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Decline in Indian Manpower for Middle East Jobs
Decline in Indian Manpower for Middle East Jobs
- By Srisivam Selvarajan
- June 30, 2025
Did you know that India has the largest youth population in the world? Out of 1.4 billion people, around 66% are under the age of 35, and over 808 million young people! Nearly 40% are in the 13-35 age range, according to the National Youth Policy.
Now imagine the impact of such a huge youth workforce in India combined with improved literacy - specifically in South Indian states, such as Tamil Nadu and Kerala - and a fast-growing Indian economy. We can see a clear trend in the Indian labour market changing. The IT, manufacturing, and service sectors in India are growing rapidly. This has increased demand for skilled and unskilled workers in India, resulting in better pay, improved working conditions, and more job opportunities in India.
As a result, we are seeing Indian labourers begin to turn away from jobs in the Middle East - especially in labour sectors where salaries have remained unchanged over the last 20 years.
So, what does this mean for employers in the Gulf? In this blog, we will examine why Indians are losing interest in Middle East jobs, the hiring challenges in Gulf countries, and some smart ways Gulf recruiters can still attract Indian talent in 2025 and beyond!
The Changing Mindset of Indian Labour
Indian workers, particularly the youth, are losing interest in jobs in the Middle East. What was once attractive, career opportunities in the Middle East for Indians, now loses its appeal with technology and ecommerce sites such as Amazon. Global access is now local. With the new higher literacy rates, Kerala at 96.2% and Tamil Nadu at 80.3%, youth are now choosing a career path in India instead of a low-paying labor job in the Gulf. Static salary trends for Indians in the Middle East have also slowed Indians migration to the Middle East, hindering employers in the Gulf who want to recruit Indian talent in 2025.
Rising Domestic Opportunities in India
India's rapid development and increasing wage expectations is leading many Indian workers to deem jobs abroad less attractive. In just 2022, white-collar jobs in India grew by 23% as a result of growth in thriving sectors and expanded local opportunity. With cities like Bengaluru and Hyderabad emerging as global tech centres, the Indian labour market continues to tighten. So hiring Indian workers in Gulf countries becomes more challenging.
What's going on in the way of challenges to recruiters in the Middle East?
Sector-wise job growth in 2022:
• Financial Services: +49%
• IT sector: +16%
• FMCG industry: +42%
Minimum wage in India 2024:
• Unskilled labour: ₹783/day
• Skilled labour: ₹1,035/day
Add to that 7% inflation and high cost of living, and you’ll see why there’s a decline in Indian migration to the Gulf. This shift creates real recruitment challenges in Middle East. Gulf CEOs and HR leaders must rethink how to attract Indian talent in 2025.
Stagnant Salaries in the Middle East: A Persistent Issue
Most Middle East employers, particularly those across the GCC countries, continue to offer very similar salaries for labour jobs in Gulf countries, which have little changed in the past 20 years. For example, unskilled construction workers in UAE or Saudi Arabia make anywhere from $200–$300 per month, which is not much higher than the $150–$250 they earned in the early 2000s. So, why haven't Gulf labour salaries increased?
Some of the main reasons for stagnant salaries in the Middle East are:
• An abundance of foreign labour: In many sectors of the Middle East economy there is too much reliance on foreign workers from countries like India, Pakistan, and Bangladesh, which is only lowering wage increases in Gulf countries.
• The oil sector costs:When you work in heavy cost-sensitive sectors like construction or hospitality in the Middle East to maximize profits you keep wages down.
• Nationalization programs:Examples of nationalisation programs that impact labour wages include programs like Saudization where companies must hire their locals so they have no incentive to improve salaries of foreign labour.
• No collective bargaining: With no labour unions most of these migrant workers have no collective leverage and cannot drive new pay structures leaving the workers open to outdated pay structures.
This salary mismatch will become even more difficult because of contrasting wage and minimum wage expectations between Middle Eastern salary trends and 2024 minimum wage in India making the environment less attractive to Indian workers in Gulf countries. Some Indian candidates now compare offers and find better career options in India (compensation, benefits and advancement)
Why Indian Workers Prefer Europe and Russia
Indian workers, our primary source of talent, are on the move. Why? Because Europe and Russia are paying $1,200-$2,000/month for skilled positions such as construction - which is way above the prevailing Gulf wage rates. Rajesh, a welder and skilled worker, made $250 a month in Qatar, he's now earning $1,400 in Poland.
Not only is pay a big factor, but Europe offers a greater work-life balance, better labour protections, and is more transparent in providing opportunities for Permanent Residency. Unfortunately, we have not seen any of these in the Middle East.
This is not just about workers, it's about future Middle East talent acquirisation and retaining talent. Are you prepared to compete?
Challenges for Middle East Employers to Attract Indian Talent
• Gulf salaries do not boast high cost compared to regular pay rise in India or Russian and Europe employment.
• The Indian talent is being scared off by labour rights and poor working conditions in Gulf countries.
• A significant cultural disconnect - the Indian working population abroad now prefers flexible, inclusive and progressive workplaces.
• Complex Gulf visa processes and job security issues create reluctance to apply.
• The Middle East job market needs to change and provide competitive jobs to Indian professionals to remain relevant.
How Middle East Employers Can Reclaim the Talent of Indian Workers
Let's be real - pulling Indian workers into the workplace is more difficult than it ever has been. Europe and Russia are offering more money and better conditions and Middle East employers need to consider how they will pivot.
What works:
• Pay fairly: Indian workers commonly know their worth. Offering $500 – $800 for unskilled work, and $1,000 – $1,500 for skilled labor with performance bonuses included is something they think about.
• Offer good benefits: Offer good benefits: Housing, healthcare, and schooling assistance for families to support migrant Indian workers goes a long way. Housing, healthcare, and schooling assistance for families to support migrant Indian workers goes a long way.
• Support growth: Upskilling and career tracks matter to the ambitious Indian professionals traveling abroad today.
• Recognize work-life balance: Indian workers would enjoy jobs in the Gulf if it meant shorter hours and allowances for the workers wellness.
• Respect the workers culture Showing an interest to recognize Indian festivals or respect food choices builds trust.
• Make the hiring process easy Showing the ability to fast-track hiring and with tech tools available for responsive and transparent hiring, demonstrates that you value your hires.
If the Gulf labour market can convene on these expectations, hiring quality Indian manpower will not be an issue.
The path ahead for Middle East employers
The Indian labour market has changed. Young educated workers are now increasingly optimistic about their prospects and, while there is still strong domestic growth, this did not translate into Indians flocking to Gulf jobs, they are not the first choice. To entice the Indian worker, and other similar workers, Middle East employers must fundamentally change their approach to offer competitive salaries, focus on employee health and well-being, provide career paths and job security. If these changes don't take place, Middle East employers minimally risk a diminishing access to a useful supply of Indian manpower at a time when global talent is scarce. The employers need to move quickly - before it's too late.
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