WEC: Labour Market Intelligence Insights 2Q2026
How is the global labor market changing in 2026? Read the summary of the WEC report on recruitment, agency work, and flexible forms of employment.
The World Employment Confederation (WEC) has published its Labour Market Intelligence Insights (LMI) report for Q2 2026. This is a quarterly data publication tracking economic conditions, recruitment trends, and activity in the temporary and agency work sector across more than 40 countries worldwide.
The Q2 2026 report is released at a time of growing complexity in global labour markets. Geopolitical tensions, and in particular the ongoing conflict in the Middle East, are leading to higher energy prices and renewed inflationary pressures. This contributes to a lowering of global GDP growth forecasts for 2026 from 3.4% to 2.6% (according to IMF and OECD data).
Labour markets in a rebalancing phase
Despite a decline in job vacancies in most developed economies, the demand for workers remains structurally resilient. Unfilled positions are starting to bottom out in several markets, with early signs of recovery visible in the United States, Finland, Portugal, and Switzerland. Conversely, in Germany and Austria, recruitment activity remains subdued despite modest GDP growth. This indicates a delayed translation of economic recovery into labour demand, which is a recurring theme in this edition of the report.
At the sectoral level, recruitment in services is proving more resilient than in cyclical industries. The administrative and support services sector, as well as healthcare and social work, are seeing a renewed increase in demand for workers in the EU, while manufacturing and financial services remain weak.
Temporary agency work: a gradual but fragile recovery
Agency work data provided by WEC members points to a continuation of an uneven recovery. In Q1 2026, Canada recorded a 7.4% year-on-year increase in hours worked by agency workers, Chile 6.4%, and the US 3.7%. Europe as a whole recorded a modest growth of 1.2%, which, however, masks significant differences between individual countries: Spain and Denmark show positive dynamics, while the Netherlands, Ireland, and parts of Western Europe still remain in negative territory.
The number of online agency job postings increased by 10% globally in Q1 2026, with Asia recording the strongest expansion (+179%), driven by both real market activity and better data coverage in APAC countries.
Strategic implications for the industry
The Q2 2026 report introduces a new business impact framework, offering recruitment and agency work firms direct takeaways in three dimensions: strategic positioning, business model adjustment, and service evolution. Key takeaways include:
the growing importance of flexible forms of employment at a time when clients are postponing decisions on permanent recruitment,
the increasing role of multi-country operating models,
the opportunity to position employment agencies as key intermediaries in the labour market, rather than just transactional providers.
Self-employment is also growing worldwide – driven by the growth of platform work, the post-pandemic reconfiguration of the labour market, and a mix of striving for flexibility and seeking better workplace quality. This creates both competitive pressure and new opportunities for the industry to provide services in the area of Employer of Record solutions and compliance.
The WEC Labour Market Intelligence Insights report is published quarterly and is based on data from WEC members, Eurostat, IMF, OECD, Lightcast, and other reliable sources.
