Hiring activity across the Gulf Cooperation Council (GCC) region fell by 3% during the second quarter of 2026, marking a reversal of the modest growth observed in the first quarter. Recruitment firm Cooper Fitch noted that regional instability and diminished market visibility have significantly raised the threshold for approving new personnel.
The downturn was most pronounced in sectors including software, sales and marketing, public administration, cloud computing, supply chain management, legal services, and human resources. As market conditions grew more challenging between April and June 2026, many organizations scaled back expenditures, making it increasingly difficult to justify expansion-focused hiring.
Dr. Trefor Murphy of Cooper Fitch highlighted that the last four to five months have been particularly difficult for businesses. “Nothing kills growth like uncertainty,” he stated, noting that the business environment has fluctuated unpredictably between periods of perceived stability and sudden closures. He added that while organizations are not necessarily freezing recruitment, they are stalling the process, often keeping candidates in a cycle of interviews without finalizing offers.
The regional military conflict, which escalated following attacks on February 28 involving military infrastructure and leadership in Iran, has impacted economic forecasts. The World Bank has adjusted its 2026 GCC growth projection downward to 1.3%, compared to an earlier estimate of 4.4%. Despite this, firms continue to prioritize essential roles related to operational continuity, revenue protection, financial control, and regulatory compliance.
Country-specific data shows varied impacts across the region. Qatar experienced the sharpest decline at 6%, largely due to its heavy reliance on energy exports and vulnerable shipping routes. Both the UAE and Kuwait saw 4% drops, with Kuwait’s Purchasing Managers’ Index (PMI) remaining below 50 for the fourth consecutive month. Bahrain recorded a 2% decline, though its impact was partially mitigated by the national Unemployment Insurance Fund. Conversely, Oman saw 1% growth, benefiting from port access that bypasses the Strait of Hormuz.
Despite the broader contraction, certain specialized sectors saw hiring increases. Investment finance roles grew by 6%, followed by general finance at 5%, data and AI at 4%, and cybersecurity at 2%. Dr. Murphy characterized these gains as a timing effect, suggesting they reflect a rebound from low hiring levels in the first quarter rather than a broader market trend.
The regional climate remains defined by disrupted trade routes and longer approval cycles. While firms are preparing for a return to normal operations, the lack of clarity regarding when that stability will arrive continues to weigh on corporate decision-making. Dr. Murphy noted that while a 3% decline is concerning, it is better than the 13% drop observed in March, suggesting that the market has avoided a more severe downturn. The report also notes that 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 quarterly survey’s findings revealed that recruitment dropped mostly in software. The report also notes that two tankers on fire after hitting mines in Strait of Hormuz: IRGC. The report also notes that iran security chief says US to face new war strategy after strikes. The report also notes that sharjah Ruler orders Sudan Private School to return fees after parent’s complaint. The report also notes that stay up to date with the latest news. The report also notes that “We’ve gone from everything seeming fine, to closed again, to open again.”. The report also notes that a 3 per cent overall drop is not bad,” he said.
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