The UAE’s labour market expanded in the first quarter of 2026, with the Ministry of Human Resources and Emiratisation 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. The figures reinforce indicators of economic resilience and the continued expansion of the UAE’s business environment.
The data was released as part of the ministry’s ongoing Labour Market Observatory reporting, which tracks workforce trends and sectoral distribution across the country’s private sector.
Data from the Labour Market Observatory showed significant variation across economic sectors. Wholesale and retail trade maintained its position as the largest segment, accounting for 30.22 per cent of all establishments operating in the market.
Construction ranked second with a 17.44 per cent share, followed by administrative and support services at 11.86 per cent and manufacturing at 8.7 per cent. The construction and manufacturing figures reflect continued momentum in infrastructure-related industries, with major development projects across the country sustaining demand for labour in these 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 remaining sectors collectively making up 5.13 per cent of the market. Transport and storage recorded a 4.41 per cent share. Information and communications reached 2.99 per cent. Real estate activities represented the smallest proportion at 2.45 per cent.
The spread across sectors points to continued diversification in the UAE economy, with no single industry dominating beyond trade. The range of segments showing positive establishment figures suggests growth is not concentrated in one area but distributed across the broader market.
The ministry attributed the continued upward trend to a combination of economic stability, flexible labour regulations, and the steady expansion of major development projects. These projects continue to generate demand across trade, construction, services and technology sectors.
MoHRE said ongoing reforms to labour and residency systems have played a role in sustaining growth. Business-friendly legislation, advanced infrastructure, safety standards and quality of life were cited as factors that have strengthened the UAE’s standing as a destination for investment, employment and business registration.
The Q1 2026 figures come after a strong 2025, in which both workforce numbers and registered establishments posted significant year-on-year gains. The 12.4 per cent annual workforce growth recorded last year marked one of the stronger expansion periods for the UAE labour market in recent years. The 7.8 per cent rise in establishments over the same period indicates that business formation kept pace with headcount growth, rather than existing firms simply absorbing more workers.
