Welcome to Inspirus’ Q3 2025 Employee Engagement Trends Report. Whether you’re a longtime reader or new to our trends series, we’re glad you’re here. This report highlights the most pressing shifts impacting HR and the workforce as we head into the second half of the year with practical insights to help you support your people and lead through uncertainty.
As we move into the second half of the year, the U.S. economy continues to send mixed signals. Growth is slowing, inflation is cooling but stubborn in critical areas like housing and layoffs are climbing. Over 221,000 jobs were cut in early 2025 alone — the highest early-year total since the pandemic — and employee confidence is faltering. Nearly half of workers are actively job searching or open to leaving, yet fewer than 40% believe it’s a good time to find a new job. For HR, this economic limbo calls for steady leadership, clear communication and human-centered strategies that support both organizational resilience and employee well-being.
Compounding these pressures is what we’re calling “The Great Squeeze.” HR is facing increasing pressure to deliver results with fewer resources. Nearly half of corporate executives report considering budget cuts, and HR is often among the first impacted. Yet the expectations haven’t dropped. HR is still expected to lead change, improve culture and drive talent strategy. The burden is especially heavy on HR professionals themselves, many of whom report rising stress, compassion fatigue and growing burnout.
Burnout isn’t limited to HR, though. Two-thirds of U.S. workers now identify as burned out. Middle managers are particularly vulnerable, caught between executive pressure and frontline strain. While mental health benefits have expanded since the pandemic, access, stigma and lack of manager training continue to create a disconnect between what’s offered and what’s actually used.
Adding fuel to the fire is the widening divide over AI. While employers are rapidly accelerating their adoption of AI technologies to drive efficiency and cost savings, employees are struggling to keep pace. Many feel unprepared, unsupported or flat-out left behind. Skills gaps, training shortages and unclear change management strategies are all exacerbating anxiety in the workplace.
Each of these trends carries real implications for HR, but also real opportunities. In the pages ahead, we’ll explore how forward-thinking HR leaders are responding, what strategies are gaining traction and what it will take to lead through the rest of 2025 with empathy, clarity and purpose.
