The big picture: Even as the broader U.S. labor market cools, the challenge of finding the right talent remains acute for the middle market.

The survey found 84% of executives with hiring needs expect filling open positions to be challenging, a substantial jump from 66% in late 2023.
This reflects a split in the economy, where larger firms are managing well while smaller ones face greater struggles, according to RSM economist Tuan Nguyen.

By the numbers: The data points to a clear trend toward tech investment as a solution to labor pressures.

74% of respondents expect to increase spending on AI over the next two years.
62% plan to invest in new skills training for current employees in response to staffing challenges.
61% are investing directly in AI to address these challenges.
52% of all executives surveyed expect moderate to significant hiring needs in the next 12 months.

Zoom in: Beyond AI, companies are exploring other avenues to manage workforce demands.

Outsourcing is a key strategy, with IT, customer service, and payroll being the top functions firms are considering sending to third-party providers.
Workplace policies are also in flux, with 31% of firms now mandating a return to the office, while 44% are not currently pursuing such a requirement.

What they're saying: The push for tech adoption needs to be paired with workforce development, according to Stephanie Ferguson Melhorn, an executive director at the U.S. Chamber of Commerce.

"The nation's workforce development programs should align with tools like AI and automation as these technologies continue to transform the modern workplace," Melhorn said.
She emphasized pairing "innovation with skills training and credentialing opportunities so employees can shape how these technologies serve them."

The RSM US Middle Market Business Index Special Report: Workforce 2026 can be viewed here.

SURVEY: Middle Market Bets on AI, Training to Tackle Labor Shortage

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