DUBAI, UAE — Doha and Dubai have emerged as the global cities with the most competitive job markets, according to a recent study by Resume.io.
The research, which analyzed the number of applications per job post on LinkedIn during February, examined a total of 130 global cities, as well as every US state.
Qatar’s capital, Doha, topped the list, attracting an astonishing 399 applicants per job vacancy, followed closely by Dubai, which averaged 282.9 applications.
Istanbul, Turkey, emerged as the third most competitive market with 168.3 applications per job, while Johannesburg, South Africa, and Abu Dhabi rounded out the top five with 160.2 and 148.8 applications, respectively.
Qatar’s impressive performance is partly due to its hosting of the World Cup last year, for which it has invested over US$ 250 billion in infrastructure since 2010. Despite international scrutiny over its labor practices, Qatar continues to attract job seekers with policies such as a minimum wage and tax-free income.
10 most competitive job markets
| City | Country/State | Average Applicants Per Job |
|---|---|---|
| Doha | Qatar | 399 |
| Dubai | United Arab Emirates | 282.9 |
| Istanbul | Turkey | 168.3 |
| Johannesburg | South Africa | 160.2 |
| Abu Dhabi | United Arab Emirates | 148.8 |
| Madrid | Spain | 115.7 |
| San Jose | California, United States | 107.6 |
| Buenos Aires | Argentina | 104.1 |
| San Francisco | California, United States | 91.9 |
| Tel-Aviv | Israel | 82.5 |
Similarly, Dubai and Abu Dhabi’s competitive job markets are partly due to the lack of income tax imposed on workers. As per LinkedIn data, demand for medical specialists and digital content-related roles have surged in the post-pandemic phase in the UAE.
The government has sought to make its job markets more attractive to international talent by introducing incentives such as the Golden Visa for highly skilled foreign individuals, tax-free income, and relaxed business startup requirements.
Global scenario
In the United States, cities in Northern California demonstrated high competitiveness. The heart of Silicon Valley, San Jose, attracted 108 applicants for every job posted on LinkedIn in February, followed by San Francisco with 92 applicants. Despite these cities offering relatively high average salaries, they also rank among the world’s most expensive places to live.
Layoffs at major tech firms like Meta Platform, Google, and Alphabet have increased the pool of available talent. With a nationwide hiring freeze in effect, the tech industry is experiencing a downturn in job vacancies.
Other major American cities like New York and Chicago have also seen high levels of competition, attracting over 80 and about 50 applicants per job, respectively, but did not make it to the global top 10.
Resume.io noted in their report that the average job applicant in 2018 had fewer than 50 competitors. However, with the ongoing “Great Resignation” trend, employers now have a seemingly limitless pool of candidates to select from.
The Great Resignation refers to the wave of workers in developed economies quitting their jobs in pursuit of a more flexible work-life balance and higher wages, a trend that was triggered by remote work during the Covid-19 pandemic. In 2022, around 4.2 million Americans quit their jobs for better work conditions and wages, according to the U.S. Bureau of Labor Statistics.
Global employment
Global employment growth is expected to slow to 1 percent in 2023, down from 2 percent in the previous year, as per the International Labour Organization. The number of unemployed people worldwide is also projected to increase by three million to 208 million this year.
The report also highlighted potential challenges due to emerging geopolitical tensions, the conflict in Ukraine, an uneven recovery from the pandemic, and continued bottlenecks in supply chains, setting the stage for the first period of high inflation and low growth since the 1970s.
Meanwhile, Illinois emerged as the U.S. state with the most competitive job market, with 60.6 applicants per job posting within a week. San Jose, in California, outpaced all other U.S. cities with 107.6 applicants. San Jose, better known as Silicon Valley, houses some of the world’s biggest tech companies, such as Meta Platforms, Apple, Nvidea, Google parent Alphabet, and PayPal. The tech sector has experienced significant layoffs, with more than 164,709 workers let go in 2022 alone and a further 210,269 employees losing their jobs in 2023, according to layoffs.fyi.
Resume.io added, “Job hunters eyeing San Jose might be lured by the high average salary. However, as Silicon Valley’s unofficial capital, competition is likely fierce due to local job hunters affected by mass tech company layoffs in late 2022.” In the San Jose metro area, software-related and IT job listings have plummeted by 45 percent and 37 percent, respectively, since the Covid-19 pandemic.
Economic uncertainty
Despite global economic uncertainty, the UAE’s job market, the second-largest Arab economy, has shown strong recovery from the pandemic-induced slowdown, backed by the government’s fiscal and monetary measures. The UAE has implemented several economic, legal, and social reforms to enhance its business environment, attract foreign direct investment, attract skilled workers, and provide incentives for companies to expand their operations.
A survey conducted by jobs portal Bayt.com and market research company YouGov revealed that 91 percent of professionals in the UAE are optimistic about their future success in the workplace, stating they have the skills to adapt to the evolving job market over the next decade.
Resume.io concluded, “It’s likely that many job hunters with Dubai in their sights have got the message that, like Doha, employees here can take home their entire salary due to no income taxation.”