UAE to See One of the World’s Strongest Hiring Surges in 2026

The UAE is on track to register one of the world’s strongest labour markets in the first quarter of 2026, according to ManpowerGroup’s latest Employment Outlook Survey. Employers in the country reported a Net Employment Outlook (NEO) of 46 per cent, placing the UAE among the top three global markets behind Brazil (54 per cent) and India (52 per cent), and well above the global average by 22 points.

The quarterly survey highlights broad-based hiring momentum across industries. More than half of UAE employers 56 per cent expect to increase staffing levels next quarter, while 10 per cent anticipate reductions and 33 per cent see no change. Large companies employing between 1,000 and 4,999 people expressed the strongest confidence with a 56 per cent outlook, marking a seven-point jump from the previous quarter. Small and medium-sized enterprises also remained upbeat, posting a positive 41 per cent outlook.

Among sectors, the automotive industry is positioned as the standout performer with an exceptional hiring outlook of 83 per cent. Finance and insurance follows at 73 per cent, while hospitality records a robust 65 per cent. On the other hand, trade and logistics as well as the information sector saw the sharpest drops since Q4 2025, declining 21 and 10 points respectively.

“The UAE labour market is entering a phase of accelerated transformation,” said Filip Rideau, Country Manager for ManpowerGroup Middle East. “Employers are expanding while adapting to rapid technological shifts and evolving workforce expectations. Agility, innovation and talent retention will be central in a highly competitive environment.”

Workforce shortages remain a significant challenge, with 75 per cent of employers reporting difficulties filling roles. The most acute gaps are in AI literacy, AI development, IT and data, engineering and sustainability skills. Company expansion is the leading hiring driver at 45 per cent, followed by diversification into new areas (35 per cent) and short-term project requirements (28 per cent). Expected workforce reductions are largely tied to market shifts and automation.

To address the talent crunch, employers are focusing heavily on upskilling and reskilling (35 per cent), expanding access to wider talent pools, outsourcing, and embracing automation. Flexible working arrangements and competitive compensation strategies are also being used to attract and retain skilled workers.

Across the broader Asia Pacific and Middle East region, the Q1 2026 NEO stands at 31 per cent. India leads with 52 per cent, followed by the UAE at 46 per cent. Regionally, information and finance and insurance sectors top the hiring outlook at 38 per cent, followed closely by tech and IT services (37 per cent) and professional, scientific and technical services (36 per cent).