The UAE’s use of artificial intelligence (AI) in labour market analysis and policymaking could serve as a model for other countries, regionally and globally, Gilbert F. Houngbo, Director-General of the International Labour Organisation (ILO), said, adding that “this experience could be replicated elsewhere".

“We see how the UAE government is using AI to carry out deep analysis and prediction of the labour market, ensuring that policy decision makers have the tools to act in a timely manner,” he said in an interview with the Emirates News Agency (WAM) on the sidelines of the World Governments Summit (WGS 2026) in Dubai.

Houngbo also highlighted the UAE’s growing role in advancing labour standards, skills development and inclusive employment, describing cooperation with the country as constructive and forward looking.

He said that the UAE is 'quite very active' in ILO deliberations through international labour conferences and the work of the ILO’s Governing Body. "The organisation is working closely with the UAE through the Ministry of Human Resources and Emiratisation,” he said.

Turning to global labour market trends, Houngbo said the ILO has recently completed its annual World Economic and Social Outlook, noting that overall employment conditions are improving. “The global employment rate was estimated for 2026 to be around 4.9 percent, which is slightly better than in recent years,” he said.

However, he cautioned that headline figures conceal serious challenges. “When you start unpacking the data, you realise that we still face major challenges,” he said. “We have around 2.1 billion people still working in the informal economy, with all that implies in terms of insufficient protection and negative impacts on tax collection,” he added.

Youth exclusion from labour markets remains a major concern, he said, noting that young people not in employment, education or training, the NEETs, remain at very high levels. While global unemployment stands at about 4.9 percent which is around 186 million people, he said the figure rises sharply when 'people who have given up looking for job' are included, which he described as 'job gap'. “When you factor in people who have given up looking for jobs, the figure rises to around 400 million people who want to work but are not working today,” he said.

Despite these challenges, Houngbo said global labour markets are showing signs of improvement, while stressing the need for sustained policy action.

Outlining the ILO’s priorities, he said the organisation is operating in a complex global context where multilateralism is being questioned, alongside geopolitical shifts, demographic pressures and rapid technological change. “For us at the ILO, it is crucial to refocus on our core mandate,” he said.

He reaffirmed that the ILO’s role as a normative agency remains central, through setting international labour standards, ensuring their ratification and implementation, and supporting countries via its independent supervisory system.

Houngbo also highlighted the need to adapt labour protections to new forms of work. “The growth of small businesses and self employed workers is blurring the lines between workers, employers and SMEs, so it is important to improve the protection of small businesses in this regard,” he said. “This is where we want to refocus.”

“At the centre of the ILO’s work are its fundamental principles and rights at work, including freedom of association, collective bargaining, social protection and social dialogue, which remain essential for promoting decent work worldwide,” he said.

Addressing the impact of AI and digital technologies, Houngbo said the pace of change makes long term predictions difficult. “If you ask what the impact of AI on labour markets will be 10 or 20 years from now, I do not think anyone can give a definitive answer,” he said.

He noted that while millions of jobs have been affected by automation, millions of jobs have also been created. According to ILO estimates, jobs that could be fully automated account for about 3.3 percent, while nearly 25 percent of jobs and tasks are exposed to transformation and are more likely to benefit from augmentation rather than elimination,” he said.

Houngbo concluded by stressing the importance of investing in people. “This brings us back to the importance of skills development, upskilling, reskilling and lifelong learning,” he concluded.