UAE workforce grows 12.4% in 2025, strengthening nation’s status as global talent hub

The UAE’s labor market recorded robust growth in 2025, with the workforce expanding by 12.4% compared to 10.9% in 2024, according to the Ministry of Human Resources and Emiratisation (MoHRE). The private sector also saw a 7.8% increase in the number of companies, reflecting the continued strength of the UAE’s investment climate and the global appeal of its labor market.

MoHRE highlighted that the country’s policies, infrastructure, and business environment have attracted both local and international talent, enabling the entry of new companies and activities across a range of sectors.

Data from MoHRE’s Labor Market Observatory showed that young workers aged 18 to 35 comprised 54.9% of the workforce in 2025, underscoring the UAE’s dynamic, youthful labor base. Female participation in the workforce continues to rise, with women occupying 17.4% of leadership roles and 45.8% of skilled positions. Notably, 36% of private-sector establishments contributed to hiring women during the year.

“These results reflect national efforts to achieve comprehensive business development within a clear legal framework, aligned with the UAE’s vision for its second fifty years and its focus on priority sectors that support a future-ready economy,” MoHRE said.

MoHRE classifies private-sector jobs across nine professional levels and five skill levels, following international labor standards. Skilled labor is defined as individuals holding qualifications above high school, with monthly wages of at least AED 4,000. The classification system covers roles ranging from legislators, senior officials, and managers to service and sales occupations, skilled trades, and elementary roles.

The Ministry emphasized that its occupational classification underpins efforts to boost Emiratisation, develop human capital, and enhance private-sector productivity.

Between 2021 and 2025, the UAE achieved significant labor market milestones: workforce growth reached 101.76%, company growth 45.76%, skilled workforce expansion 49.92%, and female labor participation rose by 101.92%. The number of Emiratis employed in the private sector surged 377% to 171,000, while establishments hiring Emiratis increased by 320% since the launch of the Nafis program.

MoHRE underscored the UAE’s comprehensive legislative and protection framework, with 99% of workers covered under the Wage Protection System and Workers’ Rights Insurance Scheme. Unemployment insurance covers 83% of private-sector employees, and new savings funds and health insurance packages have been introduced to enhance worker welfare.

In a strategic push toward digital innovation, MoHRE has integrated artificial intelligence across labour market services, aiming for full AI reliance in services and data analysis by 2031. This move is part of the UAE Strategy to accelerate government efficiency, reduce bureaucracy, and create innovative work environments.

The latest figures affirm the UAE’s status as a competitive, flexible, and dynamic labour market. By attracting global talent, empowering Emirati workers, and fostering inclusive growth, the UAE continues to position itself as a leading destination for living, working, and investment.