UAE private sector workforce grows 2.5 per cent in Q1 2026 as skilled jobs and companies increase

Abu Dhabi: The Ministry of Human Resources and Emiratization (MoHRE) announced that 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% over the same period.

According to data released by the Labour Market Observatory, the number of companies operating in the private sector grew by 0.4% during the first quarter of 2026, underscoring the strength of the UAE’s investment environment and the labour market’s ability to attract talent at rates that exceed global averages while sustaining growth.

The UAE’s competitive advantages, advanced infrastructure, and business-friendly environment have played a significant role in attracting both local and international talent to the labour market, while also encouraging the establishment of new companies, business activities, and employment opportunities.

These first-quarter 2026 results reflect the country’s ongoing efforts to achieve comprehensive development in the business sector through a clear legal framework that supports national development goals for the next fifty years and aligns with the UAE’s strategic vision to foster priority sectors that drive the economy of the future.

The latest results highlight the private sector’s capacity to achieve sustainable growth and increase its contribution to the national GDP. They also reaffirm the UAE’s position as a preferred destination for living, working, and investing, while supporting sustainable economic growth through the attraction and retention of qualified talent from around the world.

Labour market indicators over the past year reflect growing confidence in the UAE’s employment environment and further strengthen its status as a global hub for talent.

This achievement has been made possible through the implementation of a modern legislative framework for the labour market, which has significantly contributed to the development of the Ministry’s systems and policies. It has also supported its efforts, in collaboration with public and private sector partners, to realise its vision of creating a competitive labour market that empowers Emirati talent while attracting global expertise.

According to MoHRE’s classification system, skilled workers occupy five professional levels out of a total of nine occupational levels that encompass all private sector jobs in the UAE under the currently adopted occupational classification framework.

Workers are classified as skilled if they hold a qualification higher than a high school certificate (or its equivalent), provided that the qualification is duly accredited by the relevant authorities in accordance with applicable regulations in the UAE. In addition, the employee’s contractual monthly salary must not be less than AED 4,000, excluding commissions.

The Ministry classifies workers according to nine skill levels based on the International Standard Classification of Occupations (ISCO) issued by the International Labour Organization (ILO). These levels are:

      1.    Legislators, senior officials, and business managers.

      2.    Professionals in scientific, technical, and humanities disciplines.

      3.    Technicians and associate professionals in scientific, technical, and humanities fields.

      4.    Clerical occupations.

      5.    Service and sales occupations.

      6.    Skilled agricultural, fisheries, and livestock workers.

      7.    Craft and related trades workers, including construction and extraction trades.

      8.    Plant and machine operators and assemblers.

      9.    Elementary occupations.

MoHRE applies the UAE Occupational Classification System for private sector professions, which includes 725 occupational categories classified into nine occupational levels and grouped across five skill levels.

The classification forms part of the Ministry’s commitment to achieving its strategic objectives and supporting the Government of the Future vision through effective human capital management and skills development.

The classification framework supports the Ministry’s plans, programmes, and policies aimed at creating a labour market that empowers UAE nationals while attracting highly skilled professionals. It also contributes to achieving the objectives of the UAE National Agenda by increasing Emiratisation rates in the private sector, expanding the proportion of knowledge workers, and enhancing overall labour market productivity.

The classification provides detailed job descriptions for each occupation, including qualification requirements, employment criteria, and career pathways for workers.

Present and Future of the UAE Labour Market

The classification system is based on comprehensive studies of the current labour market and future workforce requirements, developed in collaboration with relevant stakeholders and leading international consultancy firms specialising in labour market analysis.

The framework is designed to meet both current and future labour market needs while remaining aligned with international occupational classification standards.

      ●     Level One: Professional occupations requiring advanced academic expertise and a university degree.

      ●     Level Two: Technical occupations requiring intellectual, practical, and supervisory skills, generally supported by a diploma-level qualification.

      ●     Level Three: Vocational occupations requiring practical skills and secondary-school-level qualifications.

      ●     Level Four: Occupations requiring practical and vocational competencies to perform job-related tasks.

      ●     Level Five: Limited-skill occupations.

This classification framework supports workforce planning, skills development, and labour market sustainability, ensuring that the UAE remains competitive in attracting talent and fostering economic growth in line with its long-term development vision.