Many companies plan to increase hiring this year, but might not find the right talent to fill roles

Thinking about the labor market might be making some HR pros a little dizzy…

Many companies downsized their workforces in the last year. But, the latter half of this year may look different as the majority of hiring managers (66%) expect to increase hiring, up nine percentage points from last year, according to a recent survey from staffing firm Robert Half.

“We’re living at a time when things are changing so constantly, and so regularly, and much of that is influenced by external factors,” Robert Hosking, an executive director at Robert Half, said. “But, at the same time I think what we found, and we saw, [is] that increase in permanent hiring or the expectation of increase for permanent hiring in the second half of 2026…and I think that was a positive sign.”

Mismatch with a knick-knack paddywhack. Mismatches in the labor market can happen when organizations want to advance and innovate but don’t have the talent infrastructure to do so, and many employees and candidates want to meet the talent demand but need more resources to upskill or reskill, Hosking told HR Brew.

There’s been a growing labor mismatch in recent years, Hosking said. Many job seekers are struggling to find opportunities while many HR pros struggle to fill roles.

For some industries, AI encroaching over certain roles could be causing this mismatch, Hosking said, as companies invest more in the tech. But, it’s also prompted a growing demand for AI skills which many people pros are having a hard time finding in the labor market, he added.

“We’re also seeing that development of new jobs, so creation of jobs that require different skills at the same time that there may be a reduction of a job or two within organizations,” Hosking said. “That’s what’s causing this disruption where the skills required are different than the skills that people have.”

And the roles that require human creativity and expertise aren’t seeing as much of a decline due to AI as some forecasted, Hosking said. Entry-level and administrative roles may be eliminated in some organizations, he said, but the demand for AI skills is causing an upheaval to existing job descriptions, titles, and roles.

AI-related job titles have been on the rise in the US, as 822 job postings featured the word “AI” in Q1 2026, up from just 264 in Q1 2022, HR Brew previously reported, and the majority (63%) of “AI-touched job titles” were in non-tech fields, like education and healthcare.

“The title has, maybe, modified a bit. The job has expanded, so it’s not just maybe one or two skills the person’s using. They’re actually tapping into other skills or other capabilities,” Hosking said.

What HR can do. People leaders may need to take a step back before looking forward, Hosking said, and be clear with employees about current and future job expectations.

“Make sure that everybody is well aware of strengths and areas of opportunity, and then help them build plans around it,” he said. “Looking forward to be able to say, ‘What are we going to need? What are the things that are likely going to change or happen before we get there?’”