The UAE has one of the lowest unemployment
levels in the world, standing at only 2.4 per cent at the end of 2001 as a result
of high growth in the non-oil economy and a government drive to find jobs for
citizens, according to official estimates. The
country's workforce was estimated at around 2.079 million last year, of which
nearly 2.029 million were employed, the Ministry of Planning said in its 2002
annual report. This means around 50,000
people were jobless, accounting for about 2.4 per cent of the total labour force
and just 1.4 per cent of the 3.48 million population. The
ministry said it had revised its figures for the workforce which it earlier estimated
at around 1.85 million at the end of 2001. Experts
said the revision was apparently prompted by drastic changes in the labour market
as thousands of expatriates had to leave because of new labour policies while
a large number of nationals are taking up jobs after reaching the legal job age. 
"Compared
to other developing or even developed countries, the UAE's unemployment rate is
one of the lowest in the world," said a UAE banker. But
experts noted official estimates do not include thousands of illegal expatriate
residents who are not registered with the Ministry of Labour and Social Affairs.
Although some of them have part time jobs in violation of labour laws, many of
them are unemployed. More than 200,000
illegal migrants, mostly Asians, left the UAE five years ago to benefit from a
general amnesty ordered by President His Highness Sheikh Zayed bin Sultan Al Nahyan
to clean up the country from immigration violations and restore discipline in
the job market. Another spardon is expected to be announced in the next few weeks. Although
actual unemployment rates might be higher, the UAE does not have a real joblessness
given its strong economy and a serious government campaign to employ nationals
through the creation of new jobs in the public and private sectors and replacement
of expatriate workers. Economists said
they saw no hurdles for such a campaign as the non-oil economy is growing by at
least four per cent, which is faster than the population growth. "This
means the UAE can cope with the population growth and at the same time maintain
its high per capita income which has eroded sharply in other countries in the
region," an expert said. A breakdown
by the Ministry of Planning showed the UAE has never suffered from a severe unemployment
problem, with the rate standing at only 1.9 per cent in 1975. It
fluctuated in the following years but remained in the range of one to three per
cent. The level is expected to be maintained
in the following years as the government's new labour policies focus on employment
of nationals and deportation of unnecessary and unqualified foreign workers. The
private sector will likely play a major role in the employment of citizens given
its massive potential and the fact that the public sector is saturated and is
not growing enough to accommodate large numbers of new jobs. | 
