AI skills have become the most challenging for employers to find, overtaking traditional engineering and IT abilities, as per a report by ManpowerGroup. In India, 82% of employers faced difficulty in finding skilled talent in 2026. The report highlighted that AI literacy and AI model development are among the most scarce skills, with talent pressure exceeding the global average of 72%.
India, along with countries like Slovakia, Greece, and Japan, is among the markets with the highest talent constraints globally. The research, involving 39,000 employers across 41 countries, showed a slight decrease in global hiring at 72% compared to 74% in 2025, attributed to intense competition for AI capabilities.
Employers are struggling to secure both advanced technical expertise and essential soft skills, leading to a widening structural skill mismatch in the job market. Sandeep Gulati, Managing Director of ManpowerGroup India, noted that India’s 82% talent shortage signifies a structural shift in the labor market rather than a temporary one.
Various strategies are being adopted by employers to address the talent shortage, including upskilling, reskilling, targeting new talent pools, offering flexible schedules, and providing location flexibility. Industries such as automotive, information & finance, professional services, construction, real estate, and tech services are experiencing the most significant talent strain.
