Today's Edition
SAMI ABDUL RAOUF (DUBAI)
Private sector establishments in the UAE witnessed a growth of 12.6% in their numbers in 2023 compared with 2022, according to data from the Ministry of Human Resources and Emiratisation (MoHRE). The figures indicated that this increase was accompanied by a growth of 11.43% in the number of the workforce during 2023 compared with 2022.
These data, reviewed by Aletihad, also revealed a growth in the number of skilled workforce by 8.9%. The private sector statistics for 2023 reflect the national efforts to carry out comprehensive development in the business sector in accordance with clear legal frameworks that meet the requirements of development for 50 years to come and keep pace with the UAE’s focus to develop priority sectors.
The new results stimulate the private sector’s ability to achieve sustainable growth and increase its share of the gross domestic product.
The Ministry’s data also indicated that the number of subscribers to the unemployment insurance system had exceeded 6.7 million since its implementation until November 2023. The unemployment insurance scheme includes workers in the public and private sectors.
It provides them with a low-cost job security umbrella that supports job and living stability, in a step that would enhance the competitiveness of the labour market by relying on innovative mechanisms, without burdening employers and entities.
The positive impact of the unemployment insurance scheme is that it attracts Emirati workforce and competencies with global skills, motivating them and providing them with the best means of care. The project is considered a driving force for the growth of the economic sectors in the country. Two categories of workers fall under the unemployment insurance scheme.
The first includes those with a basic salary of Dh16,000 or less. The value of the insured employee’s subscription within this category is Dh5 per month (Dh60 annually), and the maximum value of monthly compensation is Dh10,000. The second category includes those with a basic salary exceeding Dh16,000.
The subscription value for this category is Dh10 per month (Dh120 annually), and the maximum value of monthly compensation is Dh20,000. Compensation is due on the condition of taking part in the insurance scheme for at least 12 consecutive months. The insured loses the right to claim the compensation if the employee leaves the country or joins a new job.
The period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim.
The insurance scheme compensates the insured with a cash sum for a period not exceeding three months, provided that the employee does not resign or is dismissed for disciplinary reasons. The compensation received by the eligible employee is calculated at 60% of average basic salary in the last six months before being unemployed.
Employers, domestic workers, temporary contract workers, juveniles under the age of 18, and retirees who receive a pension and have joined a new job are excluded from the scheme.
The insurance scheme provides several channels for registration through the official website (www.iloe.ae), the Insurance Complex’s smart application (iloe), self-service devices (kiosk), business service centres, exchange centres (such as Al Ansari Exchange), and smartphone applications for banks or telecommunications company bills.
Labour market data over the past year reflect the growing confidence in the work environment in the UAE, and confirm its position as a capital of global talent, in light of the new legislative structure of the labour market. This has had a major impact on developing the Ministry’s systems and policies and supporting its endeavour, in cooperation with its partners in the government and private sectors, towards implementing its vision of creating a competitive labour market possible for the Emirati workforce.
