The UAE consists of 7 Emirates and Abu Dhabi is its capital city. In recent decades, Abu Dhabi has become a center of businesses, commercialization and industries. That is why there are so many companies that are fulfilling the demand for Labor Supply in Abu Dhabi to cater for the needs of businesses and other jobs.
The rapid growth and development of Abu Dhabi have resulted in increased skilled workers’ demand to fill the employment opportunities emerging now and then.
Bearing that in mind, we are here again with yet another blog to discuss the process related to Abu Dhabi labor supply, its importance, challenges and difficulties, and emerging trends. Also, you will learn how manpower supply in Abu Dhabi is managed by various companies and how the UAE’s economy is being impacted through it.
So keep on reading the most important factor in the growth and development of Abu Dhabi, i.e., a manpower labor supplier in Abu Dhabi.
Key Challenges in Abu Dhabi’s Labor Market
Maybe unemployment can be reduced through the job creation, which has lowered unemployment, but the Abu Dhabi labor market still has a lot of challenges to face. Although the efforts of every manpower labor supplier in Abu Dhabi are significant, the Employment rate remains low, reflecting the need to provide jobs to individuals searching for them.
We are discussing some of the key challenges and difficulties that the Abu Dhabi labor market is facing currently:
Wage Disparity Issues
Wage disparity or pay disparity refers to the unfair practice of an employer paying employees who are performing similar roles or fulfilling the same responsibilities, but they are paid with a huge difference. The reasons for that are not at all justified. Various factors contribute to the wage disparity issues like employee skills, working tenure, qualifications, or employment conditions.
For example, women in Abu Dhabi are paid way less than men due to institutional or intentional discrimination. Women are compelled to accept the law ball offers because there is a dramatic rise in gender inequality and gender bias.
Expatriate Workforce Dynamics
We all know how rapidly all the Gulf Countries have grown over the last six decades. The growth and development pattern we see totally relied on an expatriate workforce that has been and continuously increasing.
That is why the changing dynamics of the workforce in the UAE, especially in Abu Dhabi is a significant challenge that the labor market is facing. The dependence on the expatriate workforce cannot be eliminated, as the local population of Abu Dhabi is short of technical and professional skills.
Skills Shortages and Mismatch
As we have discussed the Governments of Gulf Countries are launching programs to include the local population in their nation’s workforce, Emiratisation in the case of the UAE, will require a decade or two to experience the positive impact of these policies. Hence, the businesses and employers in Abu Dhabi have to hire the expatriate workforce as the shortcoming of skills is a lot in Abu Dhabi’s local workforce. Also, the local Abu Dhabi citizens cannot meet the eligibility criteria for the job roles in Abu Dhabi.
Trends Of Labor Supply In Abu Dhabi
The labor supply in UAE is a supporting pillar for the economic growth and development of the United Arab Emirates. Obviously, the business environment in Abu Dhabi is equally competitive as it is for all the Emirates of the UAE.
That is why it is imperative to understand the trends in labor supply in Abu Dhabi for all employers to stay ahead of the competitive environment of business in Abu Dhabi. So without further delay the narrative, let us explain the trends related to manpower labor supplier in Abu Dhabi and the labor market.
Foreign vs. Local Workforce Dynamics
The population of the foreign and migrant workforce in the UAE and Abu Dhabi is immensely thick and there are a lot of workers who are permanently living in Abu Dhabi with families for work. The workers from Pakistan, Bangladesh, India, Nepal, Philippines, Sri Lanka, and other nearby countries are residing in Abu Dhabi and it is all about the efforts made by any labor supply company in Abu Dhabi.
But now, with the announcement of Emiratisation and relevant policies, the dynamic of the foreign workforce in Abu Dhabi has changed and it is a local worker preparing to get the qualifications and skills that foreign employees possess to contribute to the overall growth and development of Abu Dhabi as well as the UAE’s economy.
Labor Supply Response To Global Events
As trade around the world has brought all the countries close to each other, a single event creates a big impact in the economic hubs of the world like the UAE.
Although globalization has created more job opportunities in countries around the world including the UAE, it has also resulted in the heavy migration of professionals, workers, and employees in developed nations like the UAE. As Abu Dhabi is the capital of the UAE, it has to accommodate the foreign expatriate workforce.
Freelancers, independent and contractual workers, blue-collar laborer’s, and skilled professionals all are pouring into Abu Dhabi for better employment opportunities contributing immensely to the economic growth and development. Also, the global recession has led to the migration of workers to Abu Dhabi for a stable working environment.
Wage Trends And Salary Structures
The UAE labor law has not specified any kind of minimum wage or the basic or gross salary percentage, and there is no provision related to the proper salary structure. However, employers and businesses make sure that the basic salary is 60% of the gross salary with a 40% chunk of employee allowances.
So if you are wondering what amount is considered to be a good salary in Abu Dhabi?
Then, let us inform you that Abu Dhabi’s good salary range is AED 180,000 to AED 240,000 annually which constitutes AED 15,000 to AED 20,000 per month. The amount is considered enough for a normal and comfortable lifestyle in Abu Dhabi.
Well, we have researched and found out that the UAE Ministry of Human Resources and Emiratisation i.e., MOHRE has presented the guidelines for the basic salaries for foreign workers. The guidelines are based on the education, skills and qualifications of an employee for the purpose of a work permit:
- A bachelor’s degree holder worker must be appointed on a monthly salary of AED 12,000 minimum in Abu Dhabi.
- A monthly salary of at least AED 7,000 should be offered to the workers with a post-secondary diploma or equivalent.
- Those laborer’s and workers with no basic high school education should get the AED 5,000 per month minimum.
Labor Market Regulations and Compliance
The UAE labor law governs Abu Dhabi’s rules and regulations related to the labor market. As the law emphasizes the improvement of the employer-employee relationship in the private sector, it is a supportive pillar for Abu Dhabi’s labor market for the sustainable development of the Emirate.
The law provisions are equally implied to all private sector employers, businesses, and employees in Abu Dhabi. With continuous evolution, the UAE labor law was last updated in 2022 and the new law proactively protects both employer and employee rights in the employment contract.
The labor market rules and regulations cover the following aspects:
- Employee’s working hours.
- The payment structure for overtime.
- Annual leaves and casual leaves.
- Public holidays.
- Employing underage individuals.
- Employee records.
- Workplace safety standards.
- Minimum wage of the employee.
- Termination of employment contract.
- End-of-service or gratuity payouts.
- Work hazards and injuries.
Several work models are also introduced through the new laws, rules and regulations related to laborer’s in Abu Dhabi. These include full-time, part-time, contractual, temporary, freelance and flexible work models to facilitate the professionals and workers of all levels.
According to the law, it is prohibited to enforce forced labor and discriminate against employees on the basis of race, ethnicity, gender, religion, nationality, disability or social origin.
Here is the complete scope of the labor market regulations and compliance:
The law is equally applied to all employers and employees working in the Abu Dhabi UAE, whether they are UAE citizens or expatriates sourced through labor supply in UAE. However, the law exempts the following:
- Laboure’s, workers and employees of the UAE government and the local Abu Dhabi government institutions.
- Armed forces, police officers and individuals working in the National Security department.
- Domestic and household workers.
The demand for labor supply in Abu Dhabi is growing day by day due to the ongoing development projects. NG manpower strives to offer staffing support of top-quality, along with solutions for all kinds of concerns related to staffing.
If you want to make sure that your business, company, or organization develops in the thriving environment of Abu Dhabi, you have to acquire services from a reputable labor supply company in Abu Dhabi.
If you want to know more about the Labor Supply in Abu Dhabi and related topics, you can visit our website or contact us right away so that we can thoroughly guide you on what you are seeking.
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