May is National Small Business Month, and new research from talent solutions and business consulting firm Robert Half shows many small business leaders are optimistic about the year ahead, even as hiring grows more complex amid widening skills gaps and evolving technology.
A survey of more than 250 U.S. small business leaders (fewer than 100 employees) shows that 76% are confident about their company’s hiring outlook for the year ahead. Yet 47% say finding skilled talent is more difficult than one year ago, and only 12% say they have the talent needed to complete high-priority projects.
AI adoption and skills gaps intensify hiring challenges
Over the next 2 years, 41% of small business leaders expect a net increase in jobs at their organizations amid the rise of AI. At the same time, more than half (56%) report significant skills gaps on their teams, and 58% say those gaps have increased over the past year.
“Widening skills gaps are making it harder for small businesses to successfully compete and grow,” said Dawn Fay, operational president of Robert Half. “Organizations that adapt their hiring strategies, invest in upskilling and leverage specialized expertise are better positioned to compete in today’s business landscape.”
How have AI-generated candidate materials complicated hiring?
The rapid adoption of AI tools among job seekers is introducing new hiring challenges. More than half of small business leaders (54%) say AI-generated applications have made hiring more difficult, primarily due to an influx of homogeneous applications that are difficult to authenticate.
As a result, many small businesses are seeking support from external partners, and 56% are more likely to work with a staffing firm due to AI-related hiring challenges. Of those, 84% report that those partners have been effective in addressing these obstacles—particularly by validating candidate information and identifying specialized talent for critical roles.
“Many small businesses don’t have the resources to manage the surge in applications that can be difficult to authenticate,” Fay added. “While AI has made job searching more efficient, it has also increased the need for trusted human experts who can validate skills and deliver specialized candidates.”
Small businesses drive hiring demand
Despite these challenges, small businesses remain a key source of job openings in the U.S. Robert Half data from Q1 2026 shows that among companies with fewer than 600 employees, the smallest organizations account for the largest share of job openings across 5 professional fields—led by legal (66%), administrative and customer support (64%) and marketing and creative (63%).
Robert Half’s Staffing for Small Businesses offers additional insights for navigating today’s hiring environment.
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