Macroeconomic policy, localization and reducing unemployment: The crucial human resource issues for the UAE

Abstract

Purpose

The purpose of this paper is to analyze the unique unemployment anomaly in the UAE and formulate a long‐term, comprehensive strategy to combat effectively the high rates of unemployment among UAE citizens through a national policy.

Design/methodology/approach

The policy recommendations of this study constitute a package of interrelated policies designed carefully to provide a long‐term solution to a long‐term problem – a three‐stage plan of action termed the federal plan for the development of national human resources (FPDNHR). FPDNHR suggests more effective ways to reduce unemployment by stimulating economic growth, accumulation of capital, development of skills, increasing productivity, reforming the educational system and providing skills consistent with the demands of the labor market.

Findings

An effective solution for the UAE unemployment quandary is only possible after the three‐step strategy FPDNHR is applied completely.

Research limitations/implications

The FPDNHRO as suggested in this study is but a conceptual blueprint for a strategy that requires further research and fine‐tuning in order to develop an action plan. Priorities and sequencing must ensure that each element of the strategy is cost‐effective.

Practical implications

Unemployment is a macro‐dilemma and the strategic solution to the unemployment dilemma needs to be based and implemented on a national level through a federally mandated plan; the unemployment program will move in an orderly and strategically top‐down manner.

Originality/value

This paper fulfills an identified information/resources need and offers a long‐term practical solution to a unique macro‐dilemma.

Citation

Sherif, S. (2013), "Macroeconomic policy, localization and reducing unemployment: The crucial human resource issues for the UAE", Competitiveness Review, Vol. 23 No. 2, pp. 158-174. https://doi.org/10.1108/10595421311305352