UAE firms signal surge in Q4 hiring momentum

The city-state’s employers have set a striking pace as they head into the final quarter of 2025: a Net Employment Outlook of 45 per cent signals that nearly three in five organisations expect to expand their workforces. That optimism comes amid shifting global headwinds, structural reforms, and a rising demand for specialised talent.

The ManpowerGroup Employment Outlook Survey canvassed 525 UAE employers across sectors to assess hiring intentions. A positive balance of 45 per cent means that those anticipating workforce increases outnumber those expecting reductions by nearly half. This figure places the UAE among the world’s more aggressive labour markets, especially given challenges such as global trade uncertainty, rising automation, and fluctuating commodity prices.

This projected hiring boom is not evenly distributed. The strongest demand lies in transport, logistics and automotive, energy and utilities, and consumer goods and services. These sectors appear ready to leverage infrastructure projects, green energy transitions, and regional consumption growth. Meanwhile, the information technology sector is showing solid demand at +48 per cent, reflecting sustained digital transformation pushes.

Driving much of this confidence is corporate expansion: 40 per cent of participating firms cited scaling operations as their primary reason for hiring. Another 28 per cent pointed to pivoting business models and growth into new areas. In addition, nearly 30 per cent of respondents acknowledged that talent shortages—and competition for specialised skills—are influencing recruitment strategies.

Yet the buoyant sentiment is tempered by caution. Roughly 10 per cent of employers still expect to trim staff, particularly in roles vulnerable to automation or in sectors facing structural disruption. Around 15 per cent responded that they will hold staffing constant, prioritising internal upskilling over external recruitment. In interviews, some HR executives noted that while they want to hire aggressively, wage inflation, geopolitical uncertainty, and regulatory shifts may prompt them to phase recruitment over several quarters.

Regional and global context strengthens the UAE’s position. In the third quarter of 2025, the UAE recorded a world-leading NEO of +48 per cent. That marked a standout alignment with its long-term growth strategy, and the Q4 figure of +45 per cent suggests sustained momentum rather than a cyclical spike. Elsewhere, the global average NEO stood at +24 per cent during Q3 — placing the UAE’s outlook nearly double the global benchmark.

Analysts view this hiring optimism as part of a broader strategy to reposition the UAE as a knowledge-economy hub. Recent government initiatives have focused on advanced manufacturing, artificial intelligence, sustainability, and logistics corridors. These programs have triggered demand not only for engineers and technicians but also for data scientists, sustainability consultants, and cross-disciplinary professionals. In one corporates sector round-table, a senior UAE CEO observed that “the competition for deep tech talent is global, and we must offer not just pay but opportunity, stability and a pathway for growth.”

Labour authorities are also aligning policies with employer needs. New visa frameworks, targeted Emiratisation programmes, and regulatory incentives for R&D investment are being synchronized with workforce forecasts. At the same time, the UAE’s PMI for non-oil activity has held above the expansion threshold, underlining demand growth across private sectors and supporting hiring intent.

However, potential headwinds remain significant. Global supply chain disruptions, slowing demand in key export markets, and monetary tightening in major economies could dampen growth. Employers may delay or scale back hiring plans if external pressures intensify. Some labour economists warn of mismatches between skills supplied locally and those demanded, especially in emerging fields.