GCC HIRING FALLS 3% IN Q2 AS STRAIT OF HORMUZ DISRUPTION BITES

Hiring fell three per cent across the GCC in the second quarter of 2026, reversing modest growth in Q1, as regional disruption and weaker visibility raised the bar for approving new roles, according to recruitment firm Cooper Fitch.

The quarterly survey’s findings revealed that recruitment dropped mostly in software, sales and marketing, public sector, cloud, supply chain, legal and human resources sectors as firms pulled back on their budget expenditures amid tougher market conditions during April-June 2026 period.

The firms are, according to Cooper Fitch, prioritising positions linked to active delivery, revenue protection, financial control, regulatory requirements and operational continuity.

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“Broader expansion hiring became harder to justify, particularly in markets affected by weaker private sector activity, disrupted trade routes and longer approval cycles,” it said.

“Nothing kills growth like uncertainty,” said Dr Trefor Murphy of Cooper Fitch, describing the past four to five months as particularly challenging. “We’ve gone from everything seeming fine, to closed again, to open again.”

Due to the regional military conflict involinv the US, Israel, Iran and Gulf countries, the World Bank cut its 2026 GCC growth forecast to 1.3 per cent from 4.4 per cent, though government programmes and domestic demand continued to support hiring in roles tied to delivery, financial control and regulatory compliance.

Murphy said the survey’s findings are better than expected due to severe drop in hiring in March.  

“I thought it would be much worse. We saw a drop of 13 per cent in a single month in March. A 3 per cent overall drop is not bad,” he said.

The regional war began on February 28 when US and Israel launched attacks against Iran’s military infrastructure and top political leadership.

“Organisations aren’t putting recruitment on hold, but they’re not hiring anyone either. They’re actively interviewing... and then they say they just need a couple more weeks,” added Dr Murphy.

Firms, he said, are “basically getting ready to return to normal”, but they just don’t know when normal will arrive.

Country performances

Qatar saw the sharpest decline, down 6 per cent, on its reliance on energy exports and shipping routes.

The UAE declined by 4 pre cent in Q2 as regional disruptions weighed on spending, supply chains, and approvals. Recruitment remained active in finance, compliance and delivery-focused roles, but broader commercial hiring slowed.

Kuwait fell 4 per cent, with its PMI below 50 for a fourth straight month. Bahrain declined 2 per cent, cushioned by its Unemployment Insurance Fund, while Oman grew 1 per cent, helped by ports offering routes beyond the Strait of Hormuz.

Sectoral performance

According to Cooper Fitch data, hiring in investment finance rose six per cent, followed by finance (5 per cent), data and AI (4 per cent), cyber (2 per cent).

Murphy said this was largely a timing effect: “They just didn't hire much in quarter one... I don't think there's any reflection of the market in that."

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2026-07-14T12:29:27Z