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Middle East Edition
25th August 2026
 
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THE HOT STORY

Israel imports record foreign workforce to replace Palestinians

Israel now has 250,000 legal and illegal foreign workers, the highest number ever, according to Israel Population and Immigration Authority data. The figures show that 26.5% of all current legal and illegal foreign workers are from Thailand, 21.7% from India, 11.8% from China, 11.2% from Sri Lanka, 9.5% from the Philippines, 8.9% from Uzbekistan, 4.4% from Moldova, and 1.7% from Nepal. The surge follows the closure of borders to Palestinian workers after October 7, 2023. The government plans to increase this number to 330,000, but housing remains a significant challenge. Many foreign workers face overcrowded and inadequate living conditions. Yoki Moshonov, chief executive of Ovedly, a company that provides services to foreign workers in Israel, observed: "Here they get five or six times the average salary than in their countries of origin. They come to Israel for just one purpose - to earn money for their families. They send 80% of their salary to their families . . . and are regarded as excellent workers."
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WORKFORCE

Dubai tracks staff with AI

Dubai's government will use artificial intelligence and data analysis to monitor employee efficiency across public-sector departments, extending workforce measurement beyond traditional attendance and output checks. The system, tied to the UAE's National Strategy for Artificial Intelligence 2031, is designed to give managers a broader, data-led view of performance and productivity across the emirate's civil service. It will track work patterns and output more closely for civil servants, while also helping officials compare results across departments and standardise decision-making. The initiative affects government workers in Dubai's public sector and is expected to feed performance data into management reviews, with implementation aligned to the emirate's wider digital-government agenda and AI adoption plans. Dubai launched its AI strategy in and aims to become a global AI hub by 2031.
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LEGAL

Kuwait clarifies when workers can quit without notice

Kuwait's Public Authority for Manpower (PAM) has informed private-sector workers that they can terminate their employment contracts without prior notice under specific conditions. These include breaches of the employment agreement, assault by the employer, or serious threats to health and safety. PAM's guidance, part of the “Know Your Rights” campaign, also details circumstances where contracts may end by law, such as the worker's death or employer bankruptcy. PAM emphasised that workers can challenge dismissals they believe are unjustified.
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HIRING

UAE warns employers against using unlicensed domestic worker recruiters

The UAE's Ministry of Human Resources and Emiratisation has warned employers to only use licensed domestic worker recruitment offices. Unlicensed agencies may lead to financial and legal risks. Licensed offices ensure trained workers and compliance with official pricing, offering a two-year guarantee. Employers can recover recruitment costs under specific circumstances, such as contract termination without valid reasons. The ministry aims to clarify rights and responsibilities, promoting stable employment relationships. Digital services are available for managing recruitment processes, while health insurance arrangements for workers are also highlighted. "Compliance by both sides was intended to create a more stable contractual relationship," the ministry said.
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ECONOMY

Madinah's booming development projects create 125,000 jobs

Madinah is experiencing significant growth with 280 development projects underway, primarily in the region's commercial sector. The Madinah Chamber of Commerce reported that these projects, valued at SR200 bn, will generate over 125,000 job opportunities. The projects span various sectors, including health, education, and tourism, covering over 30 millionmed influx of 30m visitors annually by 2030, aligning with Saudi Vision 2030's goals for economic transformation.
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LEADERSHIP

Lagarde could take over the presidency of the WEF

Swiss newspaper NZZ has reported ‌that European Central Bank chief Christine Lagarde could take over the presidency of the World Economic Forum next year. At a recent WEF board meeting near Geneva, Lagarde was reportedly described as a "putative candidate" to lead the organisation. Lagarde said last year that she was determined to complete her eight-year presidential term at the ECB, which runs until ​the end of October 2027.
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INTERNATIONAL

Starbucks cuts more than 200 corporate jobs as turnaround drive continues

Starbucks is laying off more than 200 corporate employees as chief executive Brian Niccol continues to streamline the business and target $2bn in cost savings by the end of fiscal 2028. The cuts include about 120 technology employees who declined to relocate to the company’s new Nashville office, as well as 104 roles in coffeehouse design and development, and do not involve additional cafe closures. The reductions follow 300 U.S. corporate layoffs earlier this year and around 2,000 corporate job cuts in 2025, alongside the closure of hundreds of U.S. stores. Starbucks is simultaneously investing in cafe operations and a new $100m Nashville office for 2,000 employees, while its turnaround has shown signs of progress, with recent quarterly sales and earnings beating expectations and the company raising its full-year same-store sales and earnings forecasts.

Finnish companies experiment with shorter working hours

A report from the Finnish Confederation of Professionals (STTK) looks at outcomes for four Finnish companies that have introduced different forms of shorter working hours. The report says innovative and flexible workplaces could turn new ways of working into a significant competitive advantage. Taina Vallander, of STTK's social impact team, says the focus should be less on whether working hours should be shorter or longer and more on how work itself is changing. "We are approaching the discussion about shortening working hours from the perspective of how we can improve employees' well-being and commitment, maintain their ability to work, and possibly extend their careers or distribute work differently," Vallander says.

Pacific unions want to be a part of remote worker schemes

Pacific trade unions are advocating for involvement in the recruitment of workers from Pacific nations for labour schemes in Australia and New Zealand. Currently, over 30,000 Pacific Islanders participate in the Pacific Australia Labour Mobility scheme, and an additional 20,000 are in New Zealand's scheme. Jodika Sharma from the Fiji Trade Unions Congress said unions need to be part of the hiring process to ensure proper worker selection and to verify employers to prevent exploitation. "The proper management of the whole system is important," she said. "The sending countries need to ensure that there is government to government agreements that specify how their workers will be managed on the other side."

Belittling the boss is not a sackable offence in UK

A UK employment tribunal has ruled that an employee's unflattering remarks about their boss did not constitute a sackable offence. The case involved Sahir Rahim, a senior manager at Associated British Ports (ABP), who lost his job after being overheard by ABP's Head of Programme Ben Hodgkin "loudly" criticising him.  Rahim's behaviour was later deemed "gross misconduct" and he lost his job because the relationship with his manager and the company had "broken down beyond repair." The tribunal has now found he was unfairly dismissed as he was not paid sick pay. Evidence from a senior manager indicated that she thought withholding sick pay was "a disciplinary measure" and "was the right course of action because of how the claimant had behaved in undermining Mr Hodgkin."
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OTHER

ICC slam latest US sanctions on senior staff

The International Criminal Court (ICC) has condemned US sanctions against its senior officials, including court president Judge Tomoko Akane and senior trial lawyer Abdoulaye Seye, calling them a “flagrant attack against the independence of an impartial judicial institution,” and emphasizing that such actions undermine the rule of law. Secretary of State Marco Rubio announced the sanctions, claiming they protect Americans from the ICC, which he labeled a “sham.” He vowed to dismantle the court through diplomatic means, including travel bans and pressure on member states. Balkees Jarrah from Human Rights Watch criticised the sanctions as a blatant disregard for international law that are aimed at shielding US and Israeli officials from accountability. The ICC said remains committed to its mandate, and will continue to operate independently in the interest of victims of international crimes.
 
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