What to expect from the job market in 2026 | Experts’ Opinions

Everyone who was looking for a job in the aid sector in 2025 or is currently in the process of securing one knows just how hard it is to land a good position these days. The significant funding cuts in international development, along with the massive layoffs resulting in increased competition, the rise of artificial intelligence and the automation of tasks, the post-crisis restructurings, combined with other factors, are putting a tremendous pressure on the labor market and on those trying to find a position that aligns with their career ambitions – and not only in the development sector, but others as well. However, as it is said that an informed person is a strong person, understanding how the labor market may evolve this year is vital for every candidate, no matter their area of expertise. Check some experts’ opinions on this issue below.

DevelopmentAid: What major shifts are expected to define the global labor market in 2026, and which regions or sectors are likely to experience the most significant changes?

“Firstly, the expansion of the green economy – especially renewable energy, sustainable infrastructure and circular economy services – will create new employment opportunities but will require rapid skills adaptation. Secondly, digital health and AI will become permanent features of health systems, changing how work is organized and which competencies are valued, particularly in aging regions such as MERCOSUR (Southern Common Market – a major South American trade bloc comprising Argentina, Brazil, Paraguay, Uruguay, and Bolivia). Thirdly, hybrid and remote models will consolidate in knowledge-intensive sectors, reshaping employer–employee relationships. MERCOSUR and Latin America could more widely function as a demonstration region where demographic aging, climate transitions and digital transformation intersect.”

“The global labor market in 2026 will see an incredible shift from the fear of job losses to a surprising job redesign. AI is reshaping how we work, with opportunities in technology, green energy, and healthcare taking the front seat, while traditional sectors automate and indicate job redesign. The challenge is matching talent to these emerging roles. Some good news: we’re seeing innovative solutions emerge where they’re needed most. For instance, catastrophe bonds in climate-vulnerable economies signal a fundamental shift toward equity in global finance. After Hurricane Melissa in 2025, the people of Jamaica were devastated by the loss of lives and property, but the preparations made in anticipation of the worsening climate crisis might actually be the key to tightening the economic divide between itself and the traditional titans like the USA, Canada and the UK. These instruments acknowledge historical imbalances and create pathways for emerging markets to build resilience while narrowing the North-South divide. The sectoral evolution is clear. Human-centered work expands as routine tasks are automated. Children learn coding alongside traditional subjects, preparing for markets that will reward adaptability. The gap between change and our capacity to respond is closing. Learning systems, youth employment strategies, and climate-aware financial tools exist. Implementation is the frontier. So, 2026 marks the beginning of more adaptive, equitable labor markets if we act with expediency.”

“The global labor market is changing rapidly, mainly because of new technology. Automation and artificial intelligence are influencing how we work, what jobs are available, and the skills needed for those jobs. By 2026, North America will have a strong demand for technology-related jobs, especially in AI development, data analysis, software engineering, and cybersecurity. As automation increases, workers will need to learn new skills to remain relevant in their jobs. In Europe, digital changes, climate policies, and an aging population will affect job demand. These factors may worsen skills shortages, especially in digital services, healthcare, renewable energy, and advanced manufacturing. Eastern and Southeastern Asia will focus on reskilling their workforce to support older populations and boost productivity. The Asia-Pacific region, particularly China and India, will continue to see growth in IT services and tech-driven business processes. However, sub-Saharan Africa will face challenges such as skills mismatches, poor quality education, and high youth unemployment. In Latin America, the labor market will continue to adapt to changes caused by digitalization and climate transitions. By 2026, key growth sectors will include technology and digital services (such as AI, data science, and cybersecurity), healthcare services for aging populations, the green economy focused on renewable energy, and skilled trades and operations, driven by new investments in infrastructure and manufacturing.”

DevelopmentAid: How will rapid automation and AI adoption influence employment, skills demand, and the workforce in 2026?

“By 2026, automation will mainly reconfigure tasks and skill sets, especially in health and care sectors, rather than simply displacing jobs. Demand will grow for hybrid profiles that combine clinical, digital and governance competences across multigenerational teams. If AI deployments are explicitly linked to mental health and MHPSS (Mental Health and Psychosocial Support) objectives for frontline workers, they can strengthen resilience by supporting triage, workload management and the early detection of burnout. Conversely, if driven purely by productivity targets, AI risks exacerbating pressure, surveillance and inequities, particularly for older workers.”

“The data tells us that by 2030, roughly 28% of jobs in “developed economies” will be substantially different from what they are today (World Economic Forum, 2025), and we’re already seeing the early stages of this in 2026. But “substantially different” doesn’t mean “gone”. It means the nature of the work is evolving. AI is driving a significant divide in the workforce. On one side are knowledge workers who are adapting to collaborate with AI tools, while on the other side, individuals in traditional roles face substantial risks if they lack access to reskilling opportunities. This widening gap demands immediate attention. That said, it’s worth noting that reskilling has become more accessible, even for low-income individuals, thanks to broader internet availability. Despite this, a noticeable lack of adaptability persists within the workforce. The skills that matter are also shifting. Yes, STEM and digital literacy are crucial, but so are the distinctly human capabilities of leadership, adaptability, creative problem-solving, and emotional intelligence. These aren’t skills that AI can replicate, and they’re becoming more valuable, not less. And lastly, and perhaps most overlooked, is the demand of output per employee. AI has reduced the need for perfection, but increased the need for greater output. What was expected of a small team of maybe three or four, might now be expected of one person. Leadership teams will have to monitor and assess as they integrate AI plans.”

“The rise of automation and AI is changing job markets and creating new opportunities. Many routine tasks such as administrative support, data entry, and basic customer service are being automated. By 2026, there could be a significant reduction in entry-level white-collar jobs, such as basic writing, coding, and standardized services. However, this shift will also lead to new jobs that involve managing and working alongside AI systems. As automation grows, uniquely human skills will become more vital. Employers will value skills that machines cannot easily replicate, such as working with AI and technology, critical thinking, problem-solving, leadership, decision-making, and interpersonal skills like empathy, teamwork, and creativity. The strong demand for advanced technical skills seen in 2025 – like data science, cybersecurity, AI system design, and advanced coding – will likely continue into 2026. How well the workforce adapts will depend on proactive government actions. Governments and educational institutions must focus on reforming education, encouraging lifelong learning, and creating strong social safety nets for workers impacted by technological changes. Changes to taxes, labor laws, and social programs will be vital to ensuring smoother transitions and reducing inequality.”

DevelopmentAid: Which strategies should governments and the international community prioritize to address skills gaps, youth unemployment, and demographic imbalances in the 2026 labor market?

“I suggest that development partners and governments should prioritize integrated strategies that link climate finance, skills policy and digital governance. For 2026, this means using green finance and recovery packages to create structured pathways into decent green and digital jobs for young people, while supporting older workers through reskilling and better working conditions. Concretely, each major green or digital-health investment could include a mandatory component for training, apprenticeships and career ladders targeted at youth, women and underrepresented groups.”

“To address the challenges of the future, practical steps are essential, with four priorities standing out. Firstly, we must establish scalable lifelong learning systems. These programs need to be modular, valued by employers, and centered on critical skills such as digital competencies and “green economy” expertise. The traditional “one-time education for a 40-year career” model is obsolete. Secondly, tackling youth unemployment requires evidence-based, targeted strategies. Initiatives like Canada’s Youth Employment and Skills Strategy demonstrate success by combining wage subsidies, apprenticeships, and effective career guidance. These approaches are straightforward but must be implemented systematically and on a large scale. Thirdly, demographic shifts demand smarter policies, including ethical migration strategies to support aging populations, extending working lives where feasible, and enhancing job quality in undervalued sectors such as care work and platform employment. Lastly, governance frameworks for AI must prioritize workers, ensuring transparency in its use for hiring and management while reimagining social protection to enable benefit portability as workers transition across jobs and sectors. Ultimately, the focus should shift from protecting specific jobs to empowering individuals to adapt, transition, and acquire new skills throughout their careers. The true challenge for the future lies in equipping people to navigate change effectively, not resist it.”

“To address skills gaps, high youth unemployment, and demographic challenges, governments and development partners need to develop transparent, inclusive job strategies. Firstly, we must update education and training to meet job requirements. This means focusing on digital skills, green jobs, technical training, and soft skills like communication and teamwork. Providing quality vocational education and STEM training will be vital to closing skills gaps and preparing young people for new job opportunities. Secondly, governments should invest in systems that track skill demand in real-time. This will help schools and policymakers to adjust their programs as needed. Promoting lifelong learning is also essential. Ongoing training will help workers to keep up with changing technologies and market needs. We should prioritize incentives for both employers and individuals to support continuous learning. Lastly, we should encourage hiring that is based on skills rather than just the possession of a degree. This approach can open more job opportunities for young people, especially those with vocational training or apprenticeships. By aligning education with employers’ needs, promoting fair labor policies, and investing in continuous learning, governments can lower unemployment, make the workforce more adaptable, and ensure fair participation in the job market in 2026.”

See also: What are the world economy growth predictions for 2026? | Experts’ Opinions

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