isolved: 28% of Employers Shifting to Contractors Amid Skills Gaps

NewsData.io · United States · Oct 14, 2026

isolved's 2026 HR Leaders Report, based on 1,005 U.S. HR decision makers, finds that 59% report workforce skills gaps (up from 48% in 2025) and 51% describe the situation as a talent crisis. Cost pressures are reshaping how organizations staff up: 34% are investing in AI/automation instead of hiring, 28% are increasing reliance on contractors or temp workers, and 26% are hiring only for select roles. Recruiting speed and candidate communication remain weak points, with 60% saying their recruiting strategies fall short on speed. For staffing firms, the growing shift toward contract and temporary workers signals increased client demand, while persistent recruiter-side inefficiencies underscore the value of faster, more transparent talent delivery.