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23131
Tue, 10/07/2008 - 14:17
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https://oananews.org//node/23131
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Rapid economic growth outpaces job rise rate
Abu Dhabi, October 7, 2008 (WAM) - The UAE unemployment rate stood at around 3.45 per cent in 2007 and is projected to increase slightly in 2008 despite a double-digit growth in the domestic economy, official statistics showed yesterday “Emirates Business” reported.
But the increase will not affect the UAE's position as having one of the lowest jobless rates in the world although it has one of the highest population growth rates, showed the figures by the Ministry of Economy.
It gave no breakdown for 2008 or the previous two years but in 2005, Dubai had the lowest jobless rate in the UAE, standing at 1.7 per cent. Abu Dhabi had the second lowest rate of 3.5 per cent while Ras Al Khaimah had the highest rate.
The report estimated the UAE's workforce, aged above 15 years, at around 2.84 million in 2007 and those employed at 2.742 million.
It forecast the workforce would climb to 3.043 million and those employed to around 2.93 million. This means unemployment will rise from nearly 3.45 per cent in 2007 to about 3.71 per cent in 2008, according to the report.
For 2009, unemployment is projected to swell to 3.86 per cent as the workforce will rise to 3.263 million while those employed will reach 3.137 million.
The figures showed the workforce accounted for around 63.2 per cent of the UAE's total population of 4.488 million in 2007. The workforce is projected to increase slightly to 63.8 per cent of the 4.765 million population in 2008. In 2009, it is expected to climb to 64.4 per cent of the population of 5.066 million.
Experts believe the real jobless rates in the UAE are higher than the official figures on the grounds all the expatriates sponsored by individuals or companies but do not have jobs are calculated in the employment list by the Ministry.
"There is a hidden unemployment in the UAE. This problem has existed for ages because many individuals or companies are sponsoring foreigners for money without giving them jobs," said an economist an Abu Dhabi-based bank.
"Actually this is more a social and security problem than an economic one because the UAE economy has the capacity to absorb more jobs given its high growth over the past few years. But from the other perspective, the high jobless rate among expatriates normally poses a social and security threat to the country."
In nominal terms, the UAE has recorded one of the highest GDP growth rates in the world over the past six years because of strong oil prices, massive public spending, and an upsurge in construction and other non-oil sectors.
From around Dh624.6 billion in 2006, the nominal GDP jumped by nearly 16.8 per cent to Dh729.3bn in 2007 and is projected to record similar growth this year as oil prices are heading for highest ever average.
Real growth in UAE was much lower but very high in international standards, estimated at 7.4 per cent by the Abu Dhabi-based Arab Monetary Fund.
"Indications show that the UAE's economy will continue to record high growth rates this year as they are projected to be almost equivalent to the growth rate of 7.4 per cent recorded in 2007," the AMF said.
"This good performance will be a result of strong oil prices and the high growth in such sectors as construction, real estate, trade and foreign investment inflow."
High growth allowed the UAE to maintain its position as the second largest Arab economy after Kingdom of Saudi Arabia while it also remained the second after Qatar in terms of per capita income, which exceeded Dh160,000 last year.
The GDP per capita has steadily grown over the past years despite an annual increase of more than six per cent in the population.
But the increase will not affect the UAE's position as having one of the lowest jobless rates in the world although it has one of the highest population growth rates, showed the figures by the Ministry of Economy.
It gave no breakdown for 2008 or the previous two years but in 2005, Dubai had the lowest jobless rate in the UAE, standing at 1.7 per cent. Abu Dhabi had the second lowest rate of 3.5 per cent while Ras Al Khaimah had the highest rate.
The report estimated the UAE's workforce, aged above 15 years, at around 2.84 million in 2007 and those employed at 2.742 million.
It forecast the workforce would climb to 3.043 million and those employed to around 2.93 million. This means unemployment will rise from nearly 3.45 per cent in 2007 to about 3.71 per cent in 2008, according to the report.
For 2009, unemployment is projected to swell to 3.86 per cent as the workforce will rise to 3.263 million while those employed will reach 3.137 million.
The figures showed the workforce accounted for around 63.2 per cent of the UAE's total population of 4.488 million in 2007. The workforce is projected to increase slightly to 63.8 per cent of the 4.765 million population in 2008. In 2009, it is expected to climb to 64.4 per cent of the population of 5.066 million.
Experts believe the real jobless rates in the UAE are higher than the official figures on the grounds all the expatriates sponsored by individuals or companies but do not have jobs are calculated in the employment list by the Ministry.
"There is a hidden unemployment in the UAE. This problem has existed for ages because many individuals or companies are sponsoring foreigners for money without giving them jobs," said an economist an Abu Dhabi-based bank.
"Actually this is more a social and security problem than an economic one because the UAE economy has the capacity to absorb more jobs given its high growth over the past few years. But from the other perspective, the high jobless rate among expatriates normally poses a social and security threat to the country."
In nominal terms, the UAE has recorded one of the highest GDP growth rates in the world over the past six years because of strong oil prices, massive public spending, and an upsurge in construction and other non-oil sectors.
From around Dh624.6 billion in 2006, the nominal GDP jumped by nearly 16.8 per cent to Dh729.3bn in 2007 and is projected to record similar growth this year as oil prices are heading for highest ever average.
Real growth in UAE was much lower but very high in international standards, estimated at 7.4 per cent by the Abu Dhabi-based Arab Monetary Fund.
"Indications show that the UAE's economy will continue to record high growth rates this year as they are projected to be almost equivalent to the growth rate of 7.4 per cent recorded in 2007," the AMF said.
"This good performance will be a result of strong oil prices and the high growth in such sectors as construction, real estate, trade and foreign investment inflow."
High growth allowed the UAE to maintain its position as the second largest Arab economy after Kingdom of Saudi Arabia while it also remained the second after Qatar in terms of per capita income, which exceeded Dh160,000 last year.
The GDP per capita has steadily grown over the past years despite an annual increase of more than six per cent in the population.
