UAE Achieves Top Rankings In Global Competitiveness Indicators For Labour Markets In 2024

The UAE's labour market is at the forefront of global competitiveness for 2024. It excels in key indicators that assess the progress and development of labour systems worldwide. The Ministry of Human Resources and Emiratisation's ‘Labour Market Observatory’ reveals that the UAE leads globally in employment rate, absence of labour disputes, low termination costs, and workforce ratio, as per the Institute for Management Development World Competitiveness Yearbook 2024.

In the Global Labour Resilience Index (GLRI) 2024 by Whiteshield, the UAE ranks first in the Arab world. It holds second place globally for workforce growth and lack of bureaucracy. Additionally, it ranks third globally in main labour market index, residency law flexibility, and employment growth according to the World Competitiveness Booklet 2024.

The UAE also achieved fourth place globally in several indicators: long-term unemployment rate, unit labour costs for the total economy, expectations index, global expertise index, and labour regulations index. Moreover, it stands fifth globally for foreign skilled workers and unemployment legislation.

Dubai and Abu Dhabi are recognised as top cities to work in, ranking third and fourth globally respectively. This is according to the Global Talent Analysis: Talent Mobility Patterns and Preferred Destinations by TotalJobs2024. The UAE's comprehensive social protection system covers 8.4 million employees across federal government and private sectors.

This system ensures unemployment protection for all nationalities and economic sectors. Furthermore, a financial entitlements protection programme safeguards 98.8% of private sector workers' rights. The UAE plans to expand its health insurance programme by 2025 to cover all workers comprehensively.

Innovative Labour Initiatives

The UAE introduced an optional "Savings System" as an alternative to the end-of-service bonus system. This offers employees a new way to manage their financial benefits. The country also pioneered the Midday Break initiative in the region.

This initiative bans outdoor work from 12:30 to 3 p.m., from June 15 to September 15 annually. It has been a key part of UAE labour regulations for two decades, protecting workers from harmful sun exposure during peak summer heat.

This year saw the establishment of 6,000 rest areas with basic services for delivery workers nationwide. These were set up with delivery companies' cooperation and government support.

With inputs from WAM