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UAE businesses are heading into the final quarter of 2025 with strong hiring intent, according to the latest edition of the ManpowerGroup Employment Outlook Survey. The quarterly survey, which is widely used as a global bellwether of labor market trends, captures the employment expectations of 525 UAE-based employers across sectors.
The headline figure: a Net Employment Outlook of 45 per cent, a clear indication that many organisations in the UAE are planning to increase headcount, even in a climate shaped by economic uncertainty, technological transformation, and evolving workforce needs.
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This figure represents a three per cent dip compared to the previous quarter, but it remains significantly positive, underscoring resilient business confidence. As companies in the UAE adapt to shifting market dynamics, digital innovation, and talent demands, they are prioritising recruitment for both immediate operational needs and long-term capability building.
The Q4 2025 outlook reflects an employment market that is growing, but with discipline. Employers are expanding strategically, investing in new roles, and responding to skill shifts, all while balancing automation, restructuring pressures, and regional economic conditions.
Company expansion remains the top driver of job growth
Of the employers planning to hire in the fourth quarter of 2025, 46 per cent say that their company is expanding in size, which remains the top reason for job creation, consistent with the previous quarter.
Beyond overall business growth, other reasons for staffing increases include:
- 34 per cent are adding staff due to new ventures and business initiatives.
- 32 per cent are hiring to acquire new or updated skills, in order to remain competitive in a changing market.
- 29 per cent report that diversity and inclusion efforts are driving the creation of new roles.
- 27 per cent are responding to evolving service needs and customer demands.
- 24 per cent cite specific projects, and another 24 per cent point to technological advancements as reasons for adding talent.
- 12 per cent are backfilling roles that were opened before the last quarter.
- 11 per cent are replacing staff who left during the last quarter.
No respondents cited “other reasons,” suggesting that hiring remains tied to concrete, strategic business developments.
Skill redundancies and automation drive headcount reductions
While a majority of employers are planning to hire, some are also preparing for reductions in staffing. Among these companies, the most significant challenges are linked to changing skill requirements and automation:
- 30 per cent of employers say changing skill needs have made certain roles redundant.
- 29 per cent attribute reductions to automation and process improvements that are consolidating responsibilities.
- 27 per cent cite restructuring or downsising initiatives.
- 25 per cent are adjusting headcount to match current market demand.
- 21 per cent say that project-based roles have come to an end.
- 18 per cent note that market shifts are reducing demand for their services or products.
- 18 per cent also mention broader economic challenges impacting workforce needs.
- 14 per cent report voluntary departures where backfilling is not planned.
- 5 per cent cite other reasons.
This data reflects a clear shift towards leaner, more adaptive organisational models, where businesses are re-evaluating roles based on technological relevance and cost efficiency.
Stability as a strategic choice
For many employers, maintaining current staffing levels is a deliberate and strategic decision. Among those not planning any change to headcount in Q4 2025:
- 44 per cent say their current workforce is sufficient to meet operational goals.
- 29 per cent have made their operations more efficient, removing the need for further changes.
- 28 per cent are focused on retaining existing staff, signaling a shift toward employee development and engagement.
- 25 per cent do not expect major changes in the industry that would require staffing changes.
- 23 per cent say their current teams already meet legal and policy obligations.
- 22 per cent are taking a wait-and-see approach, watching how the economy develops before adjusting hiring plans.
- 18 per cent cite financial limitations that restrict expansion.
- 16 per cent are delaying new hires or lack active projects that would drive hiring.
No respondents selected “Other,” reinforcing that headcount decisions are being made based on clear internal strategy and external market visibility.
Sector-level outlook: Consumer, real estate and logistics lead hiring intent
The employment outlook varies across sectors, with the most aggressive hiring plans concentrated in consumer-facing and capital-intensive industries:
- Consumer goods and services and financials and real estate lead with a 65 per cent outlook.
- Transport, logistics and automotive follows with 61 per cent.
- Information technology stands at 57 per cent, showing strong ongoing demand for tech talent.
- Energy and utilities registers a 56 per cent hiring outlook.
- Communications services posts 53 per cent.
- Industrials and materials show 49 per cent, while the “Other” category (including government, NGOs, education, agriculture, and others) is at 48 per cent.
- Healthcare and life sciences has the lowest outlook at 47 per cent.
This distribution suggests that hiring strength is tied to consumer demand, infrastructure investment, and digital acceleration, while more traditional or regulated sectors are hiring at a more moderate pace.
Top hiring challenges: Volume, skills, and AI tools
Even as hiring continues, employers face significant talent acquisition challenges, particularly in recruitment speed and candidate quality. According to the survey:
- 42 per cent report difficulties in managing high volumes of applications.
- 40 per cent struggle to attract qualified candidates.
- 32 per cent say filling complex technical roles is a key issue.
- 30 per cent are focused on improving candidate experience, especially in communication and feedback.
- 29 per cent highlight challenges caused by candidate usage of AI tools during applications.
- 27 per cent are themselves learning to use new AI recruiting technologies.
- 26 per cent want to reduce time-to-hire to avoid losing candidates to competitors.
- 21 per cent cite limited resources as a barrier to effective hiring.
- Only 4 per cent say they are facing no hiring challenges at all.
Nonetheless, employer sentiment about their recruitment systems remains largely positive:
- 33 per cent rate their hiring process as excellent,
- 47 per cent as good,
- 17 per cent as fair,
- 2 per cent as poor,
- and 1 per cent as very poor.
That means a full 80 per cent believe their systems are effective in selecting the right people for the right roles.
Retention strategies: Recognition and work-life balance matter most
As employers in the UAE focus on retaining top talent, they are prioritising employee-centric initiatives. The most effective strategies identified include:
- 42 per cent rank employee recognition as their top retention tool.
- 39 per cent focus on work-life balance and managing workload.
- 33 per cent highlight leadership behavior.
- 32 per cent offer work schedule flexibility.
- 29 per cent mention flexible work location and technology tools.
- 26 per cent point to training and upskilling opportunities.
- 24 per cent believe stimulating, meaningful work tasks play a key role.
- Only 2 per cent state that none of these strategies are relevant.
Industry-specific insights reveal that work-life balance and workload are especially valued in:
- Transport, logistics and automotive: 53 per cent
- Financials and real estate: 52 per cent
This demonstrates a growing emphasis on employee wellbeing as a strategic imperative in talent retention.
GCC employment trends: Mixed but positive regional picture
GCC employment trends: Q2 2025 overview
Zooming out to the broader region, the GCC job market grew by one per cent in Q2 2025, driven by project delivery, strategic execution, and varying economic conditions across member states.
Where government initiatives and infrastructure projects progressed, hiring strengthened. In contrast, regions facing policy delays or reform rollouts experienced slower recruitment.
Hiring was largely focused on operations, delivery, and revenue-generating roles, especially in real estate, infrastructure, and technology. The report highlights a shift from ambition to execution, with hiring now closely tied to tangible business outcomes.
Economic pressures and sectoral demand
Q2 2025 brought new economic headwinds. Delayed interest rate cuts in the US and Europe, Red Sea disruptions, and tighter financial conditions led many businesses to adopt a cautious investment approach.
Shipping delays caused by Red Sea tensions increased freight costs and caused operational bottlenecks in manufacturing, retail, and logistics. While oil exports remained stable, resource reallocation and timeline adjustments became necessary across sectors.
Nevertheless, regional governments maintained investment commitments, which helped to stabilise labour markets.
Finance, banking, and compliance roles in demand
Within the GCC, specific roles saw sharp growth:
- Senior finance positions grew eight per cent, driven by capital expansion, joint ventures, and regulatory pressure.
- Hiring in internal audit, ICFR, and compliance surged, particularly in Saudi Arabia and the UAE.
- Broader finance roles rose by four per cent, with demand for FP&A specialists and treasury professionals.
- In banking (up three per cent), growth in M&A, AI integration, and governance-tech hybrid roles fueled demand.
By contrast, strategy hiring remained flat, as companies deprioritised senior roles, favouring interim consultants and specialist expertise to maintain agility.
Despite global and regional headwinds, the UAE’s employment landscape remains resilient, with 45 per cent of employers planning to hire in Q4 2025.
While some sectors face structural shifts, others, especially consumer, logistics, finance, and IT, are powering ahead.
From company expansion to AI-driven recruitment and retention based on flexibility and recognition, the UAE job market continues to evolve, strategically, cautiously, and ambitiously.
