The UAE labor market experienced a notable cooling period during April and May 2026, with overall hiring activity dropping by 23% compared to the previous year. According to the latest Naukrigulf Hiring Index, this decline is largely attributed to the regional military conflict that began in late February, which has hampered trade, tourism, and broader economic momentum. Entry-level and mid-range positions saw the most significant impact, with roles offering salaries under Dh10,000 suffering a 26% decrease. In contrast, higher-paying executive roles remained relatively stable, as companies continued to prioritize filling these critical positions despite the challenging economic climate.

While the general job market contracted, the technology sector proved remarkably resilient. Positions in IT and digital development saw a minimal decline of 6%, while specialized roles in artificial intelligence, machine learning, and cybersecurity actually saw growth of approximately 20%. Other sectors faced steeper challenges; sales, marketing, and human resources roles saw significant double-digit drops, and the oil and gas industry experienced the sharpest decline at 30%. Despite these shifts, employer demographics remain largely unchanged, with the majority of companies focusing on skills rather than nationality, though Arab, European, and South Asian candidates continue to be among the most sought-after demographics for specific specialized functions.