The latest labor market review paints a complicated picture for organizations. Hiring fell sharply in February, with unemployment ticking up, but some skill sets remain in short supply. These economic shifts put pressure on L&D (learning and development) executives to deliver even more value. SHRM recently published the Q1 2026 Labor Demand Review, diving into the data that captures what organizations face at the moment. From this review, there are three key insights for L&D executives to help navigate a labor market that is cooling down, but with notable hot spots persisting, particularly in health care.
Prioritize Training in AI and Machine Learning Skills
With demand for AI and machine learning skills growing substantially (125% of 2022 levels), L&D executives should integrate AI and machine learning training into their programs, while continuing to prioritize developing human skills like critical thinking. Upskillingemployees in these areas, while maintaining an emphasis on soft skills, can help organizations stay competitive and reduce reliance on external hiring for these in-demand skills.
Health Care L&D Remains Key
The persistent demand for health care skills, driven by long-term trends like population aging, highlights the need for continued investment in L&D within the health care sector. This focus can help balance the investment in recruitment through competitive compensation packages by building up the current workforce where it makes sense. The demand for health care skills is likely to continue for the foreseeable future as demand for health care workers also persists.
Adapt Strategies for Roles Impacted by Automation
Declining demand for skills in areas like coding, data management, and office support suggests that automation and AI are reshaping these roles. L&D executives should focus on reskilling employees in these fields, helping them transition into roles that leverageemerging technologies or require uniquely human capabilities, such as creativity, critical thinking, and emotional intelligence.
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