- Economic Uncertainty and AI Anxieties Among Employees’ Concerns
- Hiring Managers Eye Permanent, Contract Workers to Close Skills Gaps
- PwC to Limit Workplace Options for New Hires
- Target to Cut 500 Distribution, Regional Jobs to Focus More on Store Labor
- Figures and Facts of the Week
(Editor’s note: Visit the Feb. 11 federal news roundup to find the January U.S. jobs report.)
Economic Uncertainty and AI Anxieties Among Employees’ Concerns
Economic volatility continues to weigh heavily on U.S. workers, according to the 2026 Inside Employees’ Mind report by consulting firm Mercer.
The report found covering monthly expenses is the leading unmet need, followed by job security, retirement readiness and work-life balance. Seventy percent of surveyed workers report increased financial stress due to inflation and market volatility, while 76% worry about the broader economic impact of tariffs and 56% fear job-related consequences.
The study also suggests many working Americans are feeling unsettled about job security and the future, which is leading them to renew their commitment to their current employers. Pay remains the strongest driver of both attraction (37%) and retention (32%), with healthcare benefits ranking as the second-most important factor influencing employees’ decision to stay.
“Today’s workforce is offering employers a window of opportunity to transform short-term commitment into lasting loyalty,” said Stephanie Penner, Mercer’s U.S. and Canada career practice leader. “That commitment deepens when clarity, fairness and follow-through are embedded into how the organization operates.”
In addition, 53% of the surveyed employees believe new technology will affect their job security, signaling persistent anxiety as artificial intelligence (AI) adoption accelerates.
“For employers, AI adoption is a challenge, but it should also be a catalyst,” said Adam Pressman, Mercer’s U.S. and Canada employee research leader. “Employees want to understand their employers’ AI roadmap. When organizations manage workloads, clarify skill priorities and invest meaningfully in development, AI can become a pathway for growth for both employers and employees, rather than a source of fear.”
Hiring Managers Eye Permanent, Contract Workers to Close Skills Gaps
Only 6% of organizations have the talent they need to complete priority projects, according to new research from talent solutions and business consulting firm Robert Half.
Of the 2,000 hiring managers surveyed, nearly two-thirds (62%) said skills gaps are more pronounced than one year ago. Only a small percentage of mangers reported across several key disciplines having the talent they need to complete priority projects:
- Legal (1%)
- Marketing and creative (4%)
- Finance and accounting (6%)
- Healthcare (7%)
- Human resources (7%)
- Technology (7%)
- Administrative and customer support (12%)
In response, 60% of surveyed hiring managers said they plan to add permanent staff in the first half of 2026, and 55% said they expect to increase contract hiring to support immediate needs.
“As skills gaps continue to widen, employers aren’t standing still,” said Dawn Fay, Robert Half’s operational president. “Organizations are leaning into a mix of permanent and contract hiring to close critical gaps, stay agile and keep priority initiatives moving forward.”
Report: Most Employees Say Their Skills Are Not Fully Used
Sixty-nine percent of workers reported that their skills and abilities are not fully leveraged in their current roles, and 77% said being underutilized has slowed their career progression, according to a new report by career website Resume Now.
Surveyed respondents said their organizations have only a surface-level understanding of their skills, resulting in roles that fail to fully reflect what they do best:
- 36% said their organization shows little to no recognition of their skills (9% no recognition, 27% limited awareness with little action).
- 29% said their skills are only somewhat aligned with their day-to-day work.
- Just 24% said their role closely matches what they do best.
When employees feel their roles fail to tap into their full capabilities, the report suggests it can create a gap between what they can contribute and what their jobs actually require. As a result,
- 13% of surveyed workers feel deeply underchallenged and disengaged all the time.
- 28% often feel they could be contributing much more.
- 28% feel underutilized occasionally.
When employees feel their skills are consistently underused, most of the respondents did not envision staying long term, and many anticipate leaving within months:
- 67% said they would leave their employer within a year if underutilization continued.
- 46% said they would leave within six months, including 17% who would exit in under three months.
- Only 34% said they would stay longer than a year.
PwC to Limit Workplace Options for New Hires
As reported by Business Insider, management consultant firm PwC is cutting the number of U.S. offices that new consulting recruits can join.
Yolanda Seals-Coffield, the chief people and inclusion officer for PwC US, told Business Insider that the firm has limited hiring for new associates in the advisory division to 13 offices. Previously, entry-level consulting hires could join any of PwC’s 72 U.S. office locations.
“The idea is that we want to bring people together in a connected way for those first couple of years,” Seals-Coffield said.
PwC declined to provide the list of locations that will continue to hire entry-level consultants.
The decision to bring consultants together in their first years in the firm is part of PwC’s broader push toward collaborative learning, according to the publication.
On Thursday, Feb. 5, the firm launched the Learning Collective, a new workplace learning strategy focused on everyday, collaborative knowledge-sharing and developing the mix of human and AI skills needed for the future.
Target to Cut 500 Distribution, Regional Jobs to Focus More on Store Labor
Target announced on Monday, Feb. 9, that it’s stepping up store staffing but eliminating about 500 jobs at distribution centers and regional offices as it tries to win back shoppers.
In an internal employee memo obtained by CNBC, the big-box retailer said it’s making changes to the way it runs and oversees stores to improve the customer experience, a top goal of new CEO Michael Fiddelke. To do that, Target said it will reduce the number of store districts and put money toward more hours for frontline store employees.
As part of the changes, Target is laying off about 100 people at the store district level and about 400 across its supply chain sites, the internal email said.
A Target spokesperson declined to specify the amount of additional investment planned for Target stores but said the announcement will not change starting wages for store workers, which range from $15 to $24 per hour depending on the location.
Figures and Facts of the Week
- 21: The percentage of U.S. adults who said they’ve been a witness to or recipient of workplace harassment, according to a new survey from compliance training provider Traliant. Gen Z workers reported the highest exposure, with 46% witnessing harassment and 33% experiencing it firsthand.
- 49: The percentage of global workers who said they experience daily stress at work, according to a new report by workforce solutions company ManpowerGroup. Two in 3 workers said they have recently experienced burnout, citing stress (28%) and large workloads (24%) as the top contributors.
- 66: The percentage of U.S. employees who said they spend up to six hours or more each week correcting errors caused by AI “workslop,” according to a new report by career website Zety. The report also found “workslop” contributes to higher stress (29%), lower morale (25%), reduced productivity (25%) and burnout (21%).
- 26.2 million: The estimated number of American workers who planned to miss work on Monday, Feb. 9, the day after the Super Bowl, according to a survey by workforce management platform UKG. The platform also estimated it would cost companies upward of $5.2 billion in lost work and productivity.
Editor’s Note: Additional Content
For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:
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