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

emirates7 - A new report reveals that jobseekers in the UAE are expecting salaries up to 30% higher than what employers are offering, with the gap being particularly large for senior positions.

This salary disparity is driven by the increasing cost of living in the UAE, as jobseekers seek higher compensation to keep up with rising expenses, particularly in housing, education, and healthcare. On the other hand, employers have access to a larger talent pool, making it difficult for jobseekers to secure significant salary increases.

According to Sharad Sindhwani, Naukrigulf's business and product head, job applicants are typically asking for 15-30% more than employers are willing to offer. The rise in salaries comes amid a sharp increase in population, which has led to higher living costs. The UAE's population has grown from 9.789 million in 2021 to 11.346 million in 2025, according to Worldometers.

While there is growing demand for higher salaries, the influx of global job seekers is keeping salary growth in check, making it challenging for applicants to secure large raises despite the increased cost of living.

Certain skill-based roles are commanding premium salaries due to talent shortages. For instance, IT, cybersecurity, and AI experts can earn 25-50% more than the average salary. Similarly, professionals in high-growth sectors like SaaS and fintech can negotiate 20-30% above the standard market rate due to their specialized skills.

The shortage of skilled workers is causing hiring delays of several months for companies. Despite this, 85% of employers plan to hire in the next six months, while 7% may reduce their workforce.

Mid-level professionals are in particularly high demand, accounting for 71% of hiring activity, followed by senior management roles.

Certain sectors, such as engineering, sales, and marketing, are experiencing talent shortages. Finding experienced civil, mechanical, and electrical engineers, especially in construction, infrastructure, and energy, is becoming increasingly difficult. Technology-driven roles, especially in cybersecurity, AI, cloud computing, and full-stack development, are also facing severe shortages. Additionally, there is high demand for operations and supply chain professionals, particularly those skilled in logistics, procurement, and supply chain planning, as the UAE strengthens its position as a global trade hub.