Workspan Daily News Bytes for Dec. 5, 2025

U.S. Private Payrolls See Largest Drop Since March 2023

As reported by CNBC, U.S. private-sector employers cut 32,000 workers in November. Small businesses were the biggest driver of the pullback, according to the data from payrolls processing firm ADP.

Larger businesses, entailing companies with 50 or more employees, reported a net gain of 90,000 workers. However, establishments with fewer than 50 workers saw a decline of 120,000, including a drop of 74,000 among firms with 20 to 49 employees. The total loss was the biggest drop since March 2023.

Examining industries, the biggest loss came in professional and business services, which saw a decline of 26,000 jobs. Others shedding jobs included information services (-20,000), manufacturing (-18,000), and financial activities and construction, both of which saw losses of 9,000. Education and health services (+33,000) and leisure and hospitality (+13,000) led the gainers.

“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said ADP chief economist Nela Richardson.

The U.S. Department of Labor’s Bureau of Labor Statistics will release its nonfarm payrolls picture on Dec. 16, a date delayed because of the government shutdown.

California: New Limits on Stay-or-Pay Contracts Start on Jan. 1

Effective Jan. 1, 2026, California Assembly Bill 692 (AB 692) will limit an employer’s ability to impose repayment obligations for upfront sign-on and retention bonuses, as well as certain other “stay-or-pay” practices (such as tuition and loan assistance programs).

The legislation was codified in response to public policy concerns that these types of contracts place unnecessary restrictions on employees, preventing them from freely engaging in a lawful profession, trade or business. As a result, such contracts are deemed void and contrary to public policy.

According to employment law firm Greenberg Traurig, for a sign-on bonus to comply with AB 692, it now must have:

A separate agreement. The repayment obligation terms are set forth in a separate agreement from the primary employment contract (e.g., offer letter or employment agreement).
A five-day review period with an attorney. The employee is notified they have the right to consult an attorney regarding the agreement and provided at least five business days to do so before signing.
A two-year maximum length. The retention date may be no longer than two years from the date the sign-on bonus is paid.
No interest. The repayment obligation is not subject to interest accrual.
A prorated repayment plan. The repayment obligation must be prorated based on the date of employment separation in relation to the original payment date and the retention date. For example, if the retention date is two years from the date of payment, and the employee voluntarily resigns after exactly one year, the repayment obligation cannot exceed 50% of the sign-on bonus.
An option to defer payment. The employee has an option to defer receipt of the sign-on bonus until the retention date without any repayment obligation.
The stipulation that it is only repayable for certain separations. The separation from employment triggering the repayment obligation must be due solely to the election of the employee (i.e., voluntary resignation) or at the election of the employer based on the employee’s misconduct. In other words, a layoff or other non-misconduct-related involuntary resignation may not trigger a repayment obligation.

To prepare for compliance with AB 692, the law experts said employers can review their go-forward sign-on and retention bonus practices, policies and agreements.

New Study Shows AI is Rewriting the ‘Architecture of Work’

Artificial intelligence (AI) is becoming a structural force redefining work, according to a new study by i4cp, a human capital research and advisory firm.

Based on input from C-level HR leaders who serve on one of i4cp’s executive boards, the firm’s 2026 Priorities & Predictions report found:

Companies increasingly use AI-driven layoffs as a strategic lever. The report notes a sharp rise in enterprise workforce reductions tied loosely — and increasingly explicitly — to AI adoption, even as S&P 500 performance climbs.
Skills are becoming the operating system of work. Organizations are rapidly shifting from role-based structures to fluid, skills-based workforce models, yet only 12% are mature in this shift today.
“Digital work twins” are moving from experimentation to practice. AI agents that learn an individual’s workflows, communication style and decision patterns will become more mainstream and will be productivity multipliers.
Workforce design are becoming fluid, modular and adaptive. Work is increasingly assembled dynamically from human and digital contributors, reshaping organizational structures, internal mobility and leadership expectations.

Additionally, the study provided function-specific priorities, including:

80% of future-of-work leaders are focused on redesigning work for AI.
68% of CHROs identify AI-related workforce initiatives as their top priority.
65% of talent acquisition leaders plan to implement AI technologies in hiring.
59% of chief learning and talent officers are prioritizing enterprise-wide upskilling.

“The architecture of work itself is being rewritten,” said i4cp founder Kevin Oakes. “Whenever a disruptive technology enters the mainstream, there’s immense pressure to act quickly, often amplified by investor expectations, media narratives and competitive anxiety. … The winners in the AI era will be those that build the organizational muscle to learn faster and apply those lessons more wisely than their competitors.”

Workplace Culture Remains Driver of Engagement, Adaptability

Organizations that support flexibility, invest in learning and development, and lead with authenticity are better positioned to overcome today’s challenges for their employees, according to a Workforce Trends Report by consulting firm DHR Global.

In a survey of 1,500 corporate professionals across North America, Europe and Asia, respondents said:

Their workplace culture is somewhat (40%) or very (53%) important to their employee experience.
Only 36% of workers feel their corporate culture is well-defined and drives performance, with many instead describing it as reactive and inconsistent across teams (46%) or vague and not actively shaped (15%).
Nearly 31% chose “a stronger, more purposeful workplace culture” as one of the top three improvements they want from their employer over the next year.

Additionally, the report found employee engagement continues to fall as burnout rises: Only 64% of workers described themselves as very or extremely engaged — down from 88% in 2025. This trend is consistent across regions, with engagement lowest in Asia (59%), and slightly higher in North America (67%) and Europe (68%). Professional development continued to be the top driver of engagement (71%), ahead of remote/hybrid work (63%) and generative AI tools (55%).

Burnout remains a major challenge among employees, with 83% of workers feeling at least some degree of burnout, consistent with 2025 (82%). The issue is most pronounced in:

Retail (62%)
Healthcare (61%)
Tech (58%)

Overwhelming workloads (48%) and working too many hours (40%) topped the list of burnout causes for respondents across all regions.

To view the full report, which also addresses AI advancements and evolving work models, click here.

Report: Rebuilding Employee Trust, Security Key in 2026

U.S. employees are feeling more anxious than ever, according to a 2026 State of the Workforce Report by career platform MyPerfectResume.

From mounting fears of layoffs and inflation to the surge in side hustles as a lifeline, the report noted workers sought stability amid instability, while employers balanced pragmatism with risk.

Key findings included:

92% of surveyed workers expected a recession; 80% were worried that inflation would shrink their wages.
81% of workers feared losing their jobs in 2025.
79% of HR professionals reported being cautious about hiring.
79% of workers felt disconnected from their jobs; only 22% aligned with their managers weekly.
71% of employees relied on secondary income to stay afloat.
43% of employees feared a full-time return to office (RTO) more than losing a relationship or going through a divorce.

“In short, 2025 was the year of cautious careers. Workers clung to stability, even as they feared layoffs and rising costs. Employers slowed hiring but showed new flexibility. Engagement cratered, side hustles surged and the RTO battle dragged on,” said Jasmine Escalera, a career expert at MyPerfectResume. “As we move into 2026, one thing is clear: Rebuilding trust and creating genuine security, both financially and emotionally, will be the biggest challenge facing both workers and employers.”

Figures and Facts of the Week

52: The percentage of U.S. workers who are concerned that AI could replace their jobs, according to the 2025 KPMG American Worker Survey, which polled more than 2,100 workers across multiple industries.
55: The percentage of employees who feel burnt out at work, according to a new survey by Eagle Hill Consulting. Workers from Generation Z are the most burnt out, at 66%, followed by millennials (58%), Gen X (53%) and Baby Boomers (37%).
67: The percentage of global employees with fertility challenges who say their employer doesn’t offer support for undergoing fertility treatment, according to a survey by Fertility Matters. The survey — which polled more than 3,600 employees in Australia, France, Japan, Poland and the United Kingdom — found 39% of respondents who have undergone fertility treatment said they left or considered leaving their roles during that time.
84: The percentage of surveyed European workers who felt informed about their benefits, according to a report by consulting firm WTW. Despite this finding, the data showed only 61% of employees felt satisfied with their benefit package.

Editor’s Note: Additional Content

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