HR in 2025: AI Transformation, Fewer Layoffs, Rising Gig Work, and New Labor Challenges

43%

HR is undergoing a major transformation as Agentic AI shifts HR from administrative work to strategic impact — automating hiring, onboarding, and manager tasks. With AI use in HR rising from 26% in 2024 to 43% in 2025, leaders are now focusing on improving productivity, employee experience, and decision-making. The SHRM–Google Cloud–Quantiphi partnership is calling on CHROs to shape this future by adopting AI responsibly to drive innovation and workforce growth.

37%

U.S. layoffs fell 37% in September as companies announced fewer job cuts, signaling some stability in the labor market. However, planned hiring for the year plunged to its lowest level since 2009, showing weak demand for new workers. The slowdown in recruitment highlights ongoing caution among employers amid economic uncertainty, leaving overall job growth sluggish despite fewer layoffs.

8,200

A new UKG study of 8,200 frontline workers across 10 countries found that over one in three globally are already using AI, with India leading at 84%, followed by Mexico at 52% and Australia at 39%. Those using AI report lower burnout levels (41% vs 54%), but two-thirds still fear the technology could replace their jobs. Many are working extra hours or learning new skills to prove their worth, as one in five believe their roles could be fully replaced within five years. Experts urge leaders to communicate AI plans clearly and provide better training so employees can adapt and thrive alongside AI.

83%

About 12% of today’s global workforce consists of gig workers, and this number is rapidly growing as more organizations turn to flexible, contract, and freelance talent. While gig workers bring specialized skills, managers face challenges like lower engagement, communication barriers, and maintaining project timelines. Experts suggest structured onboarding, clear communication, and strong relationship-building to effectively integrate gig workers and ensure smooth collaboration with full-time teams.

800

A new Littler 2025 Labor Survey of nearly 800 leaders found that 1 in 4 employers have faced union organizing in the past two years, yet only 9% of non-unionized and 18% of unionized companies feel very prepared to handle it. Less than half have strike or disruption plans, even as 42% report unions becoming more aggressive. Experts say HR must strengthen engagement, communication, and contingency planning to address rising labor activity and evolving worker expectations.