Unemployment is phenomenon which happens when we find people available without work. It is a large societal and economic job which is really common presents in developing and developed states ; Unemployment is normally measured utilizing unemployment rate. Unemployment in Abu Dhabi is phenomenon which has many rates, grounds and consequences.

Before the independency of the U.A.E. , The economic system was under basic economic control. Fishing and small agribusiness were in usage as the chief activities in UAE. With the discovery of oil UAE ‘s economic system extended and the oil sector represented more than 35 % of UAE ‘s GDP. In 2005, the U.A.E. produced about 2.4 million barrels per twenty-four hours, 85 % of it was Abu Dhabi ‘s ain merchandise. The oil income permitted the authorities to pass charitably on substructure, instruction, and occupation creative activity. The rise of oil monetary values in the 1970s provided the Gulf Cooperation Council ( GCC ) states with the fiscal financess which made huge economic development plans that required invasion of non-national labour available. However, the slack in oil monetary values in the mid 1980s and the dwellers ‘ enlargement made unemployment an issue in GCC states. This undertaking assesses unemployment in the UAE and measures the unemployment rate in Abu Dhabi ; the capital of the United Arab Emirates.

As for the beginning, Unemployment is the incapableness for workers who want to happen profitable employment. The extent of unemployment in a state is an index of the economic strength of that state. Many causes can negatively impact the unemployment rate numbering corporate retrenchment, amalgamations, execution of mechanization engineerings, and occupation outsourcing to other states.

UAE unemployment by and large

Unemployment in the UAE is seen one of the lowest in the universe ( Kawach 2002 ) . It was initiated to be 2.4 per centum by the terminal of 2001, where the estimated labour force was around 2.1 million and 2.0 million were employed. Due to the addition in population and the enlargement in the figure of national alumnuss from universities and higher instruction schools, unemployment along with subjects turned into a sensitive job in latest old ages.

Unemployment in the UAE has severe harmful effects on the society and the economic system every bit good. The authorities will be under political force. It will pass more on societal refunds. The economic system will be wobbly and wealth misallocated. As a consequence, the authorities set a new labour policy to locate subjects in civic and private division occupations, which were up until that clip overruning by non-Emiraties. This policy alerted on a fussy sector, such as finance, in order to carry through an purpose of 30 per centum nationalisation. Harmonizing to the Ministry of Planning, the figure of working subjects did non excel 9 per centum of the entire labour force in 2003. This shows the deficiency of the proper certificates of subjects to vie labour market demands. In order to get the better of this structural crisis in the 2 labour market, the authorities requested the educational foundations to set up the shutters of the breach between academic series and labour market through convenient and specialised schooling. Unemployment in UAE is determined in the center of young person, where more than 50 per centum of whole unemployment is affecting those with an intermediary degree of instruction and low degree of expertness.


Labor Force

We should cognize which people wants occupation and which do n’t in order to measure the range of the unemployment job. A batch of people do n’t hold a occupation but people such as those are non portion of our job. Students which study in full-time bases are non among the labour force which is defined as Peoples between 16-65 who are really working plus all those who are n’t working but actively looking for a occupation. For illustration, old people who live through their retirement are non considered as portion of a labour force. Furthermore, captives who condemned in gaol are non among the labour force. Housewifes are non a portion of the labour force except if they seek a occupation. However, kids under the age of 16 who are really concerned about their drama station are besides non considered as parts of the labour force. So, really labour force is about people who look for a paid occupation outside their houses which besides means that people working voluntarily are non considered as portion in the labour force.

In the other manus, people who are neither employed nor actively looking for a occupation are called nonparticipants. In labour force we count both the employed and unemployed people who seek occupations.


The sum of the sum of no institutionalised and citizen population over 16 old ages old, we count them citizen labour force.

The labour force engagement rate is fundamentally equal to the ratio of citizen labour force to the sum of no institutionalised citizen population over 16 old ages old. To gauge the labour force engagement rate we used the informations that obtained along with other labour force informations from the monthly current population study conducted by the Bureau of the Census for the Bureau of labour statistics.

Labor force

engagement rate



labour force

entire no institutionalised

civilian population

Labor force growing

Figure: P1.a ( NOT existent merely premise to do it easier to be understood for a reader )

Since the labour force continues to turn each twelvemonth and the population increases with go oning in-migration every bit good, this will spread out the production possibilities which cause us to bring forth more occupation vacancies in every twelvemonth. That is such a bad intelligence because so we will hold to bring forth about 1000000s of occupations more every twelvemonth to shut up the spread. Once the economic system finds itself unable to supply occupations to the increasing population UNEMPLOYMENT will be faced as a serious issue. UNEMPLOYMENT has several definitions ; one of these definitions is the people who are seeking for a occupation and ca n’t happen it through a precise amount of clip. Unemployment can be weighed up through dissimilar ways. One of them is taking in thought the sum of people who are employed and those who are fired.

( hypertext transfer protocol: //en.wikibooks.org/wiki/Macroeconomics/Definitions_of_Unemployment )

Measuring Unemployment.

Measuring Unemployment is one of stairss which help us to analyze, analyse, measure and set solutions for this occur, economic sciences are the most people who focus on the unemployment rate. A chief ground for this occurs is the normal addition in the figure of people employed due to population and labour force increasing. Statisticss of the unemployment serve many different intents, we need some information which indispensable to macroeconomic and human resources development planning and policy preparation, this information like steps of labour supply, the construction of employment and the extent to which available labour is really utilised.

Data Beginnings of Measuring Unemployment:

Administrative Records

Statisticss of unemployment can be drown from disposal records, in this manner we can registration informations which derived from records are based on complete counts, so they will non affected by trying mistakes, in add-on they are inexpensive to obtain. But besides this manner is limited because it merely cover little portion of the population which uses employment exchanges or is qualified for unemployment insurance benefits.

2. Family Surveies

In this beginning statistics of unemployment can besides be obtained from family or labour force studies, this study composed sample of family and inquiring people of working age about their employment activities and besides about handiness for work by utilizing standard questionnaire. This manner besides was limited because it depends merely on nature answers of people in the family study, so it will incorporate many different sort of mistakes.

Reasons of unemployment.

Discouraged workers

In economic sciences, a demoralized worker is person between 16 and 65 old ages old who is non keenly looking for employment. This normally happens because the individual has given up seeking or has had no achievement in happening a occupation, which is why he is called “ discouraged. ” His belief may be obtained from a mixture of factors numbering: a deficiency of occupations in their country or line of work ; evident favoritism for grounds, for illustration, age, race, sex and faith ; a deficiency of needed accomplishments, preparation, or experience ; or a disablement.

Discouraged workers, who are categorized as “ marginally attached to the labour force ” , “ on the borders ” of the labour force, or as portion of “ concealed unemployment ” , are non regarded as to be component of the labour force and are accordingly non counted in most official unemployment rates, which persuades the exterior and account of unemployment statistics.

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The look underemployment has three different separate significances and maps. All significances involve a province where a individual is working, unlike unemployment, where a individual who is seeking for work but can non happen it. All significances involve underutilization of labour that critics say [ weaselA words ] is neglected by a big sum of official ( governmental bureau ) categorizations and measurings of unemployment.

Underemployment can intend:

The employment of recruits with high accomplishment degrees in little rewards businesss that do non necessitate such abilities, for illustration a trained medical physician who works as a cab driver.

“ Involuntary part-time ” workers who would wish to be working for a full clip work but can merely hit upon parttime business.

“ Overstaffing ” or “ concealed unemployment ” , the pattern in which concerns provide work for people who are non to the full occupied — -for illustration, workers at present non being used to bring forth goods or services due to legal or societal restrictions or because the work is extremely seasonal.

( hypertext transfer protocol: //en.wikipedia.org/wiki/Underemployment ) .

The Human Cost of Unemployment

The unemployment causes the human cost, and there are many sorts of human costs.

Because we are portion of this universe, we must accept that there are casualties caused by unemployment and should be affected by losingss.

All the people traveling through these jobs, but non all of them have a manner to work out it.

For the Psychological Study of psychological jobs and upsets multiple base on ballss by persons as a consequence of these negative experiences and some of these psychological surveies to advert talk that the psychological symptoms continue even after the economic system improves which leades for work forces and adult females ‘s job to get down acquiring worse.

This stigma makes them off and cautious from the society, and possibly makes them more bleached. This increases the psychiatric unit that is the beginning of a psychological upset at the other, and resorts of ignorance or despair to alleviate the hurting do non like ab initio, including drugs or intoxicant. After a long period of ego begins Bloom, hates itself in a manner that we can non conceive of. This ball will be circulated once more and will be the beginning because the hatred of others and resent them.. , and the worst may revenge against them ( which means that the thought moved to negative behaviour or condemnable… etc.

Furthermore, the negative facets in the behaviour for the unemployment people are kiping for a long times and they become deficiency of sense in clip or societal and personal responsibly.

The work make the individual feel of his ain personality and his impotents in the society and when he lost it he experience that he lost his societal life and his personality every bit good.

Full Employment

It is clear that full employment is one of our major Goals in a state ‘s economic system. It is besides logical that there is no such a thing as ( zero unemployment ) . That is why the term, Full Employment, is carried by other factors. In fact, There are some grounds why full employment a‰ zero unemployment.

Seasonal Unemployment

Seasonal unemployment is defined as unemployment ensuing from a autumn in aggregative demand in some economic sectors ( and non the economic system as a whole ) . It could see some economic sectors ( ex. touristry as a sector, agribusiness, or fishing ) , periods of recession, taking to loss of forces in these sectors to their occupations temporarily.

Frictional Unemployment

It is a impermanent surcease of work due to the passage from one occupation to another, or intermission to seek for another occupation or to analyze and so on.

Structural Unemployment

Economists frequently use the term “ structural unemployment ” for employment jobs that arise because of a mismatch between the demands of employers and the accomplishments and preparation of the labour force. For illustration, if music schools were to educate many more oboe participants than could acquire places playing the hautboy, we might happen that many of them would hold to acquire occupations in other Fieldss. Missing preparation for other skilled Fieldss, some hautboy participants might be unable to acquire any occupations at all. This would be an case of structural unemployment.

Structural unemployment raises some inquiries. If an hautboy participant were offered a occupation as a disc jockey, at really good wage, and refused the occupation because it was non the field for which he was trained, what should we do of that? Is the oboe participant truly “ willing to work at the traveling pay? ” Or should we see the manque hautboy participant as being out of the work force — unwilling to work in the chances available to him?

On the other manus, people with small in the manner of developing suffer more than mean unemployment in most of the industrialised states. This suggests that structural unemployment is truly rather an of import job in the industrialised states at the terminal of the 20th century.

Cyclic Unemployment

It is the unemployment ensuing from the volatility of aggregative demand in the economic system, where economic system is confronting periods of low aggregative demand, ensuing in the loss of portion of the work force maps and accordingly ; a higher unemployment rate in the economic system. But it starts to worsen when demand starts to lift once more overall.

The natural rate of unemployment

scientists have agreed that the natural rate of unemployment or as they call IT, full employment, the rate of unemployment between 4 to 6 % .

UAE Unemployment

The oil monetary value roar of the 1970s resulted in huge economic development plans in the UAE and a deficit of national labour who are chiefly employed in the populace sector causes to dependence on foreign labour

In 1980 there were more than 80 % employment in the usage and all of them were non national.

In 1986, the falling oil made in United Arab Emirates to the high unemployment rate for the non national and it rise the figure of the unemployment national people they search for a occupation.

In making research in the 2003 show that there are 2.4 per cent is prepared for entire unemployment in the UAE national and non national, either at another degree, the unemployment rate among the national people of the State is 10.4, it ‘s besides shown The unemployment rate for adult females than work forces, where the per centum of adult females compared to work forces, 16.5 per centum and accounted for 8.4

The unemployment in UAE has a batch of negative effects on the society and the economic system

As a consequence of the sick effects of unemployment in the UAE society authorities decided to pull up Torahs that employ citizens in public countries for both.

Based on the deficiency of sufficient makings of national have asked the province authorities educational establishments n upgrading the degree of instruction among pupils in order to cut down the high degree of riparian State

Estimating Unemployment in Abu Dhabi

The United Arab Emirates has the lowest rate of unemployment of merely three per centum between its citizens on the Arab words.

Dr. Khalid Al Khazraji, Under-Secretary of the Ministry of Labor and Social Affairs, has said that the unemployment per centum between UAE citizens go beyond three per centum. On the other manus he noted that the state is about lacks a batch of statics on the size of the unemployment between UAE citizens. This rate is fundamentally calculated anticipation on which the authoritiess construct its programs and ploies for the employment of the UAE subjects in the populace and privets sectors. However the fact remnants that the influence of the UAE citizens to the private sector still weak for many grounds, some accredited to the involuntariness of national occupation searchers, while others to the involuntariness of companies.

Although the unemployment rate in 2004 was about 20.60 % , but this per centum of the unemployment does n’t impact the UAE ‘s place.

The Survey

Here is a simple study analysis which is used to think the unemployment rate in Abu Dhabi. And the questionnaire is promoted to cover the geographical country of Abu Dhabi.

Actually the study obtains the needful information on age, sex, degree of instruction, household size, employed and unemployed members of the household, and why they are non employed, continuance of unemployment, and types of occupations preferred.

However the study has been conducted by many ways such as mail distribution, phone cells, and personal interview on 500 households And the face reason of authorities functionaries from the Ministry of Labor.

The sample we selected it was depend on Cranach ‘s Coefficient Alpha ( 0.83 ) , the grade of assurance of the sample study is tested utilizing t- statics which are averaged 2 at 0.05 degree of assurance. For the other statistical shows were measured such as frequence, mathematical norm, and per centums.

Consequences and analysis

The consequences that are calculated from the returned study are presented in Table 2. The unemployment rate along with subjects in Abu Dhabi was found to be 16 per centum, and that is superior to the official estimates of 10.4 per centum and 6.5 per centum for the UAE and Abu Dhabi in that order. This is because instead to the bantam test size, and can be besides clarified by the diverse strategies used for appraisal, and the world that many households who have members that are at working age were barred from the labour force because they were non really looking for occupations or were changeless economically by societal assistance from the authorities or from unmitigated households. As awaited, the consequence shows a high per centum of subjects that favor working at public sector managerial occupations, and this will enlarge the unemployment rates. The analysis proposes that unemployment rate is tend to hike for many accounts, such as the amplified figure of alumnuss, the quality of instruction which market demand does non run into with, and the work milieus at the private sector with value to working hours and close public presentation dimensions which does locals are non attracted to. Finally, subjects still do non accept certain occupations because of society or that the occupations are non socially alluring.


The scrutiny recommends bettering the educational and developing system to suit labour market demands. It is besides suggested to bring forth more exact and modernized informations on the labour market including ( occupation searchers, employers, and occupation chances ) , and for more information to be provided and an educational run to be carried out to alter the attack of the UAE immature people in the way of working at the private sector. Further research is needed to revise the impact of unemployment on UAE economic system, adult females part in the labour force and acknowledging occupations favored by them, and mensurating subjects ‘ efficiency weighted against to that of the exiles, and eventually restudying the labour jurisprudence and regulations in visible radiation of globalisation and new scientific enlargements.


Kqwach Nadim ( Dec. 8, 2002 ) , “ UAE Unemployment one of the lowest ” UAE Economic,

Abu Dhabi.

MENA Development study ( 2004 ) , “ Unlocking the Employment Potential in the Middle East

and North Africa. Toward a aˆ¦aˆ¦aˆ¦aˆ¦ Social Contract ” . The World Bank, Washington,


UAE Ministry of Planning 2004, UAE, Abu Dhabi.

Muwia E. Ilbrahim, ( Jan. 22.2004 ) , “ Unemployment Spirals among UAE ” Nationals, Khaleej Times Online.

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