New report reveals the organisational impact of Trump's first year of his second term
The policy changes on DEI and immigration have impacted businesses the most over the past year, according to a new report, which highlighted the organisational effect of US President Donald Trump's first year of his second term.
Findings from Littler's Workplace Policy Institute (WPI) showed that 71% of employers in the US rated DEI changes as the most impactful to their business.
This is followed by immigration policy shifts, as cited by 65% of the respondents.
The share of employers who said policy shifts in these areas were most impactful was more than twice the proportion who cited other workplace policy and regulatory areas in the report. They include:
- Employee health insurance and related benefits (30%)
- Artificial intelligence use in the workplace (30%)
- Wage and hour or pay practices (28%)
- LGBTQ+ protections in the workplace (21%)
- Union activity / labour relations (15%)
"From new immigration policies and diversity, equity and inclusion (DEI) program crackdowns to booming artificial intelligence (AI) adoption and state legislative changes, businesses are navigating myriad impacts to their workplaces and workers alike," the report read.
Impact of DEI, immigration shifts
It described the focus on DEI as "understandable," with Trump's first executive orders ending DEI programs in the Federal government and instructing federal agencies to identify private sector targets for DEI investigations.
Littler's survey from 2025 even revealed that 55% of employers were considering new or further rollbacks of DEI programmes, as 60% of employers expressed concern about DEI-related litigation.
Meanwhile, Trump's immigration policy shifts have also delivered staffing challenges in workplaces, including the imposed US$100,000 fee on new H-1B visa applications.
More than a third of Littler's respondents said they experienced workforce staffing challenges to a small extent (39%) because of the changes.
Another 19% experienced staffing challenges to a moderate extent, while another five per cent experienced these issues to a large extent.
"Several respondents to this year's survey also touched on specific immigration roadblocks when asked about what actions they have taken in response to general regulatory and economic uncertainty," the report read.
"One employer said their organisation had 'hire[d] differently given immigration status;' another had 'reduced immigration sponsorship;' still another said their organisation was 'no longer sponsoring H-1B visas.'"
Impact of regulatory, economic uncertainty
Regulatory and economic volatility has also influenced employers' workforce decisions over the past year, according to the findings.
It revealed that 35% of respondents have carried out workforce reductions as a result of regulatory and economic uncertainty.
Another 30% paused or reduced hiring, while another 18% reduced or eliminated workplace perks. Other respondents said they:
- Delayed promotions or compensation increases (17%)
- Skipped or reduced bonuses (13%)
"The fast-evolving regulatory landscape, coupled with ongoing economic volatility, has impacted broader workplace decisions and dynamics as well," the report read.
According to Littler, other changes that employers have to prepare for this year include:
- More activity in 2026 for the Equal Employment Opportunity Commission, whether in connection with the consolidation of litigation authority, a fresh look at the Pregnant Workers Fairness Act, or renewed attention to LGBTQ+ rights and the rights of religious employees.
- Additional nominations and changes to the line-up of the National Labor Relations Board.
- The Department of Labor's recent rulemaking covering worker classification, joint employment, and minimum wages for federal contractors.
