Hiring fell three per cent across the GCC in the second quarter of 2026, reversing the modest growth seen in Q1. According to recruitment firm Cooper Fitch, regional disruption and weaker visibility have significantly raised the bar for approving new roles.
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 the April-June 2026 period.
Firms are currently prioritizing positions linked to active delivery, revenue protection, financial control, regulatory requirements, and operational continuity. Broader expansion hiring has become harder to justify, particularly in markets affected by weaker private sector activity, disrupted trade routes, and longer approval cycles.
The regional war began on February 28 when US and Israel launched attacks against Iran’s military infrastructure and top political leadership. Due to the ongoing conflict, the World Bank has cut its 2026 GCC growth forecast to 1.3 per cent from 4.4 per cent, though government programs and domestic demand continue to support hiring in essential roles.
“Nothing kills growth like uncertainty,” said Dr. Trefor Murphy of Cooper Fitch, describing the past four to five months as particularly challenging. He noted the volatility of the current climate, stating, “We’ve gone from everything seeming fine, to closed again, to open again.”
Despite the decline, Dr. Murphy suggested the results were better than expected following a severe 13 per cent drop in March. “I thought it would be much worse. A 3 per cent overall drop is not bad,” he remarked, noting that organizations are still interviewing but delaying final decisions by several weeks.
Regional performance varied significantly during the quarter. The UAE saw a 4 per cent decline as disruptions weighed on spending and supply chains. Kuwait also fell 4 per cent, with its PMI remaining below 50 for a fourth straight month. Bahrain declined 2 per cent, partially cushioned by its Unemployment Insurance Fund, while Oman grew 1 per cent, aided by ports offering routes beyond the Strait of Hormuz.
Qatar experienced the sharpest decline at 6 per cent, largely due to its reliance on energy exports and specific shipping routes. Conversely, Cooper Fitch data showed hiring in investment finance rose 6 per cent, followed by finance at 5 per cent, data and AI at 4 per cent, and cyber at 2 per cent. Dr. Murphy attributed these gains to a timing effect, noting that many firms simply did not hire in the first quarter.
Firms are essentially preparing for a return to normal, though the timeline remains unclear. Stay up to date with the latest news by following KT on WhatsApp Channels. Waheed Abbas, an Assistant Editor covering business and real estate, continues to track these developments as they affect the broader Gulf economy.
I don’t think there’s any reflection of the market in that.”
“Organisations aren’t putting recruitment on hold, but they’re not hiring anyone either.
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.
He frequently reports human interest stories, too.
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