New jobs created in Dubai even during crisis years: Report

Dubai has been ranked the second best metropolitan city globally in terms of job and income growth in pre-crisis era as the emirate continued to generate fresh jobs even during the crisis period, according to a research by world’s two renowned institutions.

The Brookings Institution and London School of Economics (LSE) research revealed that Dubai topped in jobs creations during the pre-crisis period of 1993-2007 with annual growth of 10.9 per cent in a survey of 150 metropolitan cities. While income in the emirate grew nearly five per cent per annum during the period.

During the global recession period of 2007-2010, Dubai witnessed 0.7 per cent growth in new jobs whereas most of the world’s top metropolitan cities – such as London, New York, Frankfurt and others - recorded negative growth in employment during the last three years when the global financial crisis was peaking. However, income growth dropped nearly eight per cent during the period.

The Brookings Institution and LSE study revealed that fresh employments grew by 1.1 per cent during the post-crisis and recovery period of 2009-2010.

According to the Labour Force Survey conducted by Statistics Centre of Dubai the unemployment rate in Dubai fell to 0.6 per cent in 2010 from 1.1 per cent in 2008 and 0.8 per cent in 2009. The figures include both citizens and expatriates. The ratio of unemployed men and women; citizens and expatriates are the lowest.

However, Abu Dhabi has been ranked fifth and 16th metropolitan city in the pre-crisis period and during the crisis period, respectively, for the job and income growth. The UAE capital has been ranked 43rd in terms of recovery among global 150 metro cities.

Between 1993 and 2007, the report revealed that half of the metro areas that achieved the strongest growth in gross value added (GVA) per capita and employment were located in rising nations of Asia, Latin America, and the Middle East that benefited from new heights of global economic integration. Metro areas such as Shenzhen and Bangalore roughly tripled their income, and employment in Singapore and Belo Horizonte, Brazil grew more than half over the 14-year period.

It said lower-income metro areas in the emerging markets of Asia, Latin America, and portions of the Middle East led growth in the pre-recession period, largely evaded the worst effects of the recession, and are now setting the pace in recovery. Istanbul, Shenzhen, Lima, Singapore and Santiago top fastest recovering metropolitan cities in the world, the survey revealed.

While the recession hit US metros harder than their European counterparts, the recovery seems slower to take hold in European than American metros, the study revealed.

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