Middle market companies still face workforce challenges, even with a cooling U.S. labor market. This is according to the RSM US Middle Market Business Index Special Report: Workforce 2026. RSM US LLP partnered with the U.S. Chamber of Commerce for this report. The survey found that 52% of executives expect moderate to significant hiring needs in the next year. This rises to 62% for firms earning $50 million to $1 billion in revenue. “The labor market has slowed down materially compared to previous years, though that slowdown is not the same for everybody,” said Tuan Nguyen, economist with RSM US LLP.
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“We are seeing that K-shaped economy evolving even more; you have bigger firms still in good shape, but smaller firms struggling a little bit more.” To address talent shortages, companies are increasing investments in AI and workforce upskilling, with 74% planning higher AI spending over the next two years. “As employers deal with all of these challenges, the ability to more precisely manage the workforce is becoming a bigger priority, and the tools to do that are becoming better,” said Chris Mueller, managing director of a human capital management practice at RSM.
