UAE continues to lead global competitiveness indicators in labour markets

 

The UAE's labour market continues to lead the global labour markets in the most prominent international competitiveness indicators for 2024, which monitor the progress and development in various aspects of the labour system.

Data from the Ministry of Human Resources and Emiratisation's ‘Labour Market Observatory’ showed that the UAE ranked first globally in four indicators in the Institute for Management Development World Competitiveness Yearbook 2024, namely employment rate, lack of labour disputes, low termination compensation costs, and workforce ratio.

The UAE ranked first in the Arab world in the Global Labour Resilience Index (GLRI) 2024, issued by the global consultancy firm Whiteshield, while it ranked second globally in workforce growth, absence of bureaucracy, and third globally in the main labour market index, flexibility of residency laws, and employment growth, in the World Competitiveness Booklet 2024.

According to the same report, the UAE ranked fourth globally in five indicators, namely the long-term unemployment rate index, the unit labour costs index for the total economy, the expectations index, the global expertise index and the labour regulations index: Unemployment Rate, Global Expertise Index, and Labour Regulations Index, while it ranked fifth globally in Foreign Skilled Workers and Unemployment Legislation.

In terms of best cities to work, Dubai and Abu Dhabi ranked third and fourth globally, respectively, according to the Global Talent Analysis: Talent Mobility Patterns and Preferred Destinations - by TotalJobs2024.

The UAE has a comprehensive system of social protection and workers' welfare, including unemployment protection for 8.4 million employees and workers in both the federal government and the private sector. This system covers all nationalities and economic sectors, ensuring wide-ranging support for the workforce. Additionally, the workers' financial entitlements protection programme safeguards 98.8% of the private sector workforce.

The UAE is also expanding its health insurance programme to provide comprehensive health coverage for all workers in every sector, starting from 2025. Furthermore, the country is introducing an optional alternative to the end-of-service bonus system, known as the "Savings System," offering employees a new way to manage their financial benefits.

The UAE is the first country in the region to implement the Midday Break initiative, a ban on working in the sun and outdoors, which prohibits the employment of workers from 12:30 to 3 p.m. in open areas under the sun, from 15 June to 15 September each year.

The initiative has been a cornerstone of UAE labour regulations for the past 20 years. It ensures that workers are protected from the harmful effects of working under direct sunlight during the hottest summer months. This year, 6,000 rest areas equipped with basic services were provided for delivery workers across the country, in coordination with delivery companies and supported by government agencies.