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What NC Employers Need: Hiring, Credentials, and the Road Ahead

In the 2026 NC Employer Needs Survey, hiring difficulty eased to its lowest recorded level, experience continues to outrank formal credentials, and fewer than half of employers offer any work-based learning. AI use remains limited today, but employers expect human-centered skills — not technical ones — to matter most in the years ahead.

NC Department of Commerce, Labor & Economic Analysis Division (LEAD) • NCWorks Commission • 2026 Employer Needs Survey • Overall sample

Hiring difficulty eased dramatically to the lowest recorded through this survey.

Only one in three reported any difficulty filling entry-level positions, a historic low.

83%
tried to hire
of all respondents
80%
attempted entry-level hiring
of those who tried
33%
had difficulty filling roles
of those who attempted — lowest share recorded
Hiring Difficulty for Entry-Level Positions Over Time
% of employers reporting hiring difficulties with entry-level positions in the previous 12 months
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission).
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A low number of applicants and employability issues cited as the top reasons for hiring difficulty.

For employers that reported difficulties in entry-level hiring, the most common challenges were a limited number of applicants and a perceived lack of “employability” skills – such as a strong work ethic, professionalism, reliability, and motivation – among those who applied.

Factors Contributing to Entry-Level Hiring Difficulties
% of employers who reported difficulty — respondents could select all that apply
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q7: “Which of the following factors contributed to your entry-level hiring difficulties?”
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Demonstrated skills and work experience are more valued in hiring than degrees and certifications.

When asked about the importance of various credentials to their entry-level hiring decisions, over half of hiring employers noted work experience and demonstrated skills were “important” or “very important.” This ranked above industry certifications, professional licenses, and four-year degrees.

Credential Importance for Entry-Level Hiring
% rating as important or very important
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q5: “When hiring entry-level workers, how important are these credentials?”
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Fewer than half of employers use work-based learning.

Slightly less than half of employers participated in any type of work-based learning activity. Internships and job shadowing were most common, followed by career activities with schools and apprenticeships/pre-apprenticeships.

Work-Based Learning Opportunities Offered
49%
at least one work-based learning activity
Internships
31%
Job shadowing
27%
Career activities with schools
18%
Apprenticeships/pre-apprenticeships
12%
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q9: “Does your business provide work-based learning opportunities in any of the following areas?”
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Just one in three employers use AI — with little effect on jobs so far.

Around one third of employers currently use Artificial Intelligence (AI) or AI-incorporated technologies. Two in five employers expect to start or expand AI use in the next two years.

30%
currently use AI
43%
plan to start or expand AI use

Nearly all employers currently using AI said there had been no changes to their total employment in the past year due to AI. As for future hiring impacts, three-quarters of employers expected no changes, and smaller percentages anticipated fewer entry-level workers and more experienced-level workers.

Expected AI Impact on Worker Demand, by Skill Level
Among employers currently using AI · net = percentage-point gap between those expecting an increase and those expecting a decrease
← more expect decrease  |  more expect increase →
Experienced/highly-skilled
+13 pp
75% no change
Mid-level
-2 pp
74% no change
Entry-level/lower-skilled
-10 pp
73% no change
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q16: “How do you expect AI to affect your demand for workers at each of the following levels?”
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Employers project human-centered skills to grow in value due to AI.

Employers consistently felt that communication, problem-solving, critical thinking, and creativity and innovation would become more important in the future compared to today. They also felt that programming and coding skills would become less important.

Future Skill Importance
All employers · net = percentage-point gap between those saying more important and those saying less important
← more expect decrease  |  more expect increase →
Communication/interpersonal
+60 pp
32% no change
Problem-solving/critical thinking
+55 pp
34% no change
Creativity and innovation
+42 pp
42% no change
AI and digital literacy
+20 pp
43% no change
Data analysis
+9 pp
52% no change
Programming/coding
-5 pp
58% no change
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q19: “How important do you think the following skills will be to your workforce in the future compared to today?”
↑ Back to Key Findings

Explore the Full Data

| Download the full report (PDF) | Visit the LEAD website

Methodology & Technical Notes

Since our first survey in 2014, LEAD has carried out a biennial statewide survey of businesses on behalf of the NCWorks Commission to better understand and respond to employers’ experiences on a range of topics including hiring and hiring difficulties, recruitment and retention, training, and other topics of interest to the Commission. The 2026 version of the Employer Needs Survey also aimed to support the goals of the Governor’s Council on Workforce and Apprenticeship, including increasing participation in work-based learning, integrating artificial intelligence (AI) into sector-based strategies and creating workforce development strategies for three key industries—manufacturing, education, and health care.

While the original 2014 survey emerged out of concerns about “skills gaps” on the part of jobseekers, employers responses have led us to focus more on potential mismatches within the labor market. The low number of job applicants and the lack of foundational employability characteristics in those who do apply have consistently outweighed technical skills, hard skills, and educational credentials. For this reason, we have focused on hiring attempts and hiring difficulties and sought to explore potential causes for these missed opportunities to make good matches between the two groups. These challenges could be about specific characteristics of jobseekers, employers, or factors outside the control of either group—from labor shortages (not enough workers in general), geographic mismatches (distance between jobseekers and employers is too great), occupational mismatches (the wrong type of workers for employers’ needs), or characteristics of the workplace or industry that may not appeal to jobseekers. In addition, inefficiencies in recruiting practices or a lack of competitive wages and benefits could also prevent efficient matches.

LEAD designed the 2026 survey and contracted with NC State University’s Center for Urban Affairs and Community Services to conduct phone interviews beginning in November of 2025 through February of 2026. As in previous versions, this was a statewide survey of establishments with at least 10 employees and included four samples: 1) an Overall sample of employers from all industries drawn to be representative of the state’s industrial mix; 2) a Manufacturing sample; 3) a Health Care and Social Assistance sample (minus Child Care), and 4) an Education and Child Care sample. Each sample was weighted by industrial mix and size class in order to make them representative of the state’s employers. One change from previous versions of the survey was to combine Child Care employers with other Education employers in order to better capture their experiences. Each sample received over 400 responses, providing enough cases to produce statistically representative statements about the larger population of employers.