UAE ranked first globally in key labour market indicators

Nation’s labour market achieves record rankings in global competitiveness index

Last updated:
Abdulla Rasheed, Editor - Abu Dhabi
3 MIN READ
Recent labour reforms have significantly enhanced working conditions, further contributing to the UAE’s strong upward momentum in international competitiveness rankings.
Recent labour reforms have significantly enhanced working conditions, further contributing to the UAE’s strong upward momentum in international competitiveness rankings.

Abu Dhabi: In a new international milestone, the UAE has claimed the top global ranking in 10 key labour market and employment indicators, according to the 2025 edition of the World Competitiveness Yearbook, published by the IMD World Competitiveness Center.

In addition to these first-place rankings, the UAE secured second place in four indicators, third in three, fourth in two, as well as fifth, sixth, and eighth in one indicator each.

UAE: A premier destination for living and working

These exceptional global results reaffirm the UAE’s standing as a premier destination for living, working, and investing, and underscore the country's commitment to sustainable economic growth. This latest achievement further enhances the nation’s reputation as a global model for development and competitiveness.

Despite strong competition from advanced economies, the UAE maintained its position at the top of several long-standing indicators and recorded significant improvements across multiple other benchmarks.

Top global rankings in labour market indicators

According to the 2025 World Competitiveness Yearbook, the UAE ranked first globally in the following indicators:

  1. Low labour disputes

  2. Low costs of terminating employment

  3. Workforce growth

  4. Availability of international experience

  5. Labour market competitiveness

  6. Working hours

  7. Employment rate

  8. Employment growth

  9. Availability of senior specialised managers

  10. Absence of bureaucracy

The UAE also achieved second place globally in:

  • Proportion of foreign labour force

  • Labour force participation rate

  • Availability of skilled foreign labour

  • Financial skills

Third place was secured in:

  • Availability of qualified engineers

  • Unemployment expectations

  • Availability of skilled labour

Fourth place was achieved in:

  • Labour regulations

  • Long-term unemployment rate

Additionally, the UAE ranked:

  • 5th in labour unit costs for the overall economy

  • 6th in youth unemployment

  • 8th in low brain drain

A magnet for global talent and expertise

The UAE has cemented its reputation as a hub for skilled talent and professional expertise across key economic sectors. This is driven by forward-thinking labour policies and the country’s ability to attract international talent with ease.

The growing diversity of the UAE’s workforce continues to support specialised talent development in a wide range of industries, while fostering productive, innovative, and future-ready work environments aligned with labour market needs and national strategic goals.

This global performance is a direct result of continued national efforts to modernise legislative frameworks, invest in world-class infrastructure, and cultivate an agile and competitive economic ecosystem that appeals to investors, entrepreneurs, and skilled professionals.

Recent labour reforms have significantly enhanced working conditions, further contributing to the UAE’s strong upward momentum in international competitiveness rankings.

Private sector at the heart of progress

Under the guidance of the country’s visionary leadership, the UAE has emerged as a global benchmark for efficiency, adaptability, and responsiveness to labour market shifts—earning it top positions in several labour-related competitiveness indicators.

These achievements reflect international recognition of the UAE’s dynamic policy-making and its proactive approach to global economic challenges.

Guided by national directives, the Ministry of Human Resources and Emiratisation (MoHRE) continues to strengthen the UAE’s labour market appeal, with a particular focus on the private sector as a strategic partner in building the most resilient, responsive, and agile economy in the region and beyond.

The Ministry remains committed to reinforcing the flexibility of the business environment and enhancing the UAE’s standing as one of the world’s leading destinations for global talent and innovation.

Abdulla Rasheed
Abdulla RasheedEditor - Abu Dhabi
Abdullah Rashid Al Hammadi  is an accomplished Emirati journalist with over 45 years of experience in both Arabic and English media. He currently serves as the Abu Dhabi Bureau Chief fo Gulf News. Al Hammadi began his career in 1980 with Al Ittihad newspaper, where he rose through the ranks to hold key editorial positions, including Head of International News, Director of the Research Center, and Acting Managing Editor. A founding member of the UAE Journalists Association and a former board member, he is also affiliated with the General Federation of Arab Journalists and the International Federation of Journalists. Al Hammadi studied Information Systems Technology at the University of Virginia and completed journalism training with Reuters in Cairo and London. During his time in Washington, D.C., he reported for Alittihad  and became a member of the National Press Club. From 2000 to 2008, he wrote the widely read Dababees column, known for its critical take on social issues. Throughout his career, Al Hammadi has conducted high-profile interviews with prominent leaders including UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, HH Sheikh Mohammed bin Rashid Al Maktoum, and key Arab figures such as the late Yasser Arafat and former presidents of Yemen and Egypt. He has reported on major historical events such as the Iran-Iraq war, the liberation of Kuwait, the fall of the Berlin Wall, and the establishment of the Palestinian Authority. His work continues to shape and influence journalism in the UAE and the wider Arab world.

Sign up for the Daily Briefing

Get the latest news and updates straight to your inbox

Up Next