This Week in HR News | May 16th, 2025 | Hiring Trends, Layoffs, and Workforce Shifts

Press Release from ShiftAgain

It’s been an eventful week across the HR landscape, with major developments shaping how we hire, onboard, and support today’s workforce. From large- scale layoffs and legal blocks on federal downsizing to surging seasonal hiring and growing concerns about job security, this week’s headlines offer valuable insights for HR leaders navigating change.

Below, we’ve rounded up the top workforce trends and news stories you need to know - along with the implications they carry for talent strategy, compliance, and employee well- being.

1. Surge in Layoffs Across the Federal and Private Sector

Major Findings :
Microsoft is laying off 3% of its workforce (~7,000 workers), while Amazon is cutting 100 jobs in its devices unit. Simultaneously, a federal judge has blocked the Trump administration's plan for mass layoffs in the federal workforce.

Context :
Layoffs are driven by cost-cutting, restructuring, and concerns over AI and automation. The federal layoffs were halted due to legal concerns over lack of congressional approval.

HR Implications :

  • HR should brace for increased employee anxiety and morale issues.
  • Legal teams should review downsizing plans for compliance.
  • Communication plans must be proactive and transparent to retain trust.

Sources :

2. Onboarding and Offboarding as Strategic Moments

Major Findings :
New research emphasizes that onboarding and offboarding are essential to building long-term employee engagement and trust, particularly in hybrid and remote work environments.

Context :
Fast Company, HR Executive, and Chronicle of Higher Ed noted a growing trend in leveraging these transition points for culture-building and retention.

HR Implications :

  • Organizations should invest in personalized, tech-supported onboarding.
  • Offboarding should include exit interviews and alumni engagement.
  • Streamlined digital tools can enhance the experience across roles.

Sources :

3. Teen Summer Employment Declining in 2025

Major Findings :
Teen employment is dropping due to economic uncertainty and fewer available entry-level roles. Employers are hiring less due to rising costs and cautious economic forecasts.

Context :
Challenger, Gray & Christmas reported this trend as a warning for seasonal and youth-oriented hiring sectors.

HR Implications :

  • Employers should consider targeted outreach to younger workers with flexible roles.
  • Companies may want to offer mentorship or job-shadowing instead of full-time roles.
  • There may be long-term implications for workforce readiness and labor pipeline.

Source :

4. Mental Health and Job Security Anxiety

Major Findings :
40% of employed Americans are experiencing job insecurity and anxiety tied to current events, according to an annual mental health poll.

Context :
This trend reflects wider national and global stress factors, economic uncertainty, and the impact of high-profile layoffs.

HR Implications :

  • Mental health resources and clear internal communication are critical.
  • HR should audit benefits and wellness programs to ensure adequate support.
  • Transparency around job stability can ease anxiety and reduce turnover.

Source :

5. Increased Hiring for Summer, But with Legal and Safety Caveats

Major Findings :
McDonald's plans to hire 375,000 workers, and Kroger is hiring 15,000. However, legal experts warn about compliance issues in summer hiring, especially concerning minors.

Context :
A recent case involving alleged child labor violations at Tyson Foods underscores the importance of legal oversight during hiring surges.

HR Implications :

  • Ensure compliance with child labor, wage, and safety regulations.
  • Train seasonal staff thoroughly and implement clear protocols.
  • Develop scalable hiring systems for onboarding and tracking compliance.

Sources :

6. Persistent Job Loss Fears and Career Transitions

Major Findings :
Job insecurity is driving a surge in career transitions and executive coaching. This includes large-scale transitions in public institutions like the EPA and Sierra Club.

Context :
Reports show that organizations are responding with career transition services as employees reassess their goals post-layoff or job threat.

HR Implications :

  • Consider offering career coaching and transition tools as part of offboarding.
  • Leverage internal mobility and reskilling programs to retain talent.
  • Support emotional and psychological aspects of workforce change.

Sources :

7. Compliance and Onboarding Tech Integration

Major Findings :
New onboarding tools are being developed that incorporate compliance checks, document verification, and seamless digital experiences.

Context :
Companies like Ocorian and Alkami are emphasizing tech-enhanced onboarding to mitigate compliance risks and improve user experience.

HR Implications :

  • HR leaders should evaluate tech vendors that enhance compliance and reduce friction in hiring.
  • Investing in smart onboarding software can reduce administrative errors and increase retention.

Sources :

8. AI and the Labor Market: A Cautious Outlook

Major Findings :
Large language models (LLMs) are being adopted rapidly, but their labor impact remains moderate for now. Some employees, like software engineers, are seeing early displacement.

Context :
A Fortune article reported one engineer applied to 800 jobs after losing his AI-affected position. NBER data confirms a gradual reshaping of exposed occupations.

HR Implications :

  • Track AI exposure in job roles and plan reskilling initiatives accordingly.
  • Communicate changes clearly to avoid panic but remain proactive in workforce planning.

Sources :

9. Job Loss Anxiety and Psychological Effects

Major Findings :
Harvard Business Review and others highlight how the emotional toll of job insecurity mirrors the grieving process and can impact workplace productivity.

Context :
Layoff-related anxiety and “anticipatory grief” are emerging trends in employee mental health literature.

HR Implications :

  • Provide training for managers to recognize signs of mental distress.
  • Enhance access to mental health professionals or EAP services.
  • Normalize discussions around uncertainty and wellbeing.

Sources :

10. Workforce Inequity in Global Healthcare Systems

Major Findings :
Despite growth in the global nursing workforce, inequity in distribution continues to undermine global health goals, as reported by the WHO.

Context :
Disparities persist between high- and low-income regions, limiting healthcare access and overburdening HR systems in understaffed areas.

HR Implications :

  • HR teams in healthcare should prioritize equitable hiring and upskilling.
  • Partnerships with international organizations may aid in closing skill gaps.
  • Remote healthcare delivery and flexible staffing may support underserved areas.

Source :

 

By monitoring these developments, HR leaders will be well-positioned to respond thoughtfully and proactively, cultivating a resilient, engaged workforce in the face of constant change. Note: These summaries were compiled with the assistance of ChatGPT, an AI language model, for informational purposes only.

Companies Mentioned in this Press Release: