New Delhi Feb 27: Employers in India are facing intensified hiring challenges in 2026, with 82% reporting difficulty in filling roles, according to the 2026 Talent Shortage Survey released today by ManpowerGroup  For the first time, Artificial Intelligence (AI) skills have surpassed all others to become the most difficult skills for employers to find, overtaking traditional engineering and IT capabilities. Based on responses from 3,051 employers across India, the findings show that talent pressure has increased compared to last year and remains significantly above the global average of 72%.

The research, covering more than 39,000 employers across 41 countries, reveals that modest relief in global hiring (72% vs 74% in 2025) has been offset by fierce competition for AI capabilities. It also highlights a widening structural skill mismatch as organizations struggle to secure both advanced technical expertise and essential soft skills. India ranks among the most talent-constrained markets globally, alongside countries such as Slovakia (87%), Greece (84%), and Japan (84%).

According to Mr. Sandeep Gulati, Managing Director, India and Middle East, ManpowerGroup India, “India’s talent shortage at 82%, significantly above the global average of 72%, signals a structural transformation in the labour market rather than a cyclical one. The surge in demand for AI skills – particularly AI literacy and model development – reflects that AI is not replacing jobs but fundamentally reshaping how work gets done. Employers are no longer hiring only roles; they are hiring future readiness. To remain competitive in this new talent-scarce era, organisations must move beyond conventional hiring. With 37% already prioritizing upskilling and 35% expanding access to new talent pools, building AI capability at scale must become a long-term workforce strategy.”

KEY INDIA FINDINGS FROM THE 2026 TALENT SHORTAGE SURVEY

  • AI Creates a New Hierarchy of Technical Demand

AI Model & Application Development (39%) and AI Literacy (38%) now lead the ranking of hard-to-find skills, followed by Sales & Marketing (24%), Traditional IT/Data skills excl. AI (23%) and Engineering (21%). Together, AI capabilities displace traditional IT & Data skills, which fell to fourth place and reduced by almost half (42% in ‘25), signalling a rapid realignment of strategic talent investment toward AI-driven capabilities.

  • The Human Edge Becomes More Valuable

Even amid the surge in demand for AI, core human skills remain in-demand. Communication, Collaboration & Teamwork are the most sought-after attributes at 39%, followed by Critical thinking and problem-solving (37%), Professionalism & Work Ethic (35%) and Adaptability & Willingness to Learn (3%), reinforcing the enduring value of interpersonal skills.

  • Geography Defines the Scarcity Experience

The pressure to find talent is universal, yet its intensity varies dramatically by location. Employers in Germany (83%), India (82%), France (74%), and the U.K. (73%) face significant shortages, while the U.S. (69%) tracks slightly below the global average. China (48%) stands out as the least constrained major market, revealing a fragmented global landscape where local conditions dictate competitive strategy.

  • Scale Exacerbates the Challenge

Organizational size significantly impacts hiring success. The largest companies, those with 1,000-4,999 employees report the highest shortage rate (86%). This is 7 points higher than the smallest firms (under 10 employees at 79%).

  • Scarcity Is a Cross-Industry Phenomenon

The talent challenge spread across industries with those facing the most strain include – Automotive (94%), Information & Finance/Insurance (85%), Professional, Scientific, and Technical Services/ Construction and

Real Estate/Tech & IT Services (84%).

  • Employer Strategy: Invest, Adapt, and Compete

Faced with structural scarcity, 91% of employers are deploying a mix of strategies. The primary focus is on internal development and flexibility: Upskilling/Reskilling (37%) leads, followed by offering more Schedule Flexibility (26%) and Location Flexibility (25%). To compete externally, Targeting New Talent Pools (35%) and Increasing Wages (24%) and critical levers.

GLOBAL CONTEXT

Globally, 72% of employers report difficulty filling roles in 2026, reflecting a structural workforce imbalance. The most difficult skills to source worldwide include AI literacy, and AI model development, Engineering, Sales & Marketing and Manufacturing & Production – underscoring that AI capabilities are now universally scarce. Countries reporting the lowest talent shortages include China (48%), Poland (57%), and Finland (60%).

To view the complete results for the 2026 ManpowerGroup Talent Shortage Survey, including global and country data, visit https://www.manpowergroup.co.in/global-talent-shortage-survey-india-report-2026.html . The next survey will be released in January 2027 and will report on talent shortage expectations for 2027.