56% of companies planning to expand workforce

The UAE has emerged as the most optimistic country globally in terms of hiring expectations for the third quarter of 2025, according to the latest ManpowerGroup Employment Outlook Survey (MEOS).

With a Net Employment Outlook (NEO) of over 48 per cent, the UAE significantly outpaces the global average of over 24 per cent, demonstrating the continued resilience and vitality of its labour market as the region pushes forward with diversification and innovation.

Read-Inclusivity in the workplace: A strategic imperative for the UAE

The report, based on responses from more than 530 employers across the country, found that 56 per cent of UAE organisations plan to expand their workforce in Q3 2025, while just 8 per cent expect a reduction. The remaining employers either anticipate no change or are unsure. These figures place the UAE firmly at the top of the global hiring sentiment rankings, ahead of countries such as the Netherlands (over 30 per cent) and Ireland (over 29 per cent).

Key sectors powering UAE’s employment momentum

The sectors showing the strongest hiring confidence in Q3 include Transport, Logistics and Automotive, Consumer Goods and Services, and Energy and Utilities, all industries experiencing dynamic growth and transformation.

• Transport, logistics and automotive reports the highest global hiring outlook at over 64 per cent, exceeding the international average by 41 percentage points. This remarkable surge is fueled by ongoing infrastructure mega projects, smart mobility innovations, and increased demand for supply chain professionals.

• The consumer goods and services sector follows with a over 60 per cent hiring outlook, outperforming the global sector average by 27 points. This growth reflects an ongoing rebound in retail, FMCG, and tourism-related services, especially with seasonal peaks expected in the latter half of the year.

• Energy and utilities continues to perform strongly, posting an over 62 per cent hiring outlook, 43 points above the global sector average. The sector’s strength is driven by major investments in sustainable infrastructure and the UAE’s diversification of energy sources, aligning with the country’s long-term climate goals.

According to the survey, the main drivers of hiring in the UAE include:

• Company expansion (38 per cent), reflecting confidence in market conditions and strategic growth plans

• Technological advancements (32 per cent), as businesses accelerate digital transformation

• Emerging business areas (31 per cent), creating demand for new roles in innovation, AI, and green technologies

UAE’s labor market shows resilience and ambition

Filip Rideau, country manager at ManpowerGroup Middle East, emphasised the UAE’s unique position in the global employment landscape.

“With a Net Employment Outlook of over 48 per cent, the highest globally, the UAE labor market demonstrates not only resilience but a strong appetite for growth,” said Rideau. “Key sectors such as transport, consumer goods, and energy are driving this momentum, indicating robust demand for skilled talent across industries.”

The Europe, Middle East, and Africa (EMEA) region shows varied hiring confidence, with an average NEO of 19 per cent. The UAE’s over 48 per cent outlook places it well ahead of regional and global counterparts, further cementing its reputation as a talent hub and economic powerhouse.

Adapting to the rising cost of living

Amid growing concerns about the cost of living, especially in key areas such as housing and education, UAE employers are increasingly revisiting their compensation models.

Many companies now conduct annual salary reviews to better align with inflation trends and employee expectations. According to Vijay Gandhi, Regional Director at Korn Ferry, there is a noticeable shift toward tiered and adaptive benefits structures.

“Housing and transport allowances are widely offered across all job levels, while children’s education support is more commonly provided to managers and senior executives,” said Gandhi. “These benefits are often tailored based on an employee’s seniority and family needs, helping to ease financial strain and improve retention.”

However, Gandhi cautioned that salaries in several sectors have not fully kept pace with inflation, prompting a broader rethink of rewards structures.

To stay competitive, employers are exploring:

• Performance-linked bonuses

• Stock options or equity plans

• Lifestyle-related perks like relocation support and travel reimbursements

Beyond salary: Innovative benefits shaping the UAE talent market

As financial pressures mount, UAE companies are going beyond salary adjustments to craft holistic benefit packages designed to support employee well-being, work–life balance, and professional growth.

Some of the most in-demand innovations include:

• Flexible work arrangements: Hybrid and remote options are increasingly expected by candidates and offer employers greater reach and retention.

• Mental health and wellness initiatives: Companies are investing in counseling services, wellness stipends, and gym memberships to promote overall health.

• Childcare support: Subsidies and on-site childcare help working parents manage responsibilities more effectively.

• Professional development stipends: These allow employees to pursue certifications, attend workshops, and build skills aligned with future career goals.

By embracing a whole-person approach to talent management, UAE employers are positioning themselves to compete globally for top-tier professionals while fostering loyalty and engagement.

What UAE workers value most in 2025: Emerging trends

The workforce of 2025 is more discerning, more informed, and more aligned with long-term life goals than ever before. As such, UAE professionals are increasingly drawn to benefits that reflect these priorities.

The most valued employee benefits this year include:

• Flexible working hours and remote options, supporting diverse personal commitments and lifestyles

• Education and childcare allowances, providing financial relief for families

• Mental health and wellness programs, addressing burnout and psychological well-being

• Upskilling and training programs, ensuring career durability in an evolving tech-driven economy

These preferences point to a seismic shift in the employer-employee relationship—one where purpose, flexibility, and well-being sit alongside salary as top considerations.

Outlook: UAE positioned as global talent magnet

The Q3 2025 data from ManpowerGroup not only reflects a moment of optimism, but also signals a strategic transformation in the UAE labor market. As the country continues to invest in future-ready sectors, upgrade digital infrastructure, and refine its talent policies, it is increasingly seen as a destination of choice for ambitious professionals.

For employers, this is an opportunity to lead with vision and responsibility. For job seekers, it may just be the best time to make a career move to the UAE.