Are White-Collar Jobs No Longer in Demand in the UAE? The rapidly advancing AI technologies are also poised to transform the recruitment process.

The UAE job market has been experiencing a significant surge in demand for both blue-collar and entry-level jobs, although white-collar recruitment continues to show a downward trend, as per a report by UAE-based recruitment and staffing solutions company Innovations Group.

Offering insights on the UAE's prevailing workforce trends and market insights, the study shows that blue-collar jobs have grown by 69% in 2024, primarily due to the ongoing mega projects in both residential and industrial construction. Overall, however, blue-collar hirings declined by 21% in 2024, despite the rising number of open positions, which indicates challenges in terms of mobilization and skill matching.

While the UAE government's focus on economic diversification and infrastructure development has led to a considerable influx of new businesses across industry verticals, there has also been a simultaneous decline in the white-collar job market in the country.

Hirings were down by 21% in 2024 although both job categories and the total number of open positions showed a modest increase. The focus of companies in centralizing their support functions, such as customer service and finance, in offshore global hubs outside the UAE are contributing to this downturn.

However, sales and business development positions remain in high demand due to their crucial role in driving growth for startups and new companies entering the UAE market.

Although companies continue to face challenges in sourcing talents for such sales and business development positions, the roles have remained in high demand. Demand for workers at entry-level positions, like receptionists and front-office staff, have also risen, with a specifically increased demand for foundational staff to support new commercial ventures.

"The UAE is a dynamic hub offering a pool of skilled workforce," said Nikhil Nanda, Director at Innovations Group. "It is important for specialized recruitment agencies to develop strategic approaches to address hiring challenges and skill mismatches. With expertise in global recruitment and associated services, Innovations Group, is well-positioned to help businesses meet these growing needs and tackle challenges through holistic approach to hiring."

In the upcoming year, a few key trends will shape the future of the job market in the UAE, as per the report. TFor starters, the trend of embracing remote work options is expected to continue in 2025, with more organizations adopting flexible work arrangements, including remote and hybrid work models.

The rapidly advancing AI technologies are also poised to transform the recruitment process. AI tools will continue to be leveraged at work, with 74% of professionals in the MENA region agreeing that AI tools can help them do their job better. As such, AI advancements are expected to speed up the entire recruitment process -by automating tasks like resume screening and interview scheduling, improving candidate sourcing, and reducing bias through data-driven decision. Another trend rapidly gaining momentum is skills-based hiring, with emphasis on the specific skillset and abilities of candidates instead of traditional markers like educational qualifications.