Labor Market Conditions in UK and UAEs: A Comparative Analysis

This paper analyzes the conditions of the labor market by comparing those in the United Kingdom (UK) and the United Arab Emirates (UAEs). It discusses the rate of employment, public and private sector employment, unemployment, economically inactive, and the significance of tight and loose labor market conditions.

Human Resource Management 1
HUMAN RESOURCE MANAGEMENT
by (Name)
Course
Professor's Name
Institution
Location of Institution
Date

Human Resource Management 2
Human Resource Management
Labor Market
A labor market is a place that supports the interaction between employers and employees
(Bratton and Gold, 2017, n.p). It gives employers an opportunity to hire qualified employees and
employees are required to perform their duties effectively and efficiently to achieve the goals of
an organization. This paper analyses the conditions of the labor market by comparing those in the
United Kingdom (UK) and the United Arab Emirates (UAEs).
Labor Market Conditions in the UK
In the UK, a person over the age of sixteen may be classified as employed, unemployed or
economically inactive (Gomes, 2012, p.170). The statistics on employment show all the people
being paid for work. It may be part-time or full-time. Unemployed people are those that have
been looking for a job within the last one month and there is a possibility of starting in the next
two weeks. Similarly, people who are unemployed do not have claim over any benefits. The
economically inactive are those that have not been looking for any form of employment for the
past one month, therefore, cannot start working in the next two weeks. A person may choose not
to look for employment due to taking care of the home and family, education, disability or
illnesses.
Inequality in the rate Employment
When it comes to employment, statistics agree with the number of people being paid and
not the jobs because some people hold more than one job. The rate of employment is measured
between the ages of sixteen and sixty-four. The comparison in the rate of employment between
men and women began in 1971. From that time, the rate of employment was at its lowest in
1983. An increase in the rate of employment between both genders was witnessed in 2012.

Human Resource Management 3
Between the months of June and August this year, the rate of employment rose from 75.1% to
75.5% (Checchi and García‐Peñalosa, 2010, p.433).
1978 1988 1998 2008 2018
0
10
20
30
40
50
60
70
80
90
100
UK emplyment rates (aged 16 to 64 years)
women people men
Rate of Employment (Forth et al, 2013, n.p).
2014 2015 2016 2017 2018
71.5
72
72.5
73
73.5
74
74.5
75
75.5
76
76.5
Rate of employment (aged 16 to 64)
Rate of employment Series 2 Column1

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Rate of Employment (Forth et al, 2013, n.p).
The rate of employment rose from 75.1% to 75.5% between the months of June and
August this year but this was lower than that of March which was 75.7%. The rate of
employment in men aged between the age of sixteen and sixty-four 80.1%. The rate of employed
men has reduced since 1991. The rate of employment in women aged between the ages of
sixteen to sixty-four continues to rise. Research shows that 71% of women are employed. This
number has increased within the past one year from 70.7% to 71.3% (Forth et al, 2013, n.p). The
increase in the rate of employed women is due to the changes in the terms of their pension
making few women retire between the age of sixty and sixty-five.
Public and Private Sector
The public sector employment is the number of employees under the local and central
government and public organizations. Private sector employment is determined by finding the
difference between the total employment and public sector employment. The reclassification
effects are the changes caused by the comparison of the public and private sectors of
employment (Clauwaert and Schömann, 2012, p.61). The graph below shows the estimation of
employment in both sectors without the effects. Between the months of March and June this
year, the rate of employment in the public sector dropped by four thousand because Welsh
housing association was transferred into the private sector. Without the transfer, the number of
public sector employment increased by sixteen thousand. Between June 2017 and 2018 the rate
of employment in the public sector reduced by one hundred and twenty-two thousand due to the
transfer. Without the effect, the number of employees in the public sector rose by thirty-four
thousand. Currently, the rate of employment in the public sector National Health Service is
30.9% and those in education are 28.3% (Forth et al, 2013, n.p).

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2014 2015 2016 2017 2018
1400
1450
1500
1550
1600
1650
1700
Public sector employment in National Health Service and education
National Health Service Education Column1
Public Sector Employment in National Health Service and Education (Forth et al,
2013, n.p).
Unemployment
Unemployed people are those that have been looking for a job within the last one month
and there is a possibility of starting in the next two weeks. The rate of unemployment by
determining the economically active people that do not have jobs (Gautié and Schmitt, 2010,
n.p). The lowest rate of unemployment was 3.4% in 1971 and the highest was 11.3% in 1984.

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Currently, the rate of unemployment is 4%.
2014 2015 2016 2017 2018
0
1
2
3
4
5
6
7
The rate of unemployment
women people men
The Rate of Unemployment (Forth et al, 2013, n.p).
1.36million people are unemployed, 733,000 of them are men while 630,000 are women.
Economically Inactive
The economically inactive are those that have not been looking for any form of
employment for the past one month, therefore, cannot start working in the next two weeks. In
1971, the rate of economic inactivity fell due to the reduction in the rate of economic inactive
women. In men, the economic inactivity rose. A person may choose not to look for employment
due to taking care of the home and family, education, disability or illness (Adsera, 2011, p.5).

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2 2 2 2 2
0
500
1000
1500
2000
2500
3000
Economic activity
retired sick taking care of home students
Economic Inactivity (Forth et al, 2013, n.p).
Labor Market Conditions in UAEs
In the United Arab Emirates, the labor conditions are classified as employed, unemployed
or economically inactivity. A person is allowed to work from the age of 15. The statistics on
employment show all the people being paid for work. It may be part-time or full-time. The
economy of UAEs grew in 1971 due to capital productivity (Campante and Chor, 2012, p.170).
UAEs has a total of nine million people. As of 2013 4.4 million of the total population were
employed.
Public and Private Sector
When it comes to the comparison between the public and private sector employment in
UAEs, the private sector has higher opportunities than the public. The public sector only holds
20% of the jobs. In the public sector, the amount of salary depends on the level of education and
experience (Burden‐Leahy, 2009, p.550). The profits in the private sector may be reduced
because they apply nepotistic hiring. This may cause a problem when it comes to the

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performance. The private sector pays based on performance. The difference between the two
sectors is the lack of competition. Lack of competition makes companies deliver services of poor
quality due to unavailability of improved technology.
Inequality in Rate of Employment
When it comes to the rate of employment in men and women. Men have the highest
percentage compared to women. In UAEs, it was believed that the women belonged at home.
Their duty was to take care of homes and family and had no time to acquire employment. Over
the years, the number of female employees is increasing due to the global fight on gender
equality (Itani et al, 2011, p.417). Even though it is increasing slowly and women do not hold the
same positions as men in the organizations, but they have an opportunity to go to work. UAEs is
far from embracing gender equality in organizations. In UAEs, women hold 19% of the jobs.
Unemployment
Unemployed people are those that have been looking for a job within the last one month
and there is a possibility of starting in the next two weeks. The rate of Unemployment in the
UAEs increased from 1.64% to 1.7% between 2016 and 2017. Between 2017 and 1985 the rate
of unemployment was 2.85% on average with the highest being 4.20% in 2009 and the lowest at
1.15% (Kapiszewski, 2017, p. 70).

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2010 2012 2014 2016 2018
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Rate of Unemployment
Unemployment rate Column2 Column1
Rate of Unemployment (Kapiszewski, 2017, p.70)
Economically Inactive
The economically inactive are those that have not been looking for any form of
employment for the past one month, therefore, cannot start working in the next two weeks. A
person may choose not to look for employment due to taking care of the home and family,
education, disability or illnesses. In UAEs, the total population of those who are inactive
economically is 51.6%. 35.7% of the population are students, 50.7% are men, and 30.5% are
women. 51.4% are housewives, and 9.2% are over the age of sixty-five (Kapiszewski, 2017,
p.75). When it comes to men, 7.6 are retired and 13.6% are over the age of sixty-five.
The Significance of Tight and Loose Labor Market Conditions
Additionally, the importance of tight and loose labor market conditions should be
discussed regarding employment, unemployment and their impact on the economy. The tight
labor market is when the economy is experiencing an almost full employment which makes the
recruitment process difficult and effects on wages. An economy that experiences almost full

Human Resource Management 10
employment rises the demand for the product leading to an increase in output (Lengnick-Hall et
al, 2013, p.371). This means that employees cannot be hired because they are few hence shifting
the demand labor curve to the right. This causes the wages of employees to rise because they
have a higher bargaining power. The importance of the tight labor market is that it increases the
rate of employment. An increase in the rate of employment improves the living standards of
people by reducing the rate of poverty thus leading to the growth of the economy.
Recruitment and Selection
Recruitment is the process of identifying a vacancy and formulating job descriptions,
personal attributes, and competencies in an organization. Selection, on the other hand, involves
choosing a qualified candidate to fill the vacancy (Swart and Kinnie, 2010, p.65).
Development of Job Descriptions, Person Specifications and Competency
Frameworks
A job description describes the qualification of a certain job in terms of duties and
responsibilities, purpose and scope. As time goes by, companies are considering job description
to be a form of the past and the present but a job description based on competence is of the
present and future. When it comes to the formulation of a job description, factors such as the
structure of the organization, analysis of the job, a description of the job and its forms have to be
considered. The structure of the organization arranges jobs into positions. Additionally, it shows
the relationship of people in an organization which may be formal or informal. Large
corporations embrace organizational structures that are bureaucratic and a top to down
management approach (Klett, 2010, p.278). Organizational structures also encourage teamwork.
Through teamwork, the employee gets to acquire knowledge and experience from others.
Workflow analysis is the process by which the organization applies feedback acquired
from the customers to improve the productivity of the products. In this case, the employees need

Human Resource Management 11
to be aware of the goals of the organization. Companies embrace advanced technology to
produce products of high quality. Qualified employees would get to perform their duties
effectively and efficiently to produce quality products at a lower cost. Job design involves an
analysis of job description, workflow, and organizational structure. When it comes to job
specifications, the description of a person needed for the job is given regarding the qualifications,
experiences, skills, and motivation (Eric Soderquist et al, 2010, p.331). Skills are shown when a
person performs his duties with confidence. A candidate needs to possess competencies that will
help achieve the plans of the company. An employee should be able to work under minimal
supervision, perform his duties as an individual or in a team, time conscious and flexible.
Legal Requirements in Relation to Recruitment and Selection
When it comes to the process of recruitment and selection the law has to be adhered to.
The organization should promote equality and protection of its employees. Candidates have a
right to be appointed to various positions regardless of their background and personality traits.
The process of recruitment and selection should be open and accessible to any qualified
candidates. The law exists to protect potential employees from discrimination (Stoilkovska et al,
2015, p286). In the process, the organizations are required to make adjustments that can
accommodate people with disabilities. The language used in the advertisements should not
discourage some people from applying for the job. During the interviews, the organization
should focus on the job description and not the candidate’s personal traits and background. Some
jobs may assess a person through tests. The tests should focus on the requirements of the job and
not personal information. The personal information should be confidential. The process of
recruitment and selection should observe equality (Stoilkovska et al, 2015, p286).
Strengths and Weaknesses of Using Social Media

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Various methods such as social media and agencies can be used in the recruitment and
selection process. Using social media in the recruitment and selection exercises has its strengths
and weaknesses. The application of social media is cost-effective. All an organization needs is a
computer and the internet connection. It is quick thus saves time and cost. The organization
would not need to print out forms or pay interviewers. Social media embraces advanced
technology. With improved technology, the process is carried out efficiently. Through social
media, the organization gets to meet many people (Parry and Wilson, 2009, p.664). This will
help the company acquire highly qualified employees. The company also gets to provide
information on its culture. This enables the employees to easily adapt to the organization. The
huge applications are handled in a consistent way. Consistency enables businesses to acquire
feedback and top talent in the market. The weaknesses of social media are that the company may
get inappropriate applications. This happens when an applicant has not gone through the job
specification. The technical difficulty may destroy the brand of the organization by scare
potential applicants. Social media is discriminatory especially to those who are not computer
literate.
Strengths of using social media Weakness of social media
Cost efficient
Quick
Improved technology
Global reach
Vacancy wide known
Supports the brand
Consistency
Inappropriate applications
Technical difficulty
Promotes discrimination

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Strengths and Weaknesses of Using Agencies
Agencies can also be used in the recruitment and selection exercise. The strengths of
using agencies is that they are experts in the recruitment market. Agencies have knowledge of
the market and know what is best for the company (Coff and Kryscynski, 2011, p.1435). The
knowledge they possess makes it easier for them to detect top talent quickly. It is cost-efficient
because the company only gets to pay once hiring is done. Therefore, the organization does not
face any risk. Minimal administration in the company thus enabling it to focus on accomplishing
the goals of the company. The weaknesses of using agencies are that an agency can only have
one database. They may apply “scatter gun” approach (Oyer and Schaefer, 2010, n.p). The
agencies may send many people to the companies that do not meet the expectation of the
employer. All they are interested in is the fee. The applicants may want to deal with the
employers. Lastly, agencies are costly to the company.
Strengths of using agencies Weaknesses of using agencies
Experts on the market
Quick
Top talent applicants
Preference of dealing with agencies
Minimal administration
No risks incurred during hiring
Costly
“Scatter gun” approach
Preference of dealing with the
employer
Scarce resources
Methods of Employee Retention
Employee retention involve formulating strategies that will ensure employees do not
leave. Employees can be retained through training and an increase in wages.
Training and Development

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Through training, the organization stays ahead of the competition. The employees would
be motivated to perform their duties effectively and efficiently to produce products of high
quality. These products will satisfy the needs of the customers thus staying ahead of the
competition. Staying informed on improved technology. With improved technology customers
could acquire feedback from the clients. The information acquired could be applied to producing
quality products. Training and development enhances confidence in performing tasks
(Thunnissen et al, 2013, p.331). The employees are also motivated to achieve the goals of the
company. The weaknesses of training and development are that they waste time and money.
Time wasted on training could be used performing other duties that are beneficial to the
company. A trained employee may choose to go to another company. Lastly, training increases
stress.
Money
Increasing the salaries of employees motivates them to perform their duties effectively
and efficiently to accomplish the plans of the business. Motivated employees will produce goods
and services of high quality thus meeting the expectation of the customers. Satisfying the needs
of the customers enables organizations attracts customers thus earning more profits. A rise in
returns leads to the growth of the organization. The weaknesses of increasing salaries are that it
increases the rate of unemployment. The company spends too much money on the current
employees thus restraining them from employing others (Shen and Hall, 2009, p.802). Increase
in wages also makes it difficult for the organization to manage the budget. Finally, the company
may find it difficult to maintain its operations.
How to Become an Employee of Choice

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For an employer to become the employee’s choice, he has to possess impeccable
communication skills. An employer needs to be honest and respectful to his employees. Second,
an employer should be accountable. He should take responsibility for his actions and not give
excuses when a crisis occurs. Third, a focused employer will attract employees. The focus should
be on achieving the plans of the company. Fourth, cooperation and teamwork should be
embraced. The duty of the employer is to bring out the bests in workers. This can be
accomplished through teamwork and cooperation. Fifth, the employer should promote equality
(Elving et al, 2013, p.360). Employees should be given an opportunity regardless of their gender,
religion, status in society and race. Lastly, an employer should be a good listener. Through
listening, the employer may get new ideas from the employees.
Talent Planning
Workforce planning involves analyzing and assessing vacancies and determining top
talent that will ensure the organization operates efficiently to achieve its objectives (Pilbeam and
Corbridge, 2010, n.p).
Principles of Workforce Planning
The principles of workforce planning are; the strategic directions that show the goals and
objectives of the company and how they can be achieved. Supply analysis involves the study of
today’s workforce and the projection to the future depending on the trends. Demand analysis
needs one to understand the requirements of today and tomorrows workforce. Gap analysis
requires the understanding of the difference in the demand and supply of labor. Implementation
involves the determination of top talent that would help in achieving the plans of the business.
Finally, monitoring progress involves monitoring hired employees and their impact on the
company thus enabling the company to operate efficiently. The above principles lead in the

Human Resource Management 16
discussion of the role of the government, employer and trade unions in ensuring future skills are
met.
The Role of the Government
The government provides companies with the permission to start through offering them
certificates. Second, it protects the rights of employees. The government ensures that the
organization promote equality and protect the personal information of employees. The workers
also work in a safe environment. Third, the government protects the customers. Clients are
protected by ensuring the products supplied to them meet the standards set (Steedman, 2012,
n.p). This encourages companies to produce products of high quality. Fourth, the environment
and the community are protected. Companies are required to operate within the set standards.
These standards protect the environment and the community at large. The society is protected by
leading a healthy life. Lastly, the government acquires taxes from the businesses thus leading to
the growth of the economy.
The Role of the Employer
An employer needs to be honest and respectful to his employees. Second, an employer
should be accountable. He should take responsibility for his actions and not give excuses when a
crisis occurs. Third, a focused employer will attract employees. The focus should be on
achieving the plans of the company. Fourth, cooperation and teamwork should be embraced. The
duty of the employer is to bring out the bests in workers. This can be accomplished through
teamwork and cooperation. Fifth, the employer should promote equality. Employees should be
given an opportunity regardless of their gender, religion, status in society and race (Steedman,
2012, n.p). Lastly, an employer should be a good listener. Through listening, the employer may
get new ideas from the employees.

Human Resource Management 17
The Role of Trade Unions
The role of trade unions is to settle disputes in an organization. When an issue arises
between the employer and the owner, trade unions come in as arbitrators. It also applies
collective bargaining to save time for the organization. Collective bargaining protects workers
from being fired without reason (Steedman, 2012, n.p). Lastly, it reduces the rate of turnover.
They ensure employees have job security, treated fairly and comfortable.
Succession and Future Planning and Learning and Development
Workforce planning promotes succession and future and learning and development.
When it comes to succession and future, we will focus on linking current staff and future roles.
This can be done by embracing improved technology. With advanced technology, the workers
will be motivated to perform their duties effectively and efficiently thus improving productivity
(Calareso, 2013, p.27. Productivity can be improved through learning and development. An
organization needs to set goals in order to promote learning and development. Setting goals will
motivate employees to work hard in order to accomplish them.
Downsizing
Downsizing is the process of reducing employees in an organization (Redman, 2016,
n,p).
The Role of HR in Contributing to Downsizing Plans
Human resource contributes to downsizing plans through; communication. The employer
needs to communicate with employees on the plans of downsizing before carrying out the
exercise. This will give them time to plan for their future. Second, employees need to be trained
and educated on the issue of downsizing. The workers have to understand that it takes a team to
restructure an organization. Third, human resources should promote equity and fairness during

Human Resource Management 18
the exercise. When the top management of the organization appears not to be affected by the
downsizing process, the morale of the workers would be affected negatively. Affecting the
morale of employees will reduce productivity in a company. Products of low quality will fail to
meet the expectations of the customers thus reducing sales and profits. Fourth, human resources
need to maintain a managed approach. Downsizing will obviously affect the operations of the
organization. The company needs a qualified person who will ensure it runs smoothly. Closely
monitoring of the business will ensure an issue is solved once it arises thus improving its
efficiency. Lastly, human resources provide leadership support (Zatzick et al, 2009, P.79). The
best person to provide information on downsizing is the top management. The top personnel of
human resources should always be available to answer questions whenever they arise. During the
process of downsizing, workers are always exposed to feelings of uncertainty, fear, and anger
thus needing someone to be there give them correct information. Without possessing these
impeccable leadership skills the moral of employees will reduce. Affecting the morale of
employees will reduce productivity in a company. Products of low quality will fail to meet the
expectations of the customers thus reducing sales and profits.
Management of Redundancy that Complies with Current Legislation
Moreover, human resources need to abide by the law when applying different methods of
downsizing such as retirement, dismissal, and redundancy. “Redundancy is a situation where the
position of employment of an employee is or will become surplus to the requirements of the
Employer's business" (Viljanen et al, 2009, n.p) First, an employer is acting within his right to
carry out redundancy on the grounds of misconduct. An example of misconduct is poor
timekeeping and speaking to the employer in an informal way. Continued misconduct is a
legitimate reason to apply the process of redundancy. Second, poor performance can lead to

Human Resource Management 19
dismissal. An employee who performs his duties poorly reduces productivity. A reduction in
productivity fails to satisfy the needs of the customers. The inability to meet the expectation of
the customers leads to reduced sales and profits. A fall in returns prevents the organization from
growing (Cho et al, 2011, p.115). Third, redundancy is a legitimate ground to lay-off workers.
Redundancy is when a company needs few or no workers. A business may need few or no work
when it is closing down, changing locations, less work to be done and reorganization. Lastly,
redundancy is carried out when the organization breaches restrictions.
Management of Retirement that Complies with Current Legislation
When it comes to retirement, no law determines that age at which one needs to retire. An
employee is allowed to work until he decides by himself that time has come for him to retire.
When he makes this decision, he needs to give the employer a notice on the period agreed in the
contract (Muller-Camen et al, 2011, p.519). An organization can facilitate a smooth retirement
process through phased retirement or flexible. Phased retirement involves an employee reducing
his working hours while receiving a pension.
Turnover
Turnover involves determining the percentage of employees who leave jobs and those
that replace them (Davenport et al, 2010, p.53).
Reasons why People Choose to Stay or Leave an Organizations
Reasons, why people stay or leave the organization, are;
Stay Leave
An employee will choose to stay when
he feels that he is part of something special.
If they possess talents that enable
An employee may choose to leave if
the relationship between him and the boss
does not exist.

Human Resource Management 20
them to work efficiently for a certain purpose
and meaning.
Being part of something special helps
them to contribute to making a difference.
If they have unique talents that make
employer respect and appreciate them.
If they have co-workers that are
talented and gifted thus being an inspiration to
them.
If they are mentored and encouraged
to achieve their full potential.
If they trust that leadership will
always act fairly.
If they invest emotionally in their
duties and the company.
If the culture is empowering and
trustworthy leads to the conclusion that it is
irreplaceable.
If they are certain on the security of
their jobs and the compensation is fair.
If the work does not challenge, may
result in boredom.
If there is a hostile relationship
between him and the coworkers.
If they do not have an opportunity to
explore their abilities and skills.
If they do not feel appreciated for their
contribution to achieving the goals of the
company.
If there is no independence,
empowerment, and autonomy in the company.
If he feels that his job has no meaning.
Lack of information on the financial
stability of the company.
If the top management does not
recognize his performance in the business.
If he is not satisfied with the culture of
the organization.
(Davenport et al, 2010, p.55).
Costs Associated with Dysfunctional Employee Turnover

Human Resource Management 21
The costs associated with dysfunctional employee turnover are direct and indirect costs.
When it comes to direct costs, we have separation, recruitment and training costs (Wallace and
Gaylor, 2012, p.27. Separation costs are costs incurred after the loss of a worker. These are costs
associated with exit interviews, packages, and extended benefits. Recruitment costs are those
incurred when replacing the employee. Finally, training costs incurred when equipping a new
employee with the necessary knowledge and skills to perform his duties effectively and
efficiently. Indirect costs are a reduction in morale and performance. A reduction in moral and
performance affects the productivity of a company. Products of low quality will fail to meet the
expectations of the customers thus reducing sales and profits.
Fair Reasons for Dismissal
Additionally, the organization needs to adhere to the law when it comes to dismissal. An
organization is justified to dismiss an employee on the grounds of misconduct. An example of
misconduct is poor timekeeping and speaking to the employer in an informal way. Continued
misconduct is a legitimate reason for dismissal. Second, poor performance can lead to dismissal.
An employee who performs his duties poorly reduces productivity. A reduction in productivity
fails to satisfy the needs of the customers (Cho et al, 2011, p.115). The inability to meet the
expectation of the customers leads to reduced sales and profits. A fall in returns prevents the
organization from growing. Third, redundancy is a legitimate ground to lay-off workers.
Redundancy is when a company needs few or no workers. A business may need few or no work
when it is closing down, changing locations, less work to be done and reorganization. Fourth,
dismissal is carried out when the organization breaches restrictions. Lastly, an employee may be
dismissed when his contract expires.
A Lawful Disciplinary Process and Notice Periods

Human Resource Management 22
Employees and employers have a right to receive notices before termination of
employment. Employers have to provide employees with a notice if they have been working for
them for over one month. A notice of one week is given to an employee who has been working
for the company for less than two years. A one week notice for each year for a worker who’s
worked for two to twelve years. For employees who have worked for the company for over two
years are given a twelve-week notice (Marchington et al, 2016, n.p). An employee is required to
give a one week notice no matter the period of time he’s worked for the organization. Failure to
follow these notice stipulations may be considered a breach of contract.
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