PEOPLE POWER TOPS AI IN LATEST RESEARCH AS UK SKILLS GAP DECLINES FOR SECOND YEAR
- Only 10% of employers are using AI to reduce headcount, however workers with AI skills are the most difficult to find
- UK skills gap declines for a second consecutive year
- ManpowerGroup encourages employers to focus on the skills and talent they need tomorrow to future proof their businesses
LONDON (26.02.26): Employers are not replacing people with Artificial Intelligence (AI). Despite the hype, only 10% of employers are using AI and automation to replace headcount. This is one of the key findings from ManpowerGroup’s 2026 Talent Shortage Survey.
While AI may be having minimal impact on headcount, it has, for the first time, been identified as the skill (19%) that organisations are having the most difficulty finding. Contrary to what many might assume, this does not cover tech skills but instead points to literacy and confidence in using AI to support existing roles.
Michael Stull, Managing Director, ManpowerGroup UK, says: “Our research continues to demonstrate the power of people. Machines and AI can help to amplify productivity and effectiveness, but only so far. People are the vital component in unlocking the full potential of AI. That is why we are seeing increasing demand for these skills, as people and AI need to work in tandem.”
The survey also identified a year-on-year decline in the number of UK businesses struggling to find skilled talent overall. This figure is down marginally from 76% in 2025 to 73% in 2026.
Stull continues: “For 10 consecutive years the skills gap in the UK increased, so it’s encouraging to see a more positive trajectory. However, two years of improvement doesn’t negate the fact that the skills shortage is still too high, pointing to a deeper structural issue. Employers need to ensure they are not just thinking about the talent they need today; instead focusing on the talent they require tomorrow to future-proof their business.”
Additional key trends highlighted within the survey include:
Organisations are looking to protect their current talent rather than replace or outsource
When looking at how talent shortages are being handled, organisations recognise the importance of nurturing and protecting current talent, by prioritising upskilling and reskilling existing employees (33%).
Encouragingly, organisations are not seeing AI or automation (10%) or outsourcing externally (9%) as the way to plug the talent gap, with both these fixes appearing 10th and 12th respectively on the list of ways to solve talent shortage issues.
Public services invest in more training than any other sector, yet hiring is still a challenge
Public sector, health and social care has the highest upskilling rate (37%), yet 77% of these frontline organisations still face talent shortages, up 4 percentage points on the global average of 73%. This suggests the crisis in public services in the UK is deep rooted, with issues covering perception, pay and growing demand.
The automotive industry has the greatest talent shortage
92% of automotive businesses in the UK report that they are finding it difficult to source talent with the skills they need. At nearly 20 percentage points higher than other industries (where the skills shortage average is 73%) and 21 percentage points above the global average, this signals a sector which is severely constrained. Engineering is the skill which is hardest to find (46%), followed by manufacturing and production (25%).
The UK’s most severe shortages are not in London or the South East
The greatest pressure on sourcing skilled talent does not correlate with the most populated and competitive labour markets. Instead, Yorkshire & Humber (15%), which is considered a less buoyant jobs market, has the greatest talent shortage.
For more information about ManpowerGroup’s 2026 Talent Shortage Survey, visit: Global Talent Shortage 2026 – UK
ENDS
Notes to Editors
Media Contact Details:
Ania Krwawicz-Sheath and Jordan Spry
Press.office@manpower.co.uk
Survey Methodology:
ManpowerGroup interviewed 39,063 employers in 41 countries: Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Colombia, Costa Rica, Czech Republic, Finland, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Israel, Italy, Japan, Mexico, Norway, Panama, Peru, Poland, Portugal, Puerto Rico, Romania, Singapore, Slovakia, Spain, Sweden, Switzerland, Taiwan, The Netherlands, Türkiye, United Arab Emirates (U.A.E.), United Kingdom (U.K.), United States of America (U.S.). The fieldwork was completed in all markets between October 1 – 31, 2025. In the UK, the survey included responses from 2,261 businesses.
About ManpowerGroup
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organisations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organisations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills.
Our expert family of brands – Manpower, Experis, Brook Street and Talent Solutions – creates substantial value for candidates and clients across more than 75 countries and territories and has done so for over 75 years. We are recognised consistently for our diversity – as a best place to work for Women, Inclusion, Equality and Disability, and in 2025, ManpowerGroup was named one of the World’s Most Ethical Companies for the 16th year – all confirming our position as the brand of choice for in-demand talent. For more information, visit www.manpowergroup.co.uk, or follow us on LinkedIn, Instagram, YouTube and Facebook.
