Nearly half of chief people officers are not expecting changes to labour market conditions
Organisations across the world are delaying hiring decisions in the wake of global uncertainty driven by multiple trends, according to a new report from the World Economic Forum (WEF).
The WEF's Chief People Officers Outlook 2025 has showed that many organisations are delaying hiring or restructuring decisions this year.
It comes as "they assess an evolving landscape and navigate macroeconomic volatility, geopolitical tensions, and rapid technological transformation."
In fact, 42% of the CPOs consulted in the report are not expecting any changes to the labour market conditions in the next six to 12 months.
The rest are split, with 32% anticipating a weaker labour market condition, while 26% have a much stronger outlook.
"This points to caution," the report stated. "While caution defines the current look, workforce transformation remains the longer-term imperative for many organisations."
Factors impacting hiring
According to the WEF, three trends influencing organisational priorities include AI adoption, talent scarcity, and changing workforce expectations.
It found that as AI tools become more widely utilised at work, CPOs emphasise the importance of evolving traditional job structures.
The short-term priorities on AI adoption are deploying these tools and introducing related policies to the workforce, as well as mapping the technology's overall impact.
The longer-term timeframe, however, indicates wider AI strategies, such as hiring AI-specialised talent, workforce reskilling, and restructuring roles.
Another factor influencing hiring decisions is talent availability, according to the report.
"Many countries are developing national talent strategies to attract skilled workers or position themselves as talent hubs," the report stated.
"At the same time, global employers are responding by adopting more agile workforce models."
Meanwhile, the report also revealed that workforce expectations are changing following the arrival of younger workers in the labour market.
CPOs said deeper social and psychological shifts are affecting the workplace, such as rising mental health concerns and growing value polarisation within the workplace.
"Technology is perceived as continuing to amplify these trends, changing how people work, communicate and connect with organisations," the report read.
"In response, some people leaders are calling for a renewed emphasis on collective values, re-establishing shared purpose, and team cohesion."
Top priorities for organisations
Amid these trends, the top priority for organisations for the year ahead is reviewing organisational structure and job design, which is cited by 53% of the respondents.
The second-highest priority is workplace culture and articulating business purpose and impact, according to the findings.
"Chief people officers consulted for this briefing highlighted that workplace culture is often first addressed by evolving leadership models," the report read.
"Empowering the next generation of leaders is seen as crucial for fostering resilience and navigating disruption."
Another top priority for firms is supporting workforce deployment of AI and process automation, according to the findings. This indicates technology's "importance as a transformative force reshaping work."
