The labor market is cooling, so now would be the time for companies to invest in existing employees.
With the labor market cooling, experts said this is the best time for employers to invest in their current employees. The only problem is that companies do not really do it.
This is according to the last research of the working day. Although a modest increase in employment is in the first half of this year, employment and internal promotion rates have already decreased.
The demand for employment increased by 6 % on an annual basis in the first half of 2025, a slight decrease from an increase of an annual basis in the first half of 2024, according to internal data in Workday and external surveys.
However, internal employment decreased by 8 % on an annual basis, only 30 % of all appointments in June were internal. In addition, the promotion rates decreased in 10 of 11 industries that follow the working day; Manufacturing was the only one to see an increase in promotional performances.
“It is very rare to see 10 industries of promotional recession at the same time,” said Phil Wilbourne, Vice president of Analysis, Vision and Experiences. “It was very surprising to me in our latest data.”
It creates some frustration. More than 57 % of job seekers feel stuck in the labor market today, according to one of the investigative studies conducted by the work day of the report. (High performance, who is often more chances even in the refrigeration markets, does not feel very stuck, though: The attrition of high -performance employees in each industry, with the largest screws in the field of retail and health care, was 64 % and 28 % on an annual basis.)
Wilbern said that the transformation of artificial intelligence may be responsible. Many companies were eager to adopt new technology, but they have not necessarily focused on training their workers on their use. (Only 21 % of business leaders surveyed by Workday believe that investing in artificial intelligence tools and Upskilling will be a major engine to keep next year.) Instead, they focus on obtaining these skills from external appointments, which may expel employees with high capabilities outside the door.
“You must have a clear and strong novel about artificial intelligence, because high performance, above anything else, needs growth,” said Wilbourne. “They want to grow, and as soon as they feel a little stagnation, they are always chances.”
Another business day data is that human resources leaders need to participate in the artificial intelligence strategy with their peers in C-SUITE, according to Willburn. Without a clear road map and communication about artificial intelligence, workers will be left in dust, and they lack critical skills and fear of displacement. (With regard to, 44 % of employee comments on strategy and artificial intelligence were negative.
“When all these tools are offered, then the CEO is like:” Why don’t we depend when we spend this much money? “This is the time when human resources come now and say:” This is the way you already lead to changing behavior, “Wilburne said.”
This report was originally published by HR Brew.
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2025-09-17 15:07:00
