AI-generated image / Courtesy: Gemini AI
U.S. employers are entering 2026 with strong hiring intentions, but widespread skill shortages and the growing impact of artificial intelligence are expected to complicate recruitment plans, according to a new survey.
An Express Employment Professionals-Harris Poll survey found that 85 percent of hiring managers report a positive outlook for the year ahead, while nearly two-thirds plan to increase headcount in the first half of 2026, the highest level since the study began in 2020.
Companies cited expansion into new markets and the need for new skill sets as key drivers of hiring.
Also Read: Coforge to acquire US-based Encora in $2.35 billion all-stock deal
The survey showed growing reliance on contingent labor, with 26 percent of companies planning to hire temporary or contract workers in 2026 and 83 percent open to using such workers to meet business needs.
Interest in recent college graduates remains steady, though fewer employers expect to hire students or retirees, indicating a more selective approach to talent sourcing.
Despite the upbeat outlook, 36 percent of employers said they have open roles they cannot fill. About half reported that applicants lack relevant experience, while others cited difficulty assessing informal or self-taught skills. Fewer companies identified pay, benefits, or work hours as major barriers, underscoring skills as the primary constraint.
Technology is also reshaping workforce decisions. Among firms planning to reduce staff, 39 percent pointed to increased use of automation or artificial intelligence, while 33 percent said they would not replace departing employees.
Overall, 91 percent of hiring managers expect challenges in 2026, with AI-related complexities, difficulty finding qualified candidates, and heightened competition for talent among the top concerns.
“As we move into 2026, companies that thrive will be those that invest in people and adaptability. Technology will continue to transform how we work, but human expertise and creativity remain irreplaceable,” said Bob Funk Jr., CEO, president, and chairperson of Express Employment International.
“Closing skill gaps isn't just a hiring challenge; it's a strategic opportunity for long-term growth," he added.
The Job Insights survey was conducted online in the United States by the Harris Poll from Nov. 3 to 19, among 1,002 hiring decision-makers.
ADVERTISEMENT
ADVERTISEMENT
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login