Indian employers are facing intensified hiring challenges in 2026, with 82% reporting difficulty in filling roles, according to the 2026 Talent Shortage Survey conducted by the ManpowerGroup.
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%.
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.
India ranks among the most talent-constrained markets globally, alongside countries such as Slovakia (87%), Greece (84%), and Japan (84%).
According to Sandeep Gulati, MD, India and the Middle East, ManpowerGroup India, “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 prioritising 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 were 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
Organisational 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 including 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%) are critical levers.
