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UAE labour market sees record growth in five years as Emiratisation reaches historic highs: MoHRE

UAE labour market sees record growth in five years as Emiratisation reaches historic highs: MoHRE
27 Jan 2026 01:03

BATOOL GHAITH (ABU DHABI)

 

The UAE labour market has experienced record-breaking growth over the past five years. Among the key highlights is the historic surge in the number of Emiratis employed in the private sector, which increased by 377% between 2021 and 2025, according to the Ministry of Human Resources and Emiratisation (MoHRE).

With Emiratisation in full effect, the number of establishments employing UAE nationals also rose by a notable 320% since the launch of the Nafis programme in 2021 up to December 16, 2025, according to MoHRE’s report. By December 2025, about 170,000 citizens were working in the private sector — a massive leap from 37,500 in 2021.

These figures are among the achievements outlined in the five-year performance review of the UAE labour market, which MoHRE released in the latest edition of its Labour Market monthly e-magazine.

Data showed that, overall, the country’s workforce expanded by 101.76% in half a decade, with the number of skilled workers increasing 49.92% and company growth hitting 45.76%, according to the report.

In 2025 alone, the number of employees increased by 12.4% compared to 10.9% in 2024, while establishment growth reached 7.8% and the rise in skilled workforce stood at 6.3%, according to MoHRE’s Labour Market Observatory.

The skills and talent of women and youth also bolstered the workforce. Over the five-year period, women’s participation in the market increased by 101.92%. And based on the 2025 data, 45.8% of the total female workforce are skilled professionals and more than 17% are in leadership positions.

Meanwhile, the percentage of the youth workforce in the UAE labour market reached 54.9% in 2025, highlighting the country’s success in engaging young talent.
To further support the youth and give them a head start in their careers, MoHRE launched the National Practical Training Platform, which allows university students to register for practical training across the public and private sectors. It connects students with opportunities aligned with market needs and, at the same time, helps companies find qualified Emirati talent faster.

A Supportive Environment

In the UAE labour market, growth and success go beyond workforce numbers. They are also felt on the ground through accessible public services, faster procedures, and an integrated social protection system.

Ninety-nine percent of workers are covered by the Wage Protection System (WPS), with an equal portion registered under the Workers Protection Programme, MoHRE stated in its five-year performance report. More than 80% of the private sector workers have also obtained unemployment insurance.

Additionally, four savings funds were introduced to help private sector workers manage end-of-service benefits and grow their long-term savings, supporting financial stability across the workforce.

The ministry also reported that 98% of labour complaints were resolved amicably in 2025, underscoring a strong governance and dispute resolution system in the UAE.

As government services go smart with AI and automation, MoHRE has completed as many as 13 million transactions without human intervention in 2025. This reaffirms that the UAE is not only adopting AI, but also actively pioneering its integration across its services.

Reflecting its global competitiveness, the UAE’s labour market also earned top rankings in 2025 for employment growth, labour law efficiency, low termination costs, and strong leadership competencies, the MoHRE report said.

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