Employment Services NAICS 5613

May 15, 2025 - Remote Workers More Engaged, Less Fulfilled

• A global workplace report from Gallup found that while remote workers are more engaged than their hybrid or in-office counterparts, they feel more work-related stress and are less likely to thrive in their lives. Fully remote workers are 31% more likely to be engaged in work (measured as enthusiasm for their job and attachment to their team/organization), compared to hybrid roles (23%) and on site employees (19%). The freedom of remote work comes with psychological downsides, per the report, with feelings of isolation giving way to overall stress about their jobs, loneliness without the camaraderie of in-person coworkers, too much autonomy leading to time management problems, and frustrations with the technology required to collaborate. The results were consistent across salary ranges. Companies that prioritize addressing these issues have only 38% of employees looking for new job opportunities, building more sustainable and better long-term performance.
• With 20% of Americans working remotely, the ability to work from anywhere no longer ties workers to specific geographic regions with high costs of living, and some smaller cities are now offering cash and other incentives to remote workers who move there. Smaller cities with declining populations have little clout to attract new employers to their areas and are instead courting telecommuters to spur economic growth. According to a report from relocation company MakeMyMove, cities such as New Albany, Indiana; Texarkana, Texas; Mayfield, Kentucky; and Jacksonville, Illinois; are floating perks like $5,000 relocation bonuses, free co-working spaces, rotary club memberships, start up grants, and even meetings with the mayor. It’s a trend that could become more widespread as the one-fifth of the population who works remotely (per the Bureau of Labor Statistics) continues to grow.

• Employers in the US are increasingly hiring employees based on skills criteria and deemphasizing past job experience, according to global recruiting firm Hudson RPO. A survey of HR professionals in the US found that 60% of recruiters are placing more importance on transferable skills - capabilities that apply to different jobs and industries - than the historically standard educational and work experience qualifications. Workers who display transferable skills such as communications, leadership, and flexibility should have a leg up. The trend dovetails with data from consulting firm McKinsey & Company that says 90% of companies either currently have or will experience skills gaps in their workforce in the next five years. About 53% of employers told McKinsey they are tackling the problem by reskilling current employees, while the rest are relying more on skills-based hiring, shifting workers to different roles in an organization, and hiring more outside contractors.
• Layoffs in the US job market spiked by 205% in March 2025, the third-highest level ever recorded, according to outplacement staffing firm Challenger, Grey & Christmas. The majority of job cuts came from the federal government with billionaire Elon Musk’s Department of Government Efficiency (DOGE) firing 216,000 federal employees. (The previous highs in job cuts were both in 2020 when the pandemic shut down the US economy.) So far this year DOGE has cut 280,000 federal employees across almost 30 agencies, while another 4,500 employees - mainly at non-profits and health organizations - lost their jobs through the cancellation of federal contracts or aid. Challenger’s data also shows that hiring at private sector US companies is slowing with an expected drop of 16% from the same period last year.