UAE set for one of the world’s strongest hiring surges in 2026

The UAE is poised to record one of the strongest labour markets globally in the first quarter of 2026.

According to ManpowerGroup’s latest Employment Outlook Survey, employers are reporting a Net Employment Outlook (NEO) of 46 per cent. The figure places the UAE among the top three markets worldwide, trailing Brazil (54 per cent) and India (52 per cent) and sits 22 points above the global average.

Record hiring momentum in UAE

The quarterly survey shows broad-based hiring momentum, 56 per cent expect to add staff next quarter, 10 per cent anticipate cuts and 33 per cent foresee no change.

Large companies with employees between 1,000 and 4,999 people reported the strongest sentiment with a 56 per cent outlook, up seven points from the previous quarter. SMEs remained positive posting a 41 per cent outlook.

The automotive sector leads with an exceptional hiring outlook of 83 per cent followed by finance and insurance at 73 per cent and hospitality at 65 per cent. Trade and logistics and the information sector showed the sharpest declines since Q4 2025 dropping 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 and skills

Seventy-five per cent of UAE employers say they face difficulty filling roles driven by shortages in AI literacy, AI development, IT and data, engineering and sustainability expertise.

Company expansion is the main hiring driver at 45 per cent, followed by branching into new areas (35 per cent) and short-term project needs (28 per cent). Automation and market changes are the key factors behind expected workforce reductions.

To navigate the talent crunch, employers are prioritising upskilling and reskilling (35 per cent), expanding talent pools, outsourcing and leveraging automation. Flexible work models and competitive pay packages are also being deployed to attract skilled candidates.

“The UAE’s hiring outlook reflects a market that is ambitious, adaptive and increasingly shaped by innovation-led roles,” Rideau said. “Employers are leaning on upskilling and flexibility to overcome talent shortages.”

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