“Looking ahead to 2018, we expect real wage growth to stagnate,” Mohamed Bardastani, senior economist for Middle East at Oxford Economics, told Gulf News, adding that the implementation of a 5 per cent VAT in January next year will again “feed into higher levels of inflation.”
Oxford Economics has recently collaborated with recruitment specialists Hays to look into the employment conditions in the UAE. They found that overall, employers are facing easing pressures, as it is now easier to hire and retain professionals compared to last year due to high availability of talent, and salary increases have slowed down.
And while salaries have hardly moved, living costs seem to be picking up pace, with inflation rate in the first five months of the year reaching 2.2 per cent, mainly due to price increases in gas, water, electricity and transportation.
Source Credit: Khaleej Times
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