The UAE’s growing population is contributing to salary stagnation as supply and demand move toward equilibrium, says recruitment specialists.
Dr Trefor Murphy, founder and CEO of Cooper Fitch, said the job market is not keeping up with population growth in the country.
“Last month, 18,000 new residents joined us in Dubai alone. So it’s tricky for the job market to keep up with that pace, and that’s kind of contributing to the flattening of salaries,” Dr Murphy told Khaleej Times in an interview.
The UAE population, according to worldometers, has increased to 11.47 million in November 2025 compared to 11.02 million last year. Similarly, Dubai’s population, which hit four million in April this year, reached 4.04 million this month, making the UAE as an employer market, rather than an employee market due to the oversupply.
“Increasing population is creating, in a lot of cases, an oversupply of people. We’ve got people coming here, which is fine, but if they’re coming here to set up business and invest,” he added.
Nicki Wilson, managing director of Genie Recruitment, said the UAE remains highly attractive globally and the talent pool has evolved faster than the job market in certain categories. This creates micro oversupply pockets in entry level roles while specialist roles continue to face talent shortages.
“The population has increased, but that hasn’t translated into pressure across all job categories,” she said.
According to Genie Recruitment, the majority of new profiles entering the market tend to come from admin backgrounds, office support roles or industries with non-transferable skill sets, so the oversupply is concentrated rather than widespread.
What roles are impacted
Nicki Wilson added that the “roles most affected are admin, HR executive and office manager positions, where we’re seeing downward pressure on salaries. Outside of these categories, particularly for specialist or in-demand skill sets, salaries have remained stable.”
The recruitment executive added that oversupply is most evident in roles where the skill set is easily replicated or not specialised, including admin/office management, generic coordinators or support roles, and HR executive roles.
“This also affects fresh graduates without niche skills or industry exposure. These areas now have more candidates than available opportunities, leading to increased competition and lower salary expectations,” she said, adding that employers are more selective than ever.
“Companies are prioritising cultural fit, adaptability and multi-functional capabilities, especially in leaner teams. Jobseekers need to work on personal branding, upskilling and learning new skills,” she concluded.
Source – https://www.khaleejtimes.com/uae/uae-jobs-salary-not-rising-population