Gulf job openings dip 3% amid war disruptions

By Courtney Rivera 15/07/2026 3 min read 36 views

Gulf job openings fell by 3% in the second quarter as regional conflict, disrupted trade routes, and rising costs pushed companies to delay recruitment and focus on essential roles. The decline, recorded by leading recruitment agency Cooper Fitch, marked a reversal from the modest growth recorded in the previous quarter and signalled a more cautious hiring market across the GCC.

Hiring activity fell far more sharply at the start of the disruption. In March alone, the company recorded a 13% month-on-month reduction in job opportunities across the GCC. According to Trefor Murphy, founder and CEO of Cooper Fitch, this reduction is significant, with many organisations not hiring in that period.

Murphy said, “In March, we saw a 13% reduction. That is basically a significant amount of organisations not hiring. It is close to a stopping of everything in a single-month period.

Hiring did not collapse completely, Murphy said, but companies became much more selective. “It is not a wholesale stop,” Murphy said. “Organisations are still hiring, but recruiters are closer to 80% busy rather than 100%. The market is moving, just with a much higher threshold for approving new roles.”

Cooper Fitch said employers prioritised positions linked to active delivery, revenue protection, financial control, regulatory requirements, and operational continuity. Broader expansion hiring became harder to justify as regional uncertainty weakened business visibility and raised transport, energy, and commodity costs.

Qatar recorded the steepest contraction in the GCC, with job opportunities falling 6% in Q2. The decline reflected the country’s exposure to energy exports, international trade, and Gulf shipping routes, as well as weaker new orders and client activity.

Kuwait followed with a 4% decline as weakness in its non-oil private sector deepened. Its PMI fell to 46.4 in June, remaining below the 50-point threshold for a fourth consecutive month.

Bahrain recorded a 2% decline, although government intervention helped cushion pressure on private-sector employment.

Saudi Arabia and Oman were the only Gulf markets to record growth, both rising 1%. Murphy said the two markets benefited partly from geography and trade routes that reduced their dependence on the Strait of Hormuz.

Saudi Arabia can move goods and energy through routes linked to the Red Sea, while Oman’s ports at Sohar, Duqm, and Salalah gave businesses access to shipping lanes outside the strait.

The growth in Saudi Arabia was supported by domestic investment, Vision 2030 delivery, industrial development, and continued private-sector activity. Murphy said the Public Investment Fund and its portfolio companies remained active recruiters.

Despite the overall decline, hiring demand remained strong in selected sectors, including investment management, mining, finance.

Investment management and mining recorded the fastest growth, both rising 6% in Q2. Finance grew 5%, while cybersecurity, governance, risk and compliance, manufacturing, and real estate each rose 2%.

Murphy said investment firms often become more active during periods of disruption as valuations shift and opportunities emerge. “Things are cheaper, so buy more of them, hold them and build them back up.”

Mining was also a standout sector, driven by Saudi Arabia’s mineral development plans, exploration licensing, and growing regional demand for specialist roles in geology, engineering, metallurgy, and project delivery.

The contraction may prove temporary or become more entrenched.

Improved trade, travel, and business visibility could release hiring decisions that were postponed during Q2.

However, continued disruption could begin to affect project schedules, workforce planning, and the pace at which companies replace or expand capability, which may lead to a more cautious approach to hiring in the GCC for the remainder of the year.