Marvin OnumonuManpowerGroup’s 2026 Talent Shortage Survey found that only 10% of employers are using artificial intelligence (AI) and automation to replace headcount.
AI was identified as the skill organisations found hardest to recruit for, with 19% struggling to find people confident using AI to support their roles.
The survey also found the skills gap declined for the second year, falling from 76% in 2025 to 73% in 2026.
Michael Stull, managing director at ManpowerGroup UK, said: “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.”
Stull added: “That is why we are seeing increasing demand for these skills, as people and AI need to work in tandem.
“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.”
He said: “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.”
Organisations are prioritising upskilling and reskilling their current workforce, with 33% focusing on training existing employees.
AI and automation (10%) and outsourcing externally (9%) ranked low as solutions.
Public sector, health and social care had the highest upskilling rate at 37%, but 77% of organisations in these fields still reported talent shortages, 4 percentage points higher than the global average.
The automotive sector reported the greatest shortage, with 92% of businesses struggling to find skilled staff.
Engineering was the hardest skill to recruit for at 46%, followed by manufacturing and production at 25%.
Shortages were most severe in Yorkshire & Humber, at 15%.
