UAE jobseekers demand 30% higher salaries amid rising living costs, talent shortages

There is a mismatch of up to 30 per cent in UAE salaries that jobseekers demand and employers offer to new employees, says a new report. 

New employees in the UAE are demanding higher salaries due to the rising cost of living in the country while employers now have a bigger talent pool, making it hard for jobseekers to get large increases.

Jobseekers are typically asking for 15-30 per cent more than employers are willing to offer, according to the latest Naukrigulf Hiring Outlook Report. This disparity is particularly noticeable in senior roles, where the gap is even wider.

The study showed that the demand for higher salaries comes amid the rising cost of living in the UAE, particularly for housing, education, and healthcare. 

The UAE has seen a big increase in population in the past four years, pushing rents, school fees, transportation costs and healthcare expenses substantially higher. The Gulf country’s population has increased from 9.789 million in 2021 to 11.346 million in 2025, according to Worldometers. 

However, Naukrigulf noted that the UAE and Gulf job market is seeing a surge in global job seekers. 

“Employers now have access to a larger talent pool, which is keeping salary growth in check. While professionals expect higher pay, the influx of candidates is moderating salary hikes, making it harder for job seekers to secure large increases despite rising expenses,” it said.

50% higher salary 
Skill-based roles command salary premiums due to a shortage of availability of such talent, as per Naukrigulf. For example, IT, cybersecurity specialists and AI experts can command 25 to 50 per cent higher pay than the average. 

Similarly, sales and marketing professionals in high-growth sectors like SaaS and fintech can negotiate salaries 20 to 30 per cent above standard market rates due to their specialised skill sets. 

As a result of a shortage of skilled workers, companies are facing hiring delays for months. 

The survey found that 85 per cent of employers plan to hire over the next six months in the UAE while seven per cent may cut jobs. 

It said mid-level professionals are overwhelmingly in demand with 71 per cent of all hiring focused on this segment, followed by senior management roles. 

Shortage of skill 
Certain sectors in the UAE are facing skill-based talent shortages such as engineering, sales and marketing, which account for a significant share of hiring demand, according to the Hiring Outlook Report. 

“Finding experienced civil, mechanical, and electrical engineers, especially in industries like construction, infrastructure and energy is getting tougher,” it said. 

In addition, technology-driven roles are facing severe shortages, with demand surging for professionals in cybersecurity, AI, cloud computing, and full-stack development. Operations and supply chain workers —especially those skilled in logistics, procurement, and supply chain planning — are also in high demand as the Gulf strengthens its position as a global trade hub.

Source: https://www.khaleejtimes.com/jobs/uae-jobseekers-demand-30-higher-salaries-amid-rising-living-costs-talent-shortages