Percentage

0
1
2
3
4

0.5
1.5
2.5
3.5
4.5
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004

Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1996
1995
1994
1993
1992
1991

1997

2017
2018
 Economic Analysis on Unemployment

The oil price boom of the 1970s resulted in vast economic development programs in the
United Arab Emirates and a shortage of national labor who are mainly employed in the public
sector, which led to more reliance on imported labor. In the mid-1980s, the non nationals
represented more than 80 percent of the total labor force (MENA Development Report 2004). The
fall in oil prices in 1986 caused the share of non-national labor to decline, and an increase in the
numbers of nationals looking for jobs. This trend continued in the 1990s and the following years
because of the demographic pressures. Also, during the 1970s the urban population notably
increased which resulted to increasing active working population in 1995. It has also been realized
that in the year 1995 women comprised 11.7% of the labor force, a substantial increase from the
1975 levels where women’s participation was at a negligible 3.3%. There is a rising trend that can
be assumed that women’s participation in the labor force has and will continue to rise. The
declining oil prices continued throughout the years thus making a cut into the United Arab
Emirates’ economic growth between 1992-1996 in which the annual average rate did not exceed
1.1%. Another factor limiting United Arab Emirates' oil income is Japan's weak economy, since
Japan accounts for 60% of the UAE's oil exports. Even when Japan’s economy improves, the
United Arab Emirates’ oil exports to Japan continues to grow since Tokyo is diversifying its oil
sources and building strategic, oil partnership w/ Saudi Arabia. This moved the United Arab
Emirates’ to invest to other Asian countries thus making UAE dependent on foreign labor. In 1996,
the expulsion of 300,000 expatriates causes labor shortage. That is why in 1997, some expatriates
returned to UAE. In 1998, the unemployment rate increases because of the come back of the
expatriates. Contrary to the preceding years, in the year 2000s were the years of soaring oil prices
which gave a new impetus to the hiring of large numbers of foreign workers from everywhere in
the world, including the Arab states. Two-digit rates of economic and demographic growth during
the decade propelled this new phase of development, characterised by attempts to reduce the
country’s dependence on oil exports and diversify the economy. These development or soaring of
high oil prices opened up a lot of vacancies offering the people the opportunity to work may it be
Emirati or non-Emirati. High price of oil means high number of high manpower needed and with
decrease of oil price means a job opportunities slow down. In the year 2000 the oil price had
increase indicating an increase in demand of manpower or job opportunities and a decrease in
unemployment rate from 2.11% in 1999 to 2.25% in 2000. Continuous opening of job
opportunities gives people work, decreasing the number of unemployed labor force. The year 2000
of United Arab Emirates decrease in unemployment rate is due to the increase in oil prices. The
economy of the United Arab Emirates continues to grow, while human rights progress remain
scant. This growth have systematic violations of the migrant workers that have also led to striking
health disparities. Human trafficking started to become a serious concern for the UAE in 2007
which contributed to the increased unemployment rate of the country with its highest peak reached
4.2% in 2009, according to The World Bank. Most of the striking migrant workers have had their
passports confiscated and wages have been withheld, others have been deported. It also affected
its surrounding countries which led a committee of senior officials to order the closing of 40 hotels
and clubs known for prostitution, and publicly deported 4,300 sex workers.