Eighty per cent of UAE employees expressed willingness to switch jobs for better pay, a new report finds.
The Korn Ferry’s Workforce 2025 survey of 501 professionals and leaders, conducted across 10 global markets, highlights the challenges facing the UAE as it maintains its position as 17th globally in talent attraction and first in the Arab world.
“The UAE continues to lead the region in innovation, economic diversification, and workforce evolution. As we shape a future built on technology, sustainability, and global connectivity, the expectations of talent are shifting just as rapidly. This report highlights the critical trends influencing the UAE labour market—from working with different generations, compensation pressures, and talent mobility to the growing demand for purpose-driven leadership, agile work environments, and AI adoption. To remain competitive, organisations must go beyond traditional strategies and embrace data-driven, people-first approaches,” Jonathan Holmes, managing director at Korn Ferry Middle East, Africa, and Turkey said, according to the report.
Living costs outpace salaries in UAE
Two-thirds of UAE respondents report that rising living costs outpace their salaries, with housing and education expenses driving the concern.
Despite this, companies provided an average salary increase of just 4 per cent in 2024, based on a separate survey of 843 companies.
“Employees are facing increased costs of living, especially in housing and children’s education. However, salaries haven’t kept pace with these rising expenses, and, as a result, benefits and pay has become the leading reason for leaving companies,” Vijay Gandhi, Regional Director for Europe, Middle East, and Africa at Korn Ferry Digital said.
Gen Z feels overlooked in careers
The survey identifies a perception gap between generations, with 68 per cent of Generation Z workers saying they need better communication and teamwork training, whilst only 42 per cent of Generation X employees recognise the problem.
Gen Z workers report feeling overlooked, with 60 per cent believing they miss training opportunities due to their age and 56 per cent claiming they are passed over for senior positions.
In contrast, 61 per cent of Generation X and Baby Boomers believe technology training is key to bridging skills gaps.
The UAE workforce will become increasingly multigenerational, with projections showing nearly one-third of people over 70 will continue working by 2033, whilst Generation Alpha, born from 2010 onwards, will begin filling junior roles.
UAE leads in AI workforce readiness
The UAE emerges as one of the most AI-ready workforces globally, surpassing traditional innovation leaders like the US, Europe, and Japan.
The country’s National AI Strategy 2031 aims to establish global leadership in artificial intelligence across healthcare, education, and transportation sectors.
The appointment of the world’s first Minister of State for AI demonstrates the nation’s commitment to innovation. Survey data shows 80 per cent of UAE professionals feel positive about AI’s impact on their roles, compared to lower percentages in Western markets.
Manufacturing leads AI training adequacy at 85 per cent, followed by healthcare at 83 per cent and government at 79 per cent. Energy and utilities lag behind at 43 per cent, with consumer goods at 60 per cent.
Workers rethink career paths
The introduction of corporate tax in the UAE has prompted some companies to slow hiring, whilst increased migration to the country creates additional job market pressure. As a result, 78 per cent of employees express openness to changing industries for better job security.
Pay and compensation rank as the top reason employees would leave their current job, followed by job security, career advancement, employee benefits, and learning opportunities.
The UAE’s expatriate population is projected to reach 88.5 per cent by 2025, maintaining the country’s position as one of the world’s most diverse talent markets.
GDP growth of 5 per cent annually supports economic momentum but fails to address cost-of-living pressures.
Leadership trust emerges as a retention factor, with three out of five surveyed employees saying they would remain in a job because they trust their manager.
However, 44 per cent of UAE employees report discomfort sharing personal issues affecting their work with managers.
“The lack of psychological safety can lead to decreased productivity, higher turnover, and lower engagement. This impacts team collaboration, absenteeism, and overall business performance,” the report stated.
