5 workforce trends every hiring leader needs to know in 2026

1. Half the talent pool is unemployed and highly motivated

Job security has been declining for years. In 2023, 60% of PowerToFly survey respondents said they felt confident in their job security. By 2025, that number had fallen to 37%. In 2026, the pressure hasn't eased. Half of this year's respondents are currently unemployed.

Those stats alone are surprising, but there’s more value in the nuance: this is not a passive talent pool sitting on the sidelines. Among employed respondents, 21% are actively looking to leave. Another 8% are staying put only because the market isn't offering them a better option. Fewer than 10% say they're thriving and growing where they are.

The talent market in 2026 is stressed, motivated, and paying close attention to which employers are worth their time. That's both a challenge and a real opportunity for organizations that show up with a credible offer.

2. Only 6% of employed workers are focused on staying put

Here's a retention crisis hiding in plain sight: finding a new role at a new company is the number one career focus for 2026. Making a career pivot comes in second. Advancing within their current company ranks dead last, with just 6% of respondents naming it as their primary focus.

Read that again.

In past years, career advancement within a company was a meaningful driver of retention. In 2026, talent has largely stopped looking for it there.

The professionals most likely to leave are also the ones actively investing in their own marketability — upskilling, pivoting, building credentials. Holding on to them requires more than competitive pay. It requires giving them a visible reason to stop looking.

3. Values alignment has dropped, but inclusion still matters

In 2025, values alignment ranked second among reasons talent would leave a job, with 93% of respondents saying they'd leave their current role for work that better reflected their personal values. In 2026, mission-driven work ranks near the bottom, with just 8% of respondents selecting it as a key employer attribute.

That's a significant shift. But the right read here isn't that values stopped mattering. Talent is operating in survival mode. When job security is shaky and half the respondent pool is unemployed, people lead with stability priorities before purpose.

At the same time, the data makes something else clear: 85% of respondents say employer commitment to inclusion and belonging is extremely or very important to them. That number has held steady even as corporate rollbacks of formal DEI programs have accelerated. The rollback hasn't changed what talent wants from the workplace. If anything, the data suggests it's deepened skepticism about whether employers will actually follow through.

Employers who maintain a consistent, substantive commitment to inclusion — even without formal acronyms or policy statements — are likely better positioned than those who made loud promises they're now walking back.

4. Talent is upskilling to survive, not to advance

In 2025, 91% of respondents said upskilling was a must-have priority. The framing then was growth: learn more to get ahead. In 2026, the framing has shifted. Upskilling to protect future employability ranks third among primary career focuses — not to grow, not to get promoted, but to stay relevant.

The skill areas driving that urgency: AI and automation skills tied with technical, role-specific skills at the top of what respondents believe will have the biggest impact on their career success this year. Leadership and people skills ranked last.

Professionals are increasingly optimizing for what they think the market rewards and the message they're getting, fairly or not, is that people skills are secondary. PowerToFly's data tells a different story: communication, adaptability, and collaboration don't become less important in an AI-augmented workplace. They become more important, precisely because the technical work gets easier to automate.

If your employer brand isn't communicating that clearly, talent will keep skewing their development toward hard skills and potentially arrive underprepared for the human judgment your roles actually require.

Flexibility is non-negotiable

Flexible or remote work options topped this year's list of what talent looks for in an employer, selected by 67% of respondents. Competitive pay came second at 47%, and job stability third at 42%.

This isn't new. Flexibility has ranked at or near the top of this list for three years running. And yet organizations still treating it as a case-by-case accommodation, a perk to be negotiated, or a temporary policy are losing candidates before the conversation even starts.

In 2025, 92% of respondents said they'd quit their job for one with more flexible hours. The 2026 data reinforces the same message. Employers who haven't made flexibility structural — built into roles, not granted situationally — are facing a significant recruiting disadvantage, especially with the women and caregivers who make up a significant share of PowerToFly's respondent pool.

What the data means for your hiring strategy

These five workforce trends point toward four things hiring leaders can do differently right now.

Make flexibility a default, not a discussion. Build it into how roles are designed and how they're described, starting with the job posting.

Get specific about AI. Talent wants to know what AI skills you're actually hiring for and how you're supporting employees through the transition. Vague commitments to "digital transformation" won't cut it. Clarity is a competitive advantage.

Keep investing in inclusion and belonging, even quietly. Eighty-five percent of respondents say it matters deeply to them. Consistent, specific action carries more weight than policy statements in either direction.

Show career paths, not just job descriptions. With only 6% of employed workers focused on advancing where they are, visible growth opportunities give talent a reason to stop looking elsewhere. Communicate them early in the hiring process.

Frequently asked questions about workforce trends in 2026

What are the biggest workforce trends in 2026?

Based on PowerToFly's What Talent Wants 2026 survey of 245 professionals, the top trends include declining job security confidence, low internal retention ambition (only 6% focused on advancing at their current company), a shift away from values-based employer selection toward survival priorities, growing AI anxiety driving defensive upskilling, and flexible work remaining the top employer attribute for the third consecutive year.

Why is talent leaving their current jobs at higher rates?

The 2026 data shows that 21% of employed respondents are actively looking to leave, with another 8% staying only because the market isn't offering better options. Fewer than 10% describe themselves as thriving and growing. The primary driver: talent doesn't see a path forward where they are. Career advancement within current companies ranks dead last as a 2026 career focus.

How has AI changed what employees want from employers?

AI has shifted upskilling from a growth activity to a defensive one. Talent is investing in AI and automation skills primarily to stay employable, not to advance. They also want employers to communicate clearly about which AI skills they're hiring for and how roles will change. Transparency about AI integration is increasingly part of what makes an employer worth choosing.

Do employees still care about DEI and inclusion in 2026?

Yes. Despite widespread corporate rollbacks of formal DEI programs, 85% of respondents say employer commitment to inclusion and belonging is extremely or very important. What has changed is trust: the rollback has deepened skepticism about follow-through. Employers who sustain consistent, substantive inclusion practices — even without formal labels — are better positioned with this talent pool.

What do job seekers prioritize most when choosing an employer in 2026?

The top five employer attributes, according to the What Talent Wants 2026 report: flexible or remote work (67%), competitive pay (47%), job stability (42%), clear career growth paths (36%), and learning and upskilling opportunities (23%). Mission-driven work and ethical AI use ranked near the bottom, reflecting a talent pool in survival mode rather than purpose-seeking mode.

The full report includes year-over-year comparisons, additional data on the AI factor in hiring, and detailed employer recommendations. Download the What Talent Wants 2026 report for the complete picture