What: The evolving U.S. labor market, shaped by AI, policy shifts, and changing employee values, is forcing organizations to rethink workforce planning and invest in reskilling and internal mobility.

Why it is important: Investing in reskilling, internal mobility, and scenario-based planning enables companies to address talent shortages and future-proof their workforce amid ongoing disruption.

The U.S. labor market is undergoing a period of profound disruption, with employers facing simultaneous slowdowns in labor supply and demand, rapid policy changes, and shifting employee expectations. Traditional workforce planning models, which rely on predictable patterns of hiring and attrition, are proving inadequate as organizations contend with the “Great Stay”—a static workforce that limits flexibility and skill renewal. The rise of AI and automation is further complicating the landscape, driving demand for new skills while diminishing the value of others, particularly in white-collar roles. As a result, HR leaders are being called to adopt more adaptive, scenario-based planning strategies that prioritize reskilling, internal mobility, and alternative talent pipelines. Employee priorities are also evolving, with flexibility, meaningful work, and strong employer value propositions now central to attracting and retaining essential talent. To remain competitive and resilient, organizations must move beyond static planning, embracing continuous adaptation and investment in both technology and people.

IADS Notes: The current disruption in the U.S. labor market, as described by Seramount in January 2026, is compelling HR leaders in retail to move beyond static workforce planning and embrace adaptive, scenario-based models. This shift is driven by macroeconomic volatility, AI-driven changes in skill demand, and the emergence of the “Great Stay,” which has led to a static workforce and new challenges in internal mobility and reskilling, as highlighted by the Stanford Digital Economy Lab in September 2025 and MAD in June 2025. The persistent gap in readiness for AI-driven change—only 36% of retail workers feel prepared, according to BCG in September 2025 and July 2025—underscores the urgency of systematic upskilling and the development of robust talent pipelines, as further supported by Seramount in June 2025. As the retail sector faces rising turnover intentions and evolving employee expectations, The Retail Bulletin in May 2025 and HR Dive in December 2025 emphasize the importance of aligning employer value propositions with flexibility, meaningful work, and foundational skills. Ultimately, as MBS in January 2026 and BCG in November 2025 note, only those retailers that proactively invest in technology, agile leadership, and continuous adaptation will thrive amid ongoing labor market disruption and technological transformation.

US labor market disruption opens the door for HR leaders to reinvent workforce planning