Globally, many employers plan to sustain a stable hiring outlook going into 2026, according to a Dec. 9 report from ManpowerGroup.

While 40% intend to increase headcount during the first quarter, 40% will maintain current staffing levels and 16% expect to reduce their workforce.

Among those planning reductions, 29% pointed to economic challenges, 24% said market changes have reduced demand for some roles, and 22% reported reducing staff to meet current needs. In contrast, only 20% cited automation and artificial intelligence tools.

“What we’re seeing is employers responding to the economic signals with a measured and deliberate approach,” Jonas Prising, CEO and chair of ManpowerGroup, said in a statement.

“AI will be a powerful driver of productivity in the coming years, but today the economic climate is shaping hiring decisions,” Prising added. “Employers are prioritizing specific roles and capabilities needed to meet current demands.”

In a survey of more than 39,000 employers, ManpowerGroup’s Net Employment Outlook for the first quarter of 2026 increased slightly to 24%, down 4% year-over-year but up 4% from the previous quarter.

By size, large employers with more than 5,000 employees reported the weakest outlook at 21%, down 25% year over year and 9% quarter over quarter. Companies with 250-999 employees had the most confident hiring intentions, with an outlook of 28%.

By industry, employers in the public sector, health and social services, utilities and natural resources, and trade and logistics reported the most cautious hiring plans. On the other hand, those in finance and insurance, information, and construction and real estate had the most optimistic hiring plans.

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