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Strengthened Hiring Intentions: A Beacon of Optimism

As the job market prepares for the second quarter of 2026, ManpowerGroup's Employment Outlook Survey indicates a positive shift in employer hiring intentions. This marks the strongest outlook since the third quarter of 2022, with a Net Employment Outlook (NEO) of 31%, up six points from the previous quarter and seven points year-over-year. The encouraging data was gathered from over 41,700 employers across 42 countries between January 1 and February 3, 2026, just prior to the onset of geopolitical tensions in the Middle East.

Key Highlights from the Survey

Approximately 45% of organizations expect to bolster their workforce in Q2, while 40% plan to retain their current staff levels. It is also noteworthy that the percentage of employers anticipating job reductions has dropped to 13%, a three-point improvement from the last quarter. Only a small 2% of employers remain uncertain regarding their hiring intentions, which is significantly down from 4% in the previous survey.

Jonas Prising, Chair and CEO of ManpowerGroup, points out the nuances of the data. "While there are employers focused on growth and filling existing roles, a substantial number are pausing to assess the environment before making commitments. Despite geopolitical uncertainties, businesses have adapted well to complex situations. This trend reflects that organizational leaders view human talent as crucial for driving growth, even as they explore where artificial intelligence (AI) adds real value," he remarks.

AI's Role in Workforce Enhancement

The survey further explores how AI is being integrated into workforce strategies, unveiling significant adoption rates but also highlighting inconsistent returns. An impressive 67% of organizations report using AI in various hiring processes, onboarding, or training initiatives. Notably, usage is markedly higher in the Asia Pacific region, soaring to 80%, with China at the forefront with a staggering 95% adoption rate.

When assessing returns on investment, learning and development yield the highest perceived gains from AI, with 27% of employers citing positive results. This is more than double the favorable impact noted in talent acquisition, reported at 9%. Nevertheless, 8% of employers express that AI fully meets their expectations in the areas of hiring and training. Alarmingly, 16% report that they have yet to see any positive returns on their AI investments.

The survey lists privacy and regulatory hurdles (13%), insufficient training (10%), and a workforce lacking AI skills (10%) as predominant barriers to a more widespread application of AI.

Insights by Sector and Region

Sector Perspectives:

• - The Information sector leads with the most optimistic hiring plans at 41%, closely followed by the Finance and Insurance sector at 35%.
• - Conversely, the Hospitality sector indicates a more cautious approach, with only 22% signaling net positive hiring intentions.

Regional Forecasts:

• - The Asia Pacific region boasts the highest global outlook at 39%, reflecting a steady increase over the past quarters. India stands out with an impressive confidence level of 68%, followed by Vietnam at 47% and Australia at 33%. Hong Kong lags behind with a mere 11%.
• - The Americas display a robust second position with a hiring outlook of 37%. Brazil demonstrates the highest confidence at 55%, succeeded by Panama at 44% and Costa Rica at 43%. Notably, the U.S. remains resilient at 38%, while Colombia presents the most cautious hiring stance in the Americas at 18%.
• - Europe and the Middle East present the lowest overall outlook at just 23%, though there is a modest uptick from the previous quarter, driven by the United Arab Emirates' impressive 60%.

Conclusion

The latest findings from ManpowerGroup's survey paint a picture of cautious optimism in global hiring practices as organizations adapt to evolving market conditions. With a pronounced integration of AI and a clear recognition of the necessity for human talent, employers are carefully navigating today's complexities. For a thorough exploration of these global hiring trends, the full Q2 2026 Employment Outlook Survey can be accessed at ManpowerGroup's website. The next survey will be released in June 2026, projecting hiring expectations for Q3 2026.