The United Arab Emirates’ use of artificial intelligence to guide labor market policy is setting a benchmark that other countries could follow, the head of the International Labour Organization (ILO) said, praising the UAE’s data-led approach to employment planning.
Speaking at the World Governments Summit 2026 in Dubai, ILO Director-General Gilbert F. Houngbo said the UAE is using AI to analyze and predict labor market trends, enabling policymakers to act quickly and effectively. He described the approach as a practical model for governments seeking smarter, evidence-based labor reforms.
Houngbo also highlighted the UAE’s expanding role in advancing labor standards, skills development and inclusive employment, noting its active participation in ILO forums and close cooperation through the Ministry of Human Resources and Emiratization.
On global trends, Houngbo said employment conditions are gradually improving, with worldwide unemployment estimated at around 4.9 percent in 2026. However, he warned that deeper challenges persist, including widespread informal employment and high levels of youth exclusion from the workforce.
The ILO estimates that about 2.1 billion people remain in the informal economy, while the number of people seeking work but not employed rises to nearly 400 million when discouraged workers are included, highlighting a significant global jobs gap.
Despite these pressures, Houngbo said labor markets are showing resilience but require sustained policy action. He stressed that the ILO is refocusing on its core mandate of setting and enforcing labor standards amid rapid technological change and shifting global dynamics.
Addressing artificial intelligence, Houngbo said its long-term impact remains uncertain. While some jobs are vulnerable to automation, ILO estimates show only about 3.3 percent of roles are fully automatable, with nearly a quarter more likely to be transformed rather than eliminated. He concluded by emphasizing continued investment in skills, reskilling and lifelong learning.
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