The national unemployment rate last year was 4 per cent, the Ministry of Economy said.
Emirati unemployment was 13.7 per cent, according to statistics released by the ministry. The rate among expatriate workers was 2.6 per cent.
The expatriate figure is much lower partly because expatriates are obliged to leave the country within a few months of ending their employment.
Since September, the global economic slowdown has triggered a slew of layoffs throughout the country in sectors, including construction, property, and financial services, that employ large numbers of foreign workers.
The statistics were compiled by surveying more than 11,000 randomly selected households throughout the country.
The respondants were asked if they were currently out of work and if they were looking for a job.
“A jobless rate in the UAE would underestimate the true extent of job losses in the economy,” said Philippe Dauba-Pantanacce, the senior economist at Standard Chartered Bank in Dubai.
According to Salwa Hammami, the senior economist at Arqaam Capital, the UAE, like much of the Arab world, faces a “skill mismatch” between highly educated citizens and the labour market.
Over the past few decades, there has developed a large segment of the population that is highly educated, but lacks technical skills that are in demand. “Nationals are also more selective when choosing jobs; they do not often accept certain jobs, like those which are less paid. For instance, you see few of them in the construction sector,” she said.
The ministry report said 13.7 per cent of expatriates were employed in construction sector, compared with 1.3 per cent of Emiratis. There was a similar trend among domestic services, which employed 14.3 per cent of expatriates and 0.9 per cent of Emiratis.
By comparison, more than 80 per cent of Emiratis were employed by either the federal or local government, compared with 10.8 per cent of expatriates. Nearly 70 per cent of expatriatess were employed by the private sector, compared with 10.7 per cent of nationals.
The report defined the unemployed as those above the age of 15 who desired to work and were ready to begin working within two weeks of participating in the survey.
Economists have expressed worries that a decline in employment because of the global economic crisis could further weigh down the economy by reducing demand for goods and services. The property sector is particularly vulnerable, they say.
“Demand is going to weaken, not only for real estate but also for schooling and consumer goods,” Ms Hammami said.
Travis Pantin