A recent Consumer Confidence Index survey conducted by Bayt.com , the Middle East’s number one job site, and YouGov, a research and consulting organisation, demonstrates that while end-of-year sentiments towards personal financial situations and national economy appear to be pessimistic, outlook for next year is brighter.
The Present Situation Respondents in Kuwait state that their (and their family’s) current financial situation is either the same (34%) or worse (32%) than last year, with only27% claiming to have had their finances improve in the same time period. The generally neutral/negative feeling is also directed towards the country’s economy, with a collective64% saying that the situation is the same (34%) or worse (30%) than it was12 months ago.
Business conditions are considered to be down;36% of respondents say that this is a bad time for business (and another36% claim it is a neutral time), which is perhaps reflective of the fact that36% believe that this is a bad time to purchase consumer durable goods – only14% say this is a good time to buy, with39% claiming it to be a neutral time.
This quarter is also considered to have been a bad time for employment:40% of respondents claim that there are ‘very few’ jobs available in Kuwait, with a further36% saying that there are ‘not many available’. In correlation with this,33% state that there are fewer employees working with them now than there were this time last year, with30% claiming that their businesses have expanded, and26% saying that the number of employees is still the same.
Meanwhile, an overwhelming74% of respondents claim that their salary has not kept up with the current cost of living.
“Sentiments are quite low this year, as it seems like we’re still riding on the tail end of the economic recession. However, going forward, expectations and optimism are high, particularly for those looking for employment,” said Amer Zureikat, VP Sales at Bayt.com. “At Bayt.com, employers and jobseekers alike can find the ideal solution to their employment needs, as we make it easier for people to find their ideal match through our comprehensive database.”
Expectations for2012
As mentioned by Zureikat, the outlook for2012 is positive, with50% of respondents believing that their financial position will change for the better in the coming year, and44% saying the same about the country’s economy. Business conditions are expected to improve according to57% of Kuwait respondents, and35% are positive that there will be more jobs available –23% believe that the number of jobs will remain the same, and24% believe there will be fewer jobs.
Pessimism continues when respondents were questioned about expected company growth in the coming three months:34% believe that there will be no change in the number of employees taken on by their company (21% say there will be positive growth;27% state the opposite). The statistics reflect a similar outlook in terms of keeping up with staff requirements–39% of respondents have neutral sentiments, with29% stating that their company will fail to match requirements.
The outlook for the economy is not much better, as inflation has left38% of Kuwait respondents with a negative outlook for the cost of living in the future, and31% believe that the cost of real estate will be negatively impacted, too.
“Despite the overall outlook being less than positive for the present, there are some warming sentiments for the year to come as people look forward to improved business conditions. Better business conditions should lead to more jobs and possibly enhanced compensations, which is always something to look forward to,” said Sundip Chahal, CEO, YouGov.
Career Satisfaction
Again, there is a tendency towards negative sentiment when it comes to job satisfaction. Only14% of respondents in Kuwait are satisfied with their job and career prospects, with just17% of them feeling happy with the potential for growth in their current organisation. Satisfaction with job security is considered to be slightly higher, with26% claiming that they are secure in their positions; only7% are content with their current compensation though. More than half of respondents are displeased (61%), and28% are neutral.
Purchasing Predictions in the Coming Year
The majority of Kuwait respondents are not looking to make any major purchases in2012. Of the34% who say that they are considering buying a vehicle,45% will buy new, and48% will opt to purchase a used vehicle. Only20% are looking to buy property in the coming12 months – of these,71% will buy new.
Laptops continue to be the most popular items that people are looking to buy in the next six months, with25% saying they will invest in one. The second-most popular consumer good in Kuwait is air conditioners (20%), followed by furniture (16%).
Data for the quarterly Bayt.com Consumer Confidence Index survey was collected online from November27 – December6,2011, with7,343 respondents aged over18 years, covering GCC Arab, North African, Levant, Western Expatriate and Asian nationalities. Countries who participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, Tunisia and Pakistan.