UAE workforce grows 2.5% in first quarter of 2026
The workforce recorded annual growth of 12.4% during 2025
Dubai: The UAE’s labour market continued its upward trajectory in the first quarter of 2026, with the Ministry of Human Resources and Emiratisation (MoHRE) reporting a 2.5 per cent increase in workforce growth alongside a rise in the number of registered establishments.
According to ministry statistics, the workforce recorded annual growth of 12.4 per cent during 2025, while the number of establishments increased by 7.8 per cent over the same period, reinforcing indicators of economic resilience and the continued expansion of the UAE’s business environment.
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Data released by the Labour Market Observatory showed significant variation in the distribution of establishments across economic sectors, with wholesale and retail trade maintaining its position as the largest segment, accounting for 30.22 per cent of all establishments operating in the market.
The construction sector ranked second with a 17.44 per cent share, followed by administrative and support services at 11.86 per cent, while manufacturing activities accounted for 8.7 per cent, reflecting continued momentum in infrastructure-related industries and service sectors.
Accommodation and food services represented 5.88 per cent of establishments, while professional, scientific and technical activities accounted for 5.75 per cent. Other service activities stood at 5.17 per cent, with the remaining sectors collectively making up 5.13 per cent of the market.
Transport and storage activities recorded a 4.41 per cent share, while information and communications reached 2.99 per cent. Real estate activities represented the smallest proportion at 2.45 per cent.
The figures underline the continued diversification of the UAE economy and provide a clearer picture of the sectors attracting the highest concentration of businesses and investment opportunities.
The ministry’s data also highlighted the continued attractiveness of the UAE labour market, driven by economic stability, flexible labour regulations and the expansion of major development projects that continue to generate demand across trade, construction, services and technology sectors.
MoHRE said ongoing reforms to labour and residency systems, combined with business-friendly legislation, advanced infrastructure, safety standards and quality of life, have strengthened the UAE’s position as one of the world’s leading destinations for living, working and investment.
