Life Sciences Face Talent, AI Gaps in 2026: ManpowerGroup

Healthcare and life sciences employers are entering 2026 with cautious optimism, but persistent talent shortages, rising costs, and uneven adoption of AI continue to shape workforce decisions, according to ManpowerGroup’s Healthcare and Life Sciences World of Work Outlook 2026.

The report finds that 77% of employers in the sector worldwide are struggling to find the skilled talent they need, making healthcare and life sciences the industry most affected by labor scarcity. Demand for services continues to grow, driven by aging populations, higher rates of chronic disease, and advances in medical technology, while the global workforce pipeline remains constrained. The World Health Organization (WHO) estimates the world could face a shortage of 11 million healthcare workers by 2030, underscoring the scale of the challenge.

AI is emerging as a central force in reshaping operations and productivity, but its use remains uneven. Sixty percent of life sciences executives say they plan to increase generative AI investments across their value chains, reflecting growing confidence in its role in diagnostics, drug discovery, and remote monitoring. However, only 19% of healthcare and life sciences employers say they are fully leveraging AI in their hiring processes, highlighting a gap between investment intent and execution. Employers report that ethical judgment, patient service, and communication skills remain among the hardest capabilities to automate, reinforcing the continued importance of human-centered roles.

Cost pressures are also influencing workforce strategies. More than 80% of pharmaceutical R&D leaders expect supplier spending to rise between 10% and 30% over the next two to five years, while 65% of employers say global trade uncertainty is having a moderate or significant impact on hiring decisions. As a result, many organizations are adopting a cautious approach to staffing. In late 2025, 46% of employers planned to keep headcount flat, while 16% anticipated workforce reductions, focusing hiring on either highly specialized or frontline roles.

M&A remain another factor shaping employment planning. Although global life sciences M&A activity slowed in 2025, with deal values falling to their lowest levels since early 2023, analysts expect a rebound in 2026. Goldman Sachs forecasts 15% growth in M&A across industries, with biopharma accounting for a large share of potential targets. For employers, this trend heightens the need for workforce integration planning, as cultural clashes and talent loss are cited as key contributors to failed mergers.

At the same time, companies are reassessing supply chains and production footprints. Efforts to localize manufacturing and reduce reliance on overseas suppliers are accelerating, particularly for active pharmaceutical ingredients. In the European Union, more than 80% of these ingredients are currently sourced from China and India, prompting policy responses such as the proposed Critical Medicines Act. Large-scale investments, including new manufacturing facilities in the United States, are expected to create demand for new skills in production, logistics, and quality management.

The outlook also highlights mounting pressure on R&D teams as the pharmaceutical industry approaches a US$236 billion patent cliff between 2025 and 2030. Nearly 70 drugs are expected to lose exclusivity, pushing companies to rethink R&D strategies and accelerate innovation while managing costs and talent constraints. More than half of biopharma executives say they need to revisit their R&D and product development approaches within the next year.

According to ManpowerGroup, addressing these challenges will require a combination of AI upskilling, retention of experienced workers, broader global talent sourcing, and more integrated approaches to managing permanent and contingent staff. As healthcare and life sciences employers navigate 2026, workforce strategy is emerging as a central determinant of competitiveness and resilience in a sector under sustained pressure.