More than half (55per cent) of UAE residents say either a close friend or a member of their family has lost job in the last three months, according to a study. 

This is a dramatic rise from the previous month’s benchmark where only one-third (36 per cent) reported the same, said YouGov’s second ‘Reality Check – UAE’, a monthly research report.

The research tracks how UAE consumers are reacting to the global credit crunch and gives industry specific recommendations, YouGov said. 

The brunt of the job losses were felt in the real estate/construction and banking/finance sectors, as they were last month.

The study, which can be purchased monthly or quarterly in UAE and Saudi, gives relevant insight into how customer behaviour is shifting.  It has been designed to help brands stay relevant and plan through tougher times, said YouGov.

Despite the sharp increase in the amount of people UAE residents know who have lost their jobs (an increase of 19 per cent), nervousness about job security has only increased 4 per cent.  Asd many as 54 per cent of those interviewed are nervous about job security, this compares to 50 per cent from last month’s wave of research.

“The next few months are going to be difficult for most businesses.  What we are trying to provide here is a genuine perspective on how people are behaving based on real figures. It is important businesses use this kind of information to help plan, using innovation and strong leadership, to steer through tough times. All companies can play their part in re-instilling confidence in the economy. Although  nervousness about job security has not increased that dramatically the level is still high and this figure will need to come down if consumer spending is to resume to previous levels”, says Nassim Ghrayeb, CEO of YouGov.

This month residents are settling into a more frugal way of living, with 74 per cent of respondents indicating they expect their salary to not increase as much this year compared to 2008. This is a marked rise from the 67 per cent polled in December. 

It highlights the belt-tightening behaviour observed across the board in decreased and downsized spending, avoidance of malls, and delayed holidays.

The shock of the current economic crisis on the lifestyles of UAE consumers has also begun to shift the perspectives of many residents. 46 per cent indicated that the current economic climate in the UAE is making them consider relocating to another country – a hike from 38 per cent in December.

As many as 779 UAE residents responded to the survey between January 20 and 29, 2009. – TradeArabia News Service