Headline Unemployment Figures
The UAE’s overall unemployment rate stood at approximately 2.9% in 2024, one of the lowest in the MENA region. This aggregate figure reflects the structure of a labour market dominated by expatriate workers on employer-sponsored visas, which inherently suppresses measured unemployment.
Among UAE nationals, the unemployment rate was estimated at 11.6%, reflecting ongoing structural mismatches between private-sector demand and national workforce expectations regarding compensation and working conditions.
Labour Market Breakdown
| Indicator | Value (2024) | Change from 2022 |
|---|---|---|
| Total labour force | 7.14 million | +4.2% |
| Overall unemployment rate | 2.9% | -0.3 pp |
| National unemployment rate | 11.6% | -1.1 pp |
| Youth unemployment (15-24) | 7.8% | -0.9 pp |
| Female labour participation | 57.4% | +2.8 pp |
| Private sector employment | 5.82 million | +5.1% |
Emiratisation Programme Impact
The NAFIS programme and associated Emiratisation quotas have materially altered private-sector hiring patterns. Companies with 50 or more employees must achieve a 2% annual increase in Emirati headcount, with penalties for non-compliance.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Emiratis in private sector | 52,000 | 68,000 | 86,400 |
| Companies meeting quotas (%) | 62 | 71 | 78 |
| NAFIS salary top-ups disbursed (AED mn) | 1,240 | 1,870 | 2,310 |
Sectoral Employment Distribution
The services sector absorbs the majority of the UAE workforce, with construction, wholesale and retail trade, and domestic services remaining the largest employers of expatriate labour.
| Sector | Employment Share (%) | National Share (%) |
|---|---|---|
| Construction | 18.2 | 0.4 |
| Wholesale & Retail | 15.7 | 2.1 |
| Financial Services | 5.8 | 14.2 |
| Government & Defence | 8.3 | 62.1 |
| Technology | 4.6 | 6.8 |
| Hospitality & Tourism | 7.1 | 1.3 |
| Transport & Logistics | 8.4 | 3.6 |
Outlook
Labour market tightening is expected to continue through 2026 as non-oil GDP expansion generates sustained demand for skilled workers. The government’s focus on attracting high-skill talent through golden visas, green visas, and freelance permits is gradually shifting the composition of the expatriate workforce toward higher value-added roles. National unemployment is targeted to fall below 9% by 2031 under current Emiratisation trajectories.