The World Employment Confederation has released its Labour Market Intelligence Insights for Q1 2026, offering a fresh look at how labour markets are evolving worldwide. This quarter’s edition helps readers understand the broader forces shaping talent demand, workforce dynamics and the economic signals that matter for employers, workers and policymakers.
Published on 27th February 2026
Economic conditions: stabilisation with persistent headwinds
Economic activity across world regions continues to moderate under the influence of past monetary tightening. While GDP growth remains subdued in Europe, early signs of recovery are emerging. North America and Asia maintain comparatively stronger performance, supported by easing inflation pressures. However, high borrowing costs and ongoing uncertainty continue to weigh on business confidence, reflected in the continued downward drift of job vacancy rates throughout 2025.
Labour markets cool, but structural shortages persist
Despite weakening labour demand, unfilled job vacancies remain elevated worldwide. Skills mismatches, demographic ageing and shifting worker preferences sustain structural scarcity—particularly in technology, healthcare, green industries and advanced services.
Agency work: Early yet uneven recovery
The private employment services sector shows initial but fragile signs of recovery:
Online job postings for agency work grew sharply in Asia, South America and Oceania, while Europe and Africa remain subdued.
Hiring trends and skills demand: A shift toward high‑skill roles
Outlook for 2026
With global GDP projected to grow 3.3% in 2026, the forecast points to steady but modest expansion, supported by high-tech sectors, even as geopolitical and financial risks persist. The Q1 2026 insights underline the necessity for agile workforce solutions, sustained skills development, and robust cooperation between labour market stakeholders to ensure smoother economic recovery.
