1. Global hiring outlook for Q1 2026 is at 24%, down year-over-year. 2. Economic conditions drive cautious hiring; AI's impact is currently minimal. 3. 40% of firms plan to increase hiring; 40% will maintain current staff. 4. Mid-sized companies show strongest outlook, with 28% hiring intentions. 5. Sector-specific highlights show Finance & Insurance most optimistic for hiring.
FAQ
Why Neutral?
While the hiring outlook is stable, it represents a slight decline year-over-year. This suggests a cautious approach rather than aggressive growth, which may not excite investors.
How important is it?
The survey data is significant for MAN's core business, reflecting employer sentiment and labor demand. However, the slight decline in the outlook tempers potential excitement.
Why Short Term?
The employment outlook is a quarterly indicator; thus, it holds short-term relevance. Changes in hiring trends will be monitored closely in upcoming quarters.
Global Employers Maintain Stable Hiring Outlook as Economic Conditions Shift
The latest ManpowerGroup Employment Outlook Survey has revealed that global employers are gearing up for steady hiring as they enter the first quarter of 2026. With insights drawn from over 39,000 employers across 41 countries, the study indicates a Net Employment Outlook (NEO) of 24%. This reflects a 4% decrease year-over-year, while also showing a 4% increase from the previous quarter. Notably, 40% of organizations intend to expand their workforce, while 40% plan to maintain the current headcount, and 16% expect reductions.
Trends in Hiring Motivations
Employers that are expanding are motivated primarily by organizational growth (37%) and investment in new business areas (26%). The survey also notes a significant shift in hiring strategies; only 19% of new hires are filling previous vacancies, indicating a strategic evolution in roles to align with current needs rather than simple replacements.
Headcount Reductions Driven by Economic Challenges
Among those planning to reduce their workforce, 29% attribute this to economic challenges, 24% to reduced market demand for specific roles, and 22% to the need to adjust staffing levels. In a notable trend, only 20% link potential cuts to automation, illustrating that economic pressures, rather than technological advancements, are influencing cautious hiring behavior.
Insights from ManpowerGroup Chair & CEO
“What we’re observing is a measured approach by employers in response to economic signals,” stated Jonas Prising, ManpowerGroup Chair & CEO. “The global outlook over the past nine quarters averages 24%, suggesting a resilient labor market despite an evolving economic landscape. Organizations continue to require human skills for growth, but hiring efforts are becoming more intentional.” Prising emphasized that while AI is set to enhance productivity in the future, current hiring trends are predominantly influenced by existing economic conditions.
Sector-Specific Hiring Trends
The survey also highlighted various sector insights, with some industries showing more optimism than others:
- Finance & Insurance: 32% optimistic hiring plans
- Information: 29% optimistic hiring plans
- Construction & Real Estate: 27% optimistic hiring plans
- Public Sector: 20% cautious hiring plans
- Health & Social Services: 20% cautious hiring plans
- Utilities & Natural Resources: 22% cautious hiring plans
Regional Hiring Plans: A Global Perspective
The survey also examined regional trends:
- Asia Pacific (APAC): Leading globally with an Outlook of 30%, unchanged quarter-over-quarter and up three points year-over-year.
- Americas: Strong Outlook of 26%, with Brazil leading at 54%.
- Europe and the Middle East: Reporting the lowest global Outlook at 20%, but up two points quarter-over-quarter.
Conclusion and Future Projections
To learn more about hiring trends worldwide and upcoming expectations, the full Q1 2026 ManpowerGroup Employment Outlook Survey can be accessed here. The next survey is scheduled for release in March 2026, projecting hiring expectations for Q2 2026.
About ManpowerGroup
ManpowerGroup® (NYSE: MAN) is a leading global workforce solutions provider, helping organizations navigate a rapidly changing work environment. With a presence in over 70 countries, the company aids businesses in sourcing and managing talent effectively. Recognized for its commitment to workforce diversity and inclusion, ManpowerGroup has been named one of the World's Most Ethical Companies multiple times.