7 Workforce Trends in 2025 and Beyond: What Employers Need to Know

Posted by Laura Amendola on April 25, 2025

The workforce landscape is constantly evolving. It’s important for businesses to stay ahead of workforce trends for hiring, retention, and business growth in order to maintain and increase success in the coming years. Some of the key factors that continue to drive change in the workforce are the rise of AI, generational shifts, economic changes, and workplace expectations. Take a dive into some current and future workforce trends in this blog post.

1. The rise of AI and automation in the workplace

It’s no secret that the use of AI is on the rise. For better or worse, this technological advancement is finding a place in most industries. Depending on the industry, automation and robotics are also being used more prominently. This increase can have a big impact on several roles, with automation potentially replacing repetitive tasks but also potentially creating new tech-driven jobs. A need is emerging to upskill and even reskill current employees to adapt to AI integration in the workplace.

2. The evolution of hybrid and remote work models

In a post pandemic world, remote and hybrid work models are still in demand. Employees value the flexibility these models can offer, especially those with families struggling with childcare. While many companies are pushing for a return to full in-office work, the talent pool is hesitant to give up remote work entirely. Hybrid structures can be a good compromise in these situations.

The evolution of hybrid and remote work models can have an impact on company culture, productivity, and collaboration tools, both positively and negatively. Employee appreciation and rewards require more creativity in a remote work structure than a pizza party. This also goes for communication and collaboration tools, which will be more technology heavy in a hybrid setting. Concerns surrounding productivity in a remote model can be easily calmed by measuring necessary metrics and comparing them to in office days. Your company can also set up clear hybrid and remote work policies to help ensure flexibility as well as productivity.

3. Skills-based hiring and workforce development

Many companies are shifting from degree-based hiring to skills-first recruitment strategies, opening the door for more candidates to obtain employment. According to the U.S. Chamber of Commerce Foundation, “Emphasizing a skills-based approach to hiring and advancement can broaden talent pools and create more meaningful career opportunities for workers by removing barriers like more access to talent for employers, and improving the ability for job seekers to better highlight their full skillsets.” The role of micro-credentials and certifications is growing in workforce training as well.

Companies can partner with training programs to help employees earn these credentials and certifications to benefit them as well as their workers. Continuous learning and opportunities for advancement are more important to the workforce talent pool now than ever before. In fact, 94% of employees say they would stick with their current employer if they invested in their careers, showcasing how much value workers today place on it.

4. Generational shifts and their workplace impact

With much of the workforce now made up of Millennials and Gen Z, workplace expectations are changing. Things like flexibility, career development, and DEI (diversity, equity, and inclusion) initiatives are of more value and are even expected in the workplace. Flexibility doesn’t just include remote or hybrid work, but schedules as well. Outcome-based performance is preferable to many Millennial and Gen Z employees instead of rigid hours.

When it comes to DEI initiatives, the value and importance employees place on them remains the same despite national shifts away from these policies. Purpose-driven work, representation, and mental health support are all often at the forefront of candidates minds when applying and interviewing at a new company. Here are some ways employers can support these generational workplace expectations:

Offer flexible work arrangements
Prioritize career development and upskilling
Strengthen DEI and company culture
Invest in well-being programs
Build a strong employer brand

5. Economic and labor market uncertainty

Economic fluctuations can impact hiring trends and job stability. Some examples include inflation, supply chain disruptions, geopolitical tensions, and technological disruptions. Economic downturns could lead to layoffs, which can increase competition for available jobs. According to Reuters, the unemployment rate rose from 4.0 to 4.1 in January of this year.

Some strategies for businesses to build resilient workforces in uncertain times include:

Invest in workforce upskilling and reskilling
Adopt agile workforce planning
Focus on employee retention and engagement
Diversify revenue streams and business models
Leverage AI and automation for efficiency

Some alternatives to traditional employment are becoming more popular in the face of uncertainty. Gigs like freelance, contract, or project-based work are being opted for by those looking for more control over their employment. Fractional work, which is when employees split their time across multiple employers, is also increasing. Professionals are often building portfolio careers as a result.

6. The growing importance of employee well-being and mental health

The importance of mental health and self-care are not diminishing. Employees therefore place more value on well-being initiatives at work than old workplace perks. This is especially important when expected increases in insurance costs are on employee and employer minds alike. In fact, according to Curalinc, health insurance costs are expected to rise 5.8% in 2025. This is worrisome when more emphasis is being put on preventative and proactive mental health support as opposed to reactive mental health support.

Employees are now looking for their companies to offer mental health programs, burnout prevention, one-on-one support, and are placing a higher value on work-life balance. To achieve this, companies can consider partnering with mental health resources and increasing training for managers who are the first people employees come to with concerns. They can also encourage employees to take advantage of all offered benefits and work to communicate what kinds of benefits they offer clearly and regularly.

7. The impact of globalization and talent mobility

The shift to remote hiring models comes with some perks, like casting a wider net into a global talent pool. This of course brings both benefits and challenges. Some benefits include:

Access to high-demand skill sets
Scalability and flexibility
Stronger global presence

Challenges include:

Legal and compliance complexities
Cultural and communication barriers
Cybersecurity and data protection risks
Employee engagement and retention

After most companies were forced to make a remote work model work in 2020, many learned leveraging technology was key. This also works well for a distributed workforce. Using virtual communication and productivity tools can help your organization stay connected and on top of goals while apart. AI powered tools can aid in hiring and performance management as well to help keep onboarding and functions running smoothly. To promote company culture, there are a variety of virtual team building activities and events like video happy hours, spirit week, and even contests to keep team members engaged.

Preparing for the future: actionable steps for employers

Employee needs should be important to any company, so emphasizing adaptability through the uncertainty the economy is facing can be incredibly beneficial. If flexibility, career advancement, and DEI initiatives are valued by the current workforce, companies should take steps to meet these needs. Organizations can invest more in employee training and professional development to show workers their futures within the company are important. Offering hybrid and remote work structures and less rigid schedules can create the flexibility employees crave. Lastly, continuing to support DEI efforts can be instrumental in fostering a fair and inclusive work environment.

Keep up with trends by partnering with a trusted training partner

The future trends of the workforce may be more uncertain than ever, but focusing on employee success can be a great way to achieve continued success within your org. To be proactive, consider partnering with an online training program like Penn Foster to set your employees up with tools that can help them move forward in their careers. Request more information or reach out to our training partners to learn more.