UAE workforce jumps 12.4% in 2025 as new firms surge, MoHRE says

The Ministry of Human Resources and Emiratisation (MoHRE) announced that the UAE workforce recorded a growth rate of 12.4% in 2025, marking an increase compared to 10.9% in 2024. The Ministry also reported that the private-sector labor market saw a 7.8% growth in the number of companies in 2025, underscoring the strength of the country’s investment sector and the exceptional attractiveness of the UAE labor market, which outperforms global averages and continues to drive growth.

The UAE’s extensive advantages and capabilities—supported by facilitative policies and robust infrastructure—have contributed to attracting both local and global talent to the national labor market, while also enabling the entry of new companies, activities, and fields of work.

Data from the Labor Market Observatory, published in the latest issue of Labor Market magazine and on MoHRE’s official website, showed that the young workforce indicator remained stable while recording growth, with young workers accounting for 54.9% in 2025. This indicator measures the proportion of workers aged 18 to 35 out of the total workforce in the UAE labor market.

The data further revealed that women in leadership positions account for 17.4%, occupying roles as legislators, managers, and business executives, while skilled female workers represent 45.8% of the total female workforce.

Additionally, 36% of private-sector establishments contributed to the employment of women.

These 2025 results reflect national efforts to achieve comprehensive development in the business sector within clear legal frameworks that meet the requirements of development during the UAE’s second fifty years, while aligning with the country’s direction toward developing priority sectors that support the economy of the future.

The new indicators enhance the private sector’s capacity to achieve sustainable growth and increase its contribution to GDP, reaffirming the UAE’s position as an ideal destination for living, working, and investment, and for supporting sustainable economic growth by attracting and retaining qualified talents and competencies from around the world.

Labor market indicators over the past year reflect growing confidence in the UAE’s work environment and confirm its status as a global capital for talent, supported by the new labor market legislative framework. This framework has had a significant impact on developing the Ministry’s systems and policies, and on supporting its efforts—together with government and private-sector partners—to realize its vision of creating a competitive labor market that empowers Emirati talent and attracts global expertise.

According to MoHRE’s classification, skilled labor occupies five professional levels out of a total of nine job levels covering all private-sector occupations in the UAE, in line with the current occupational classification for private-sector labor.

Labor is classified as skilled if the individual holds a qualification higher than a high school certificate (or its equivalent), with the qualification duly attested by the relevant authorities according to applicable regulations in the country, and if the monthly wage is not less than AED 4,000 as a contractual salary (excluding commissions).

MoHRE classifies labor according to nine skill levels based on the International Standard Classification of Occupations (ISCO) issued by the International Labour Organization (ILO). These levels are as follows:

MoHRE applies the Emirati Occupational Classification for private-sector jobs, which includes 725 types of occupations, classified across nine professional levels and distributed into five skill levels. This classification reflects the Ministry’s commitment to achieving its strategic objectives and the Government of the Future vision, through optimal human resources management and skills development.

The classification supports the Ministry’s plans, programs, and policies aimed at creating a labor market that empowers citizens and attracts talent, contributing to the achievement of the UAE Vision’s national agenda targets by increasing Emiratisation in the private sector, raising the proportion of knowledge workers, and enhancing market productivity. It also defines job descriptions, required qualifications, employment requirements, and career paths for each occupation.

This classification is based on an in-depth study of the current labor market and future outlook, conducted in cooperation with relevant partners and leading international consultancy firms. It meets present and future labor market needs in alignment with international occupational classifications.

MoHRE has distributed occupations across five skill levels:

MoHRE revealed significant growth across various components of the UAE labor market over a five-year period (2021–2025). Company growth reached 45.76%, workforce growth 101.76%, and skilled workforce growth 49.92%. Female participation in the labor market increased by 101.92%.

As of 16 December, the total number of Emirati men and women employed in the private sector reached 171,000, representing a growth rate of 377%. The number of establishments employing Emiratis since the launch of the Nafis program increased by 320%, while 98% of labor complaintswere resolved amicably by the Ministry.

MoHRE affirmed that the UAE labor market consolidated its global standing in 2025 as one of the world’s most competitive, flexible, and dynamic labor markets, driven by an integrated legislative framework and qualitative reforms implemented in phases since 2021. These reforms paved the way for a competitive labor market that empowers citizens and attracts talent.

In its latest report published in Labor Market magazine, the Ministry stated that the legislative environment has resulted in a comprehensive system—the first of its kind in the region—that ensures quality of life and well-being for workers while protecting their rights in balance with employers’ rights, thereby supporting labor market competitiveness and sustainability.

The Ministry noted that 99% of workers are covered by the Wage Protection System, the same percentage registered under the Workers’ Rights Insurance Scheme. Meanwhile, 83% of private-sector workers are covered by unemployment insurance. Four savings funds have been approved to support private-sector workers and grow their savings. In addition, a health insurance package for private-sector workers and domestic helpers has been launched, starting from AED 320.

Guidance and advisory services provided by the Ministry in 17 languages benefited nine million workers, while 99% of establishments complied with the Heat Stress Protection Policy, which the Ministry has implemented continuously for 21 years.

MoHRE announced on its official website that, in cooperation with partners, it has reshaped the operations and services of the UAE labor market by leveraging artificial intelligence outputs. The Ministry affirmed its commitment to continue strengthening achievements with confidence, aiming to enhance customer happiness and contribute to the nation’s advancement in line with the directives and aspirations of the wise leadership.

The Ministry stated that artificial intelligence is a central pillar of the UAE’s leadership and future journey, particularly in light of the UAE Strategy, which aims to achieve 100% reliance on artificial intelligence in services and data analysis by 2031. This approach seeks to elevate government performance, accelerate delivery, and create innovative work environments, positioning the UAE Government as the world’s leading adopter of AI across vital sectors.

Within this strategic direction, the Ministry has successfully adopted an innovative model to integrate AI across its systems, operations, services, and organizational structure, under a comprehensive vision to enhance the efficiency, competitiveness, and flexibility of the labor market and ease of doing business. This supports efforts to eliminate bureaucracy, enhance customer experience, contribute to national leadership and competitiveness in government services, and reinforce the UAE’s position at the forefront of the global digital economy.

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The UAE experienced a surge in workforce numbers and newly established companies, driven by labour protection initiatives and increased mobility in the private sector.