Foreign Labor and Recruitment in United Arab Emirates - Research Proposal Example

October 12, Foreign Labor and Recruitment in United Arab Emirates Contents Page 1) Introduction………………………………………………………… 2) Objectives of the study…………………………………………………… 3) Thesis Statement……………………………………………………… 4) Literature Review……………………………………………………… 5) Methodology……………………………………………………… 6) Discussion with results of the preliminary research…………………… 7) Thesis plan including time table……………………………………. 8) Significance of the research…………………………………………… Abstract The rate of foreign labor recruitment is higher in United Arab Emirates when compared to other countries. This trend has proved to be advantageous to both UAE and other countries from where UAE recruit labors. The recruitment of foreign labors ensures a flow of income from UAE to the foreign countries. The study is based on a mixed research method which includes both quantitative as well as qualitative techniques. The study focuses on the labor force of UAE which consist mainly of foreign labors. An analysis of the trend in the recruitment of foreign labors along with the cost of these labors, and basis of their recruitment is made in this study. The cost of labor is the income received by them for the services they render. The basis of recruitment is analyzed by the qualification on which the labors are recruited. Further the reason for this increasing trend and the economic impact of the foreign labor recruitment on the country is examined. The change that was witnessed in the foreign labor recruitment in UAE during the recent global financial crisis is analyzed. The study helps to get a clear picture of the effect of the recruitment of foreign labors on the economy of UAE. Thesis Statement: An analysis of the trend in foreign labor recruitment and its effect on the economy in United Arab Emirates. 1) Introduction: The economic system of United Arab Emirates (UAE) is a transitional economy that tries to diversify financial development from hydrocarbon-based to non-hydrocarbon-based. One of the main constraints for the period of the transition is the shortage of capable employees from local citizens, who possess adequate knowledge to main key positions at various levels in key industries. While there is ample supply of foreigners, and also at the same time expert and talent employees in domestic area is extremely hard to find. Drop out is a one of the key element that has lead to a decrease in the rate of the educated and skilled labors. This has led to a situation where the country is faced with the alternative need of recruiting educated and skilled labor from the foreign countries, which may have negative impact on the nation’s economy. It is estimated that more than 4 million foreign employees work in approximately 260,000 private enterprises besides government and semi government sections and other organizations in the UAE. The main aim of the study is to identify how drop out of school and income level has necessitated the recruitment of foreign labor and recruitment from local job markets in UAE. The recruitment of highly skilled foreign labor is necessary to improve the overall demographic development of the UAE. “Understanding the costs of labor is the first step towards understanding the structural imbalance of the labor force in light of the new strategic development plan for the UAE economy” (Awad 12). The significance of the cost of labor emerges from the fact that it is the major cost in the production procedure and its consequences on the ability of a state to struggle in the worldwide markets and to create a center of attention foreign direct investment are huge. The cost of employing those employees separated into three types such as recruitment and administrative cost, social cost and cost associated with the labor variable. A very detailed study has been conducted for the topic which performed an analysis in all dimensions for the topic. The objectives of the study is attained by the analysis conducted it answers the questions raised in the objectives. The study provides an in depth analysis of the upcoming trends in the areas of recruitment of foreign labor in UAE. 2) Objective of the Study: 1. To identify the level of recruitment of foreign labors in United Arab Emirates. 2. To examine the cost of foreign labor in United Arab Emirates 3. To discover the reasons behind the increasing trend of foreign labor recruitment. 4. To examine the basis on which the recruitment of foreign labor is made. 5. To evaluate the economic impacts of the deployment of foreign labor in the country. 6. To find out the changes in the recruitment of foreign labor in UAE during the recent global financial crisis. 3) Thesis Statement: Industries in UAE adopt more competitive recruitment process to select most suitable foreign labors than any other foreign country. The research proposal consist of Abstract, Introduction, Literature review, Methodology, Discussion with results of the preliminary research, Thesis plan including time table, Significance of the research and finally Bibliography of the proposal. 4) Literature Review: In the literature review, a critical evaluation of the topic will be done based on the existing studies and other records available related to the topic. The key concepts used in here are the foreign labour recruitment in UAE, related economic impact on the country and the changes in the recruitment during the financial crisis. The study will be done on the premise that the foreign labour recruitment and the outflow of income are related in the way that, the higher level of foreign labour recruitment is associated with the higher outflow of income. The level of recruitment of foreign labours is analysed using the government sources like publications, records etc. The economic impact is measured in terms of the income outflow which is collected using the published secondary sources as well as from the past researches related to the topic. To analyse the changes in the recruitment due to the financial crisis, the articles and study materials recently done is taken as a source. The study will also establish the correlation between the recruitment of talented and educated labourers from foreign countries with the increase in the development of business sector in the United Arab Emirates. The literature review has a key role in this research because the study is based on mixed method of research as well as secondary resources. For obtaining reliable information from primary sources is difficult for a topic of this nature. Therefore, the study will assimilate relevant information from sources like books, articles, government reports, corporate reports, magazines, news papers and previous research papers. The articles relating to the level of foreign labour recruitment like ‘Recruitment of labour migrants for the Middle East: The Sri Lankan case’ and articles on the effect of global crisis on the recruitment of foreign labours like ‘Impact of global economic imbalance on migrant workers and economies of the Gulf Cooperation Council’ will be used. 5) Methodology. Methodology plays a significant role in any of the research undertaken. The primary and secondary research will sketch out the helpful insights into the businesses. This has proved to be the successful techniques to learn the marketplace and can investigate the better ideas for successful running of the business. To find out the Foreign Labor and Recruitment in United Arab Emirates both primary and secondary research method is used. And also at the same time the choice of appropriate method for research is very important to identify and analysis the objective of the study. Research design is primarily framed to categorize and investigate different methods for conducting the research and it also occupies taking most appropriate judgment associated to the sources from which the information has to be gathered. Both quantitative and qualitative research methods have its own importance to conduct the research. Quantitative method helps to get a chance to build a relation between the variables but it won’t give a satisfactory explanation for these relations. But at the same time a qualitative study will enable to explain the fundamental factors for the establishment of those relations. So both these two method is necessary to obtain the most suitable information. The quantitative method is the structured investigating and examination of the quantitative information. The thought behind the quantitative technique is the employment of the arithmetic and numerical form and the examination of the hypothesis. Quantitative method used to collect information from the target audience is the questionnaire and interview method Qualitative method provide high chances to identify deep into the minds of respondents and can able to draw a rough picture of respondent’s needs and desires. This helps to understand respondent’s concerns and considerations, there are different reasons why Qualitative method also explains to know respondents mind, and draw a rough picture about respondent’s perceptions and expectations. Qualitative method helps to find the most accurate result through the direct contact with respondents to identify the foreign labor and recruitment in UAE But the same time data collection through the quantitative method provides only the secondary information related to the topic. The survey was conducted with same intention but the method was different. The sample size of the survey is 150. These 150 people were collected data by way of using 3 different research instruments. Questionnaires face to face interview and telephonic interview. The entire respondents returned the finished surveys, giving a reaction rate of 100%. It comes out from the outcome from the study of that the entire 150 respondents comprehended and properly answered the survey questions. With reference to the participants’ character, such as differing lifestyles, individual interests, inspiration and expectations, they will be understand in light of the findings and survey investigation. 6) Discussion with Results of the Preliminary Research: In this part, a discussion of the study conducted is given. The discussion part gives a clear sketch of the entire research. The relevance of the research can be identified from the rate of foreign labor recruitment and the resultant outflow of income from UAE. The recruitment of foreign labor is done to tackle the problem of labor shortage in the country and thereby to improve the state of economy. The importance of this research lies in the fact that even though the income of the country is increasing but the outflow of its income is greater due to recruitment of foreign labors. The trend of foreign labor recruitment started with the discovery of oil reserves in the country. Since the country lacked skilled labor to utilize the oil reserves they started to recruit labor from other countries. This trend continued when new businesses were set up and needed cheap labor. The cost of labor depended on their qualification. The labors recruited include both casual as well as professionals. The recruitment of casual labors is greater when compared to educated labor because casual labors from foreign countries were cheaper than the domestic labors. In the discussion part the results of the research done using qualitative and quantitative data is analyzed along with the secondary research. The increasing trend of foreign labor recruitment faced a set back during the recent financial crisis. The study has great relevance in the present situation of economic recession but also face many limitations. The various limitations faced by the research include time constraint, lack of primary data, reliability of the data, and the methods used for the research. 7) Thesis Plan Including Time Table: The time table for the accomplishment of this research is the time taken to complete the project. All the tasks are allocated in such a way that all the activities must be completed within the specified time limit. The activities are scheduled based on the intensity and complexity of the task. The set of activities that are required to achieve the objective of the plan is scheduled in a table. The activities are listed and the start and the completion time are also mentioned in the table. Timetable for the Work Start Time Finishing Time. CHAPTER ONE: INTRODUCTION. ------ ----------- CHAPTER TWO: LITERATURE REVIEW. ------ ------------ CHAPTER THREE: METHODOLOGY RESEARCH. ------ ------------ 1) PRIMARY DATA COLLECTION. 2) SECONDARY DATA COLLECTION. CHAPTER FOUR: ANALYSIS, DISCUSSION AND FINDINGS. ------- ------------ CHAPTER FIVE: RECOMMENDATIONS AND CONCLUSION. ------- ------------- 8) Significance of the Research: Significance of the study is known from the rate of outflow of income from United Arab Emirates. The study focuses on the rate of foreign labor recruitment and its effect on the economy of United Arab Emirates. The research will help to understand the relation between the increasing rate of foreign labor recruitment and the outflow of income. The hypothesis of the relation is that an increase in the foreign labor recruitment will lead to an increase in the outflow of the income from UAE. The research study could provide information on the level of foreign labor recruitment in the past years. The related changes in the economic conditions of the country will also be made clear. Further, the study will shed light on the behind the increasing trend of foreign labor recruitment. The benefit of the study will be for different segments of the society. An analysis of the changes witnessed by the foreign labor recruitment during the recent financial crisis will help in getting a clear picture about the effect of the crisis on the UAE economy. The reason behind the negative effect of financial turmoil on the economy of UAE is because of lack of effective economic policies. The research thus gives an answer to the inefficiency of the country in facing market fluctuations. The outflow of income which is a leakage to the economy makes the country unstable in the situations of market fluctuations. To the future researchers, this study can provide a basis for the information regarding the present situation of UAE economy. Further research is possible regarding the labors from the foreign countries and the working condition of these workers. The research can help the government to take steps to formulate new policies so as to tackle the unforeseen situations like financial crisis. Work Cited Awad, Mouawiya Al. The Cost of Foreign Labor in the United Arab Emirates. Institute for Social & Economic Research. 2010. Web. 17 Oct. Read More