The 2026 labor market is unlike any other. While unemployment remains relatively low and business growth continues in many sectors, hiring managers are facing new and persistent challenges that include skills shortages in key areas, AI-driven application overloads and evolving employee expectations about flexibility. Understanding these trends is key to building hiring strategies that work in today’s complex environment.

Skills Shortages & Qualified Talent Shortfalls

One of the most pressing concerns talent leaders are bringing up in our conversations is simply finding candidates with the right skills.  A recent national survey found that over 40% of companies rank this among their biggest concerns in 2026, with many pointing to a lack of relevant experience or technical training among applicants.

Why it matters:
For roles that require specialized capabilities, such as finance, analytics, or strategic project management, the candidate pool has not kept pace with demand. This is especially acute in fast-growing metros like Charlotte, where competitive industries like banking, healthcare, and professional services vie for the same skilled talent.

Sherpa Perspective:

“We’ve seen firsthand that today’s hiring hurdle isn’t just about volume; it’s about capability. Our partners benefit when we prioritize candidates with proven skill sets and potential for growth, even when standard resumes don’t tell the full story,” said Lisa Hildreth, Sherpa Managing Director.  She continued, “We take pride in getting to know our client’s needs, from both a skill and a culture-fit perspective.  If we see candidates who are a match for a particular client, we see it as our duty to let our client know – even if they may not have a current role for them. It’s about being proactive so they don’t miss out on great talent.”

AI Is Transforming Hiring – for Better and Worse

AI is no longer just a buzzword in HR, it’s part of the daily workflow. Our industry is increasingly using AI to automate tasks like resume screening and scheduling, but that brings its own challenges.

Hiring teams now report:

• A surge in AI-generated or irrelevant applications that still hit applicant tracking systems
• Difficulty distinguishing between automated submissions and genuine candidate intent
• Need for human oversight to ensure quality hiring decisions

Sherpa Perspective:

According to Keith Neus, Sherpa Managing Director, “AI can be a powerful assistant, but technology without strategy creates noise. Our approach blends AI toos with expert human insight, presenting clients with candidates who are more than just a keyword match.  Using AI as a tool to enhance efficiency is great, but it can’t and won’t replace the human element Sherpa’s clients have come to value in our 25 year history.”

The Flexibility Factor: Hybrid & Remote Work Expectations

In case you haven’t heard it on repeat: Candidate expectations around flexible work aren’t going away. Data shows that hybrid and remote roles attract more interest and higher-quality talent pools than rigid, on-site jobs.

For hiring managers, this means:

• Flexibility can be a competitive advantage in attracting top candidates
• Strict return-to-office policies may unintentionally limit talent access

Sherpa Perspective:

According to Hildreth, “Our clients who embrace flexible work options often see stronger candidate engagement. Aligning workplace policies with what professionals actually want – like hybrid schedules – makes it easier to both attract and retain top talent.  That said, with more and more companies reeling in WFH arrangements, it’ll be interesting to see where this goes in 2026.”

Conclusion

There’s no denying that the 2026 hiring landscape presents complex challenges for professional organizations, but every challenge also brings opportunity. By focusing on skills-based strategies, leveraging AI thoughtfully, and adapting to workforce expectations, companies can thrive even in competitive markets like Charlotte and beyond.  Are you ready to meet these challenges and whatever else 2026 throws at you from a hiring perspective – let’s connect and find out!