DUBAI -- The Ministry of Labour has
announced that the labour market in the UAE has witnessed an increase in the
employment rate during 2014 by about 10 percent compared to 2013, and the total
number of labourers reached 4,417,000, a rate not seen in the market in 44
years.
Humaid Rashid bin Deemas Al Suwaidi ,
Assistant Under-Secretary of Labour Affairs, said, "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."
He also pointed out that the overall
status of the labour market and its indicators during 2014 confirm the strength
and growth of the national economy across its different sectors, especially if
employment rates are considered to be a reflection of the requirements of
development and the needs of economic sectors for employment, which during the
same year witnessed significant mobility among private sector enterprises,
especially highly skilled ones.
Al Suwaidi also referred to the fact
that the construction sector tops the list of the three major employers, where
the number of labours reached about 1,500,000, taking up about 34 percent of
total employment.
The business sector followed with
about 1,050,000 workers and 24 percent of total employment, then the industrial
sector with about 500,000 workers and 12 percent. The three sectors combined
account for about 70 percent of total employment in private sector
establishments registered with the Ministry of Labour.
Al Suwaidi said that the health
sector leads the list of the top three fast growing sectors in employment rates
during the previous year by 25.4 percent of the total increase in the number of
labourers joining the market during the same year. This is followed by real
estate, leasing, and business services sectors by 18.6 percent, then comes
hotels, restaurants, transportation, and storage sectors, which were relatively
close at 12.3 percent.
Al Suwaidi considers the fact that
the health sector leads the list of the fastest growing sectors in employment
rates to be an indication of a trend towards a knowledge-based economy and the
interest in promoting this sector, due to its significance as a service
provider to nationals and residents in the UAE.
The Assistant Under-Secretary also
explained that first and second class employment (in terms of skill level)
recorded the highest percentage in terms of the increase in the number of
workers by 14 percent, while third, fourth, and fifth class employment
increased by 9 percent.
He said that the increase in first
and second employment classes compared to the other three classes indicates
that the labour market is heading towards attracting talent and expertise in
specialised and technical professions. This only serves to reflect the need of
the private sector for such profession that comes in the context of the focus
of the national economy on productive employment, which in turn enhances the
knowledge-based economy and the citizen as its focal point.
According to the classification
adopted by the Ministry of Labour for employment, first class employment
includes specialised occupations which require a high degree of scientific,
technical, and executive skills and a university degree at a minimum. Second
class employment includes technical occupations which require the availability
of "cognitive, scientific and technical" abilities and practical and
supervisory skills with a 2-3 years degree from an institute post high-school
on average.
Third class employment in terms of
skill level requires practical and technical skills that cover the entire scope
of the job, and a high-school degree. While the fourth class employment skill
level includes occupations which require the availability of practical and
technical skills that cover part of the job and in this category individuals
need to be prepared and trained for two years on average.
Fifth class employment is considered
a limited skill category and includes occupations that require the availability
of practical and technical skills related to a small part of the job and can be
acquired during training in less than a year.
Al Suwaidi said that the labour
market has witnessed significant mobility in the number of labourers who
transferred to other facilities during this period after the implementation of
the new transfer system in 2011, compared to the period before the
implementation of the system. This confirms the positive reflection of the
system on transfer flexibility and market stability in the context of the
implementation of the Ministry's strategy of an integrated system of standards,
policies, regulatory tools, institutional partnership and outstanding services.
Al Suwaidi also explained in this
context that the total number of labourers who transferred to other facilities
during 2011, before the implementation of the new transfer system, was 105,000
but these cases increased exponentially during the years following 2011 to reach
170,000 by the end of last year, a rate increase of 62.5 percent.
He also said that the rate of
increase in the number of labourers listed under first and second class
employment who transferred to other facilities during the previous year was 14
percent and the rate of increase in the third, fourth and fifth employment
classes was about 7 percent.
The new transfer system is based on
two basic requirements. If met, the labourer becomes eligible for a new work
permit that immediately authorises him or her to transfer to another facility.
First, both parties (employer-employee) must consent to the termination of the
work relationship, and second, the employee must have spent at least two years
at the previous workplace.
Cases of exemption from the first requirement
include employees whose previous employers have violated the terms of their
contract. As for exemption from the second requirement, it includes employees
who wish to enroll in a first-class employment skill job with a minimum salary
of AED12,000, a second-class employment skill job with a minimum salary of
AED7,000 or a third class employment skill job of a minimum salary of AED5,000.
-end-
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