The economic downturn of some Middle Eastern countries due to the fall of oil prices will lead to a budget deficit in 2016 and succeeding years to come. New economic reforms such as massive job cuts will also affect employment opportunities of overseas Filipino contract workers. Massive retrenchment of employees in oil and gas sectors in the Middle East will also influence other sectors like real estate and financial institutions. A domino effect will follow, that could touch other small business sectors as well.
Businesses in the affected countries will find alternative ways to maintain their budget by way of hiring local employees rather than hiring expatriate workers. Some employers in production and construction industries are now taking the conventional approach by hiring employees with modest wage that could sustain profitable outcome of their production.
Gulf countries are also changing recruitment patterns, “following robust hiring activity in the first half of 2015, firms across the region have become increasingly cautious in hiring. Faced with a cooling business environment, many have limited recruitment to replacement hiring only. A significant number are undertaking restructuring, merging job roles or outsourcing entire departments to reduce costs and improve efficiency. With all hiring under scrutiny, there is growing demand for multi-tasking generalist candidates who can undertake a wide range of duties,” according to the research titled “2016 Employment and Salary Trends in the Gulf” by Gulf Talent, a leading job site for professionals in the Middle East and Gulf region.
A number of companies surveyed by GulfTalent mentioned plans to make some staff redundant in 2016, with firms in Saudi Arabia expected to witness the most job cuts, given the country’s higher dependence on oil revenues and the extent of planned austerity measures. – BongA (3/19/2016)