world’s fastest-growing cities, Dubai and Beijing, led the way in post-financial crisis recovery by recording the highest growth rates in jobs creation, a research by the International Festival for Business, or IFB, shows.

In jobs growth, a key yardstick to assess overall economic performance of a nation, Dubai posted the fastest growth of 15.6 per cent in the past five years.

The research, undertaken by Oxford Economics, was conducted during May and June 2015. It shows that Dubai’s jobs growth will remain consistently strong and is forecast to increase to 18.2 per cent over the next five years.

According to official data released by the UAE Ministry of Labour, the country saw a record growth in its labour market in 2014, with the employment rate rising 10 per cent compared to 2013, The total number of workers employed in the country reached 4,417,000, a rate not seen in the market in 44 years.

“The ministry has issued approximately 1,212,000 work permits over last year, which also witnessed the termination of work relations for about 821,000 labourers,” Humaid Rashid bin Deemas Al Suwaidi, assistant under-secretary of Labour Affairs, said recently. Overall, the construction sector topped the list of employers, with a total of 1.5 million workers — accounting for about 34 per cent of total employment, the data found.

The business sector followed with about 1,050,000 workers and 24 per cent of total employment, while the industrial sector came third with about 500,000 workers, accounting for 12 per cent of the total.

The three sectors combined accounted for about 70 per cent of total employment in private sector establishments registered with the Ministry of Labour, the report said.

According to the IFB research, jobs growth in developed cities has recovered from the 2007-08 financial crisis.

“Dubai, the most populous city in the UAE, enjoyed a remarkable period of jobs creation, experiencing an employment growth of 15.6 per cent in the past five years,” Festival for Business said.

Beijing followed closely, with jobs growth ranking at 10.9 per cent and, despite some suggestions of a Chinese economic slowdown, the city’s jobs total will continue to grow rapidly at 10.1 per cent over the next five years.

According to IFB report, New York, formally at the centre of the crisis, has experienced jobs growth of eight per cent since 2010 and will continue to experience growth at 4.1 per cent over the next five years.

Berlin also performed strongly with jobs growth at seven per cent. However this will ease to one per cent between 2015 and 2020.

Sydney, which anchors Australia’s financial sector, underwent a 6.9 per cent increase and this will continue at 4.1 per cent over the next five years.

Manchester saw a 5.6 per cent increase in employment and Liverpool 5.4 per cent, these will continue at 3.8 per cent and 2.6 per cent up until 2020.

The research marks one year out from the International Festival for Business 2016. Supported by the UK government and senior business figures such as Sir Terry Leahy, the three-week event brings together global business figures to meet and make deals.

Max Steinberg, chair of the International Festival for Business, said: “It is hugely encouraging to see some of the world’s most-developed cities surging ahead after the shock of the financial crisis.

“However, Britain needs to rise to the challenge from cities like Beijing and Dubai where jobs growth continues to boom. The International Festival for Business is a perfect place for any business, large or small, to learn more about how to get fit for export and become more competitive in an ever-changing marketplace.”

“As a testament to the rise in confidence of British business, IFB 2016 today announces HSBC will become a main partner and DLA Piper, Heathrow, PwC, Siemens and Virgin Trains will become Festival Supporters.”

John Cridland, director-general of the Confederation of British Industry, said the ramping up British exports and business investment is critical to our long-term growth. “Next year’s International Festival of Business will be a fantastic opportunity for the United Kingdom to attract business, trade and investment from around the world.”

“A rise in productivity will be a key ingredient in the sustained success of the recovery, so it’s important business and the government work together to solve the problem through investing in skills and supporting investment.”

— issacjohn@khaleejtimes.com