UAE labour market sees 8.9% workforce growth by Q3 2025

UAE labour market sees robust growth, driven by private sector initiatives

Last updated:
Abdulla Rasheed, Editor - Abu Dhabi
2 MIN READ
Legislative reforms bolster UAE's labour market growth by Q3 2025
Legislative reforms bolster UAE's labour market growth by Q3 2025

The UAE labour market continues to expand, with the Ministry of Human Resources and Emiratisation (MOHRE) reporting an 8.9% growth in workforce size and a 6.6% rise in the number of operating establishments by the end of the third quarter of 2025.

The figures underscore the UAE’s position as a global hub for talent, investment, and sustainable economic growth.

Sector-wise growth

Wholesale and retail trade leads in the number of active establishments, accounting for 30.15%, followed by construction at 17.13%.

Administrative service activities comprise 12.17%, manufacturing 8.8%, and professional, scientific, and technical activities 5.85%.

Accommodation and food services account for 5.82%, with transportation and storage at 4.38%, information and communications at 3.09%, and real estate activities at 2.34%. The remaining 5.1% is distributed across other sectors.

Private sector as a growth driver

MOHRE highlighted that private sector participation is pivotal for national economic competitiveness. Policies and initiatives fostering public-private partnerships have enhanced labor market attractiveness, creating a flexible and business-friendly environment.

The growth in registered workers across diverse private sector activities reflects strong demand for talent from multiple nationalities and professional backgrounds.

Labour protection and wage systems

The Wage Protection System now covers 98.8% of private sector employees, ensuring timely payment of wages and safeguarding workers’ rights. Employers are required to pay wages within 15 days of the due date, with administrative measures in place for violations.

These protections have strengthened balanced labor relations and reinforced confidence in the UAE’s work environment.

Legislative reforms driving confidence

The new labour market legislative framework has further boosted the UAE’s global competitiveness by empowering Emirati talent while attracting international professionals.

Coordination between federal and local authorities, along with financial and administrative support packages, has helped sustain confidence in the UAE as a destination for skilled labor, entrepreneurs, and investors.

Outlook

The growth in establishments and workforce demonstrates the continued strength and diversity of the UAE labour market. Policies ensuring worker protection, combined with incentives for private sector expansion, position the UAE as a dynamic and globally competitive hub for talent and investment.

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