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The Talent Shortage of 2025 Shows No Sign of Slowing Down
While economic headwinds may have slowed down general hiring, the shortage of critical talent has not eased. In fact, the talent shortage is projected to intensify in 2026. The World Economic Forum projects that the average enterprise will face a 40% skills gap by 2027, while 63% of employers now view skill shortages as the top barrier to transformation. These figures support the many observations from other experts in the recruitment space that the need for skilled workers is only intensifying, creating a challenge for employers across all industries.
The Root Causes
As we mentioned in our 2025 Recruitment Trends Report, Baby Boomers are retiring at a rate of 10k people per day, which is outpacing the influx of younger, qualified labor, causing gaps in management and professional occupations.
Rapid technological advances are also creating data-driven roles related to AI, but the demand isn’t meeting the supply. To cope with these changes, other trends like skills-first, overseas, and remote hiring are in play. We will discuss these specific trends later on in this report.
Healthcare, engineering, construction, and tech sectors are experiencing acute shortages, with construction alone needing nearly 500,000 additional workers by 2026. To navigate these difficulties, employers must innovate continually to attract and secure the skills they need for growth and resilience.
The Ripple Effects of the Ongoing Talent Shortage
1. More Career “Parking”
Many workers are prioritizing stability, with 73% planning to stay in current roles, shrinking the pool of active and passive candidates. Only transformative opportunities will move top talent. This also reduces the amount of open roles.
2. An Ongoing Need for Upskilling
To mitigate the impact of the talent shortage, companies should invest in upskilling and re-skilling programs for current staff to retain and develop talent.
3. Hiring Based on Skills First
With skills in AI in high demand and universities not updating AI courses quickly enough, hiring AI experts with degrees has been a challenge. Opting to hire those with the necessary skills but not necessarily a degree has been on the rise.
4. More Advanced Recruiting Strategies
The ongoing talent shortage into 2026 will make it more important than ever for companies to be one step ahead and innovate on their recruiting strategies. Addressing the anticipated talent shortage requires a multifaceted approach that includes investing in employee development, adapting to technological changes, and building candidate pipelines.
5. More Proactive Talent Pipelining
Companies that are proactive in sourcing and nurturing a talent pool will be better positioned to manage the evolving talent landscape and maintain their competitive edge compared to those that don’t have talent pools. To go beyond the “free” data online that can be outdated and off-target, consider hiring the expertise of a Recruiting Research Firm.
Beat the Shortage: Make a Hiring Plan in 2026
As the talent shortage continues to tighten its grip in 2026 and beyond, the most successful organizations will be those that adapt quickly and plan. Employers can no longer rely on traditional recruitment tactics or assume that market conditions will correct themselves.
Instead, they must double down on long-term workforce strategies. Investing in upskilling, embracing skills-based hiring, and proactively building talent pipelines. The coming years will reward employers who view talent as a renewable resource rather than a fixed one, shaping a more resilient and future-ready workforce.
