Unemployment Rate Evolution in United Arab Emirates from 1995 to 2022

The UAE’s unemployment rate was low in the mid-1990s, starting at 1.8%, as the oil industry and rapid infrastructure development created numerous job opportunities. However, gradual economic diversification and population growth led to a rise in unemployment, reaching 3.1% in 2005. The 2020 COVID-19 pandemic caused a significant spike to 4.3%, as global travel restrictions and a slowdown in trade impacted key sectors like tourism.

Since 2021, UAE’s unemployment rate declined to 2.9% by 2022 due to a rebound in tourism and new economic policies aimed at boosting the private sector. The government’s strategic initiatives have been crucial in sustaining low unemployment and economic resilience.