Hiring across the GCC fell by 3% in the second quarter of 2026 as geopolitical tensions, disrupted trade routes and growing business uncertainty prompted organisations to delay recruitment decisions, according to recruitment consultancy Cooper Fitch.
The decline reverses the modest hiring growth recorded in the first quarter. Employers became more cautious during April to June as the regional conflict disrupted supply chains, weakened private sector activity and extended approval timelines for new roles.
Despite the slowdown, companies continued to recruit for business-critical positions. Hiring remained strongest in investment finance, finance, data and AI, and cybersecurity, reflecting a continued focus on operational resilience, regulatory compliance and financial control.
Employers prioritise critical roles over expansion hiring
The report found that companies reduced recruitment across software, sales and marketing, the public sector, cloud computing, supply chain, legal and human resources.
Instead of expanding headcount, employers focused on roles that support revenue generation, regulatory requirements, financial oversight and operational continuity.
According to Cooper Fitch, businesses found it increasingly difficult to justify expansion hiring as market visibility weakened and trade disruptions affected business confidence.
‘Nothing kills growth like uncertainty,’ says Cooper Fitch CEO
Dr Trefor Murphy, CEO of Cooper Fitch, said the past few months have created one of the most challenging hiring environments in recent years.
“Nothing kills growth like uncertainty. We’ve gone from everything seeming fine, to closed again, to open again.”
However, Murphy noted that the overall decline was less severe than anticipated after recruitment dropped sharply in March.
“I thought it would be much worse. We saw a drop of 13% in a single month in March. A 3% overall drop is not bad.”
He added that many organisations continue to interview candidates but remain reluctant to make final hiring decisions.
“Organisations aren’t putting recruitment on hold, but they’re not hiring anyone either. They’re actively interviewing… and then they say they just need a couple more weeks.”
Murphy believes businesses are preparing to return to normal hiring patterns but are waiting for greater economic certainty before committing to new roles.
UAE, Qatar and Kuwait record the biggest hiring declines
Hiring trends varied across GCC markets during the second quarter.
Qatar recorded the sharpest decline, with recruitment falling 6% as its energy-focused economy and shipping activity faced greater exposure to regional disruption.
The UAE posted a 4% decline as businesses delayed spending decisions and hiring approvals. Even so, employers continued recruiting for finance, compliance and delivery-focused roles.
Kuwait also saw hiring decline by 4%, while Bahrain recorded a smaller 2% drop, supported by its Unemployment Insurance Fund.
In contrast, Oman was the only GCC market to register growth. Hiring increased by 1% as its ports benefited from trade routes that bypass the Strait of Hormuz.
Investment finance, AI and cyber emerge as hiring bright spots
While overall recruitment slowed, several sectors continued to expand.
Investment finance led hiring growth with a 6% increase, followed by finance at 5%, data and AI at 4%, and cybersecurity at 2%.
Murphy attributed much of the growth to delayed hiring from the previous quarter rather than a broader market recovery.
“They just didn’t hire much in quarter one. I don’t think there’s any reflection of the market in that.”
Although hiring momentum weakened across the GCC, demand for specialised finance and technology talent continues to support recruitment in strategic business functions. Employers are expected to remain selective until market conditions become more predictable.
