Express Employment Professionals’ America Employed and Canada Employed press series explore the state of employment in North America, including everything from hiring expectations and HR challenges to job seekers’ optimism and shrinking the skills gap. Learn about the latest insights uncovered in a recent Express Employment Professionals-Harris Poll survey.
Hiring sentiments face a reality check in 2026. U.S. hiring managers have renewed confidence and ambitious hiring plans, while Canadian hiring managers are entering the year with cautious optimism. However, most companies anticipate facing hiring challenges due to growing skills gaps and evolving technology.
US Hiring Managers Report Positive Hiring Outlook
Hiring sentiment is strong, as 85% of hiring managers report a positive outlook for the year ahead. Temporary and contract workers are a key part of workforce strategies as 26% plan to hire contingent staff, and 83% say they are willing to use contingent workers to meet business needs.
Despite strong hiring intentions, challenges persist. Ninety-one percent anticipate obstacles, with the most pressing concerns including:
- AI-related complexities (46%)
- Finding qualified candidates (40%)
- Increased competition for talent (28%)
Canadian Hiring Managers Are Cautiously Optimistic
Less than half of companies (44%) plan to increase headcount in the first half of 2026. Almost as many (42%) plan to keep their headcount about the same, while 10% plan to decrease their numbers. Temporary and contract workers continue to be a key part of workforce strategies. Twenty-nine per cent of companies plan to hire contingent staff, and 71% say they are willing to use contingent workers to meet business needs.
Automation and AI are influencing workforce decisions. Among companies planning to reduce staff, 23% cite increased use of automation and AI, and 21% say they will not replace employees who leave. Among reported challenges, 29% say they have open positions they cannot fill. Skills are the primary obstacle.
- 49% say applicants lack relevant experience
- 47% cite lack of hard skills in applicants
- 44% point to applicants with lack of soft skills
- 13% struggle to evaluate informal or self-taught skills
“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 Chairman of Express Employment International. “Closing skill gaps isn’t just a hiring challenge; it’s a strategic opportunity for long-term growth.”
Read more about the latest employment insights in America Employed at ExpressPros.com and Canada Employed at ExpressPros.ca.
