Strong US Hiring Sentiments Face a Reality Check in 2026: Skill Shortages and AI Challenges Ahead

PR Newswire
5 Min Read

OKLAHOMA CITYDec. 29, 2025 /PRNewswire/ — Businesses are entering 2026 with renewed confidence and ambitious hiring plans.

According to a recent Express Employment Professionals-Harris Poll survey, optimism is high, headcount growth is accelerating and companies are embracing contingent talent to meet evolving needs, even as skill gaps remain the biggest challenge.

Hiring managers are feeling good about the year ahead, with 85% saying they have a favorable view. This is almost the same percentage as late 2024. But 37% have a bad outlook, which is the same as earlier this year.

Two-thirds plan to hire more people in the first half of 2026, which is the highest amount since this research began in 2020. Many companies are hiring to enter new markets and learn new skills. 39% are focused on expanding their markets, while 38% are looking for new skills.

Temporary and contract workers are also becoming an important part of workforce plans. More than one in four organizations (26%) plan to hire temporary workers in 2026. Also, 83% of companies indicate they are willing to use temporary workers to satisfy business demands, which is up from earlier this year. This trend is growing around the world, with 65% of business leaders saying they want to hire more temporary workers.

Interest in recent college graduates is still high at 51%, but fewer employers plan to hire college students (33%) or retirees (10%). This shows that companies are being more selective about who they hire.

At the same time, automation and AI are having an effect on decisions about the workforce. 39% of organizations that plan to cut personnel say they will do so because they are using more technology, and 33% say they won’t hire new employees to replace those who leave.

Even though they want to hire more people, there are still problems.

Thirty-six percent of businesses say they have open positions they can’t fill. Skills, not income or benefits, are the main problem:

  • 50% say applicants lack relevant experience, up from last year.
  • 26% struggle to evaluate informal or self-taught skills.

At the same time, barriers connected to salary are going down, with fewer employers saying they don’t want to work the hours needed (21%), the pay isn’t competitive (19%), or the perks aren’t competitive (14%). These trends show that skill gaps, not incentives, are the main problem.

Most hiring managers predict problems in 2026, looking forward. Ninety-one percent expect problems, with the following being the most important:

  • AI-related complexities (46%)
  • Finding qualified candidates (40%)
  • Increased competition for talent (28%)

Fewer recruiting managers now say that there isn’t enough talent available to meet their company’s demands (20%, down from earlier this year).

“Companies that do well in 2026 will be those that put money into their employees and their ability to change.” Bob Funk Jr., CEO, President, and Chairman of Express Employment International, remarked, “Technology will keep changing how we work, but human knowledge and creativity are still irreplaceable.” “Filling in skill gaps isn’t just a hiring problem; it’s a chance for long-term growth.”

How the Survey Was Done

The Harris Poll did the Job Insights poll online in the US for Express Employment Professionals from November 3 to 19, 2025. They asked 1,002 US recruiting decision-makers.

More about Robert (Bob) Funk Jr.

Robert (Bob) Funk Jr. is the Chief Executive Officer, President and Chairman of Express Employment International, a global staffing franchise created and headquartered in Oklahoma City, Oklahoma. He is in charge of a group of workforce solution companies, including the main one, Express Employment Professionals, as well as a number of other brands that serve niche markets. The Express franchise brand is an international staffing organization that is the best in its field. It has franchise sites in the U.S., Canada, South Africa, Australia, and New Zealand.

About the company Express Employment Professionals

We work with folks at Express Employment Professionals. Express helps people and businesses grow by connecting job searchers with client firms. Our network of franchises throughout the world provides staffing solutions tailored to the needs of the communities they serve in the U.S., Canada, South Africa, Australia, and New Zealand. By 2024, they will have hired 427,000 individuals around the world, and since the company’s founding, they have hired more than 11 million people.

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