The UAE's private sector workforce expanded by 2.5% during the first quarter of 2026, while the number of skilled workers increased by 1.5%, reflecting continued confidence in the country's labour market and business environment, according to new data released by the Ministry of Human Resources and Emiratisation (MoHRE).
The data published by the Labour Market Observatory also showed that the number of private sector companies operating in the UAE grew by 0.4% during the quarter, highlighting sustained business activity and the country's ability to attract both investment and talent.
MoHRE attributed the growth to the UAE's competitive business landscape, advanced infrastructure, and policies designed to support economic diversification and long-term development.
The ministry said the latest results demonstrate the private sector's growing contribution to the national economy and reinforce the UAE's position as a preferred destination for living, working, and investing.
The increase in skilled employment is particularly significant as the country continues to focus on building a knowledge-based economy. Under MoHRE's classification system, skilled workers are defined as employees holding qualifications above secondary school level, with accredited credentials and a minimum monthly salary of AED 4,000, excluding commissions.
According to the ministry, skilled occupations span five professional levels within the UAE's broader occupational framework, which covers 725 job categories across nine occupational levels. These range from senior executives and professionals to technicians, clerical staff, service workers, and specialised trades.
The classification system is based on the International Standard Classification of Occupations (ISCO) developed by the International Labour Organization (ILO) and is intended to support workforce planning, skills development, and labour market sustainability.
MoHRE said the growth reflects the impact of a modern legislative framework that has strengthened labour market governance while supporting the country's vision of creating a competitive economy powered by both Emirati talent and international expertise.
The ministry noted that its policies, developed in partnership with public and private sector stakeholders, are aimed at increasing Emiratisation rates, expanding the share of knowledge workers, and improving overall labour productivity.
The UAE's occupational classification framework also provides detailed job descriptions, qualification requirements, employment criteria, and career pathways, helping employers and workers better navigate labour market opportunities.
Officials said the framework was developed through extensive labour market studies and consultation with international advisory firms to ensure it remains aligned with both current and future workforce needs.
MoHRE categorises occupations into five skill levels, ranging from advanced professional and technical roles requiring higher education qualifications to vocational and limited-skill occupations. The system is designed to support effective human capital management while ensuring the labour market remains responsive to economic shifts and emerging industries.