Shift Work in Transition: How Tech, Economic Change, and New Business Models Are Reshaping the Labor Market

by Deputy Team, 5 minutes read
HOME blogshift work in transition how tech economic change and new business models are reshaping the labor market

The hourly workforce in the United States is in flux — and it’s not just because of generational change. Diving deeper into why (and how) this workforce is changing paints a unique picture, one coloured by economic shifts, AI innovation, and new service models that are quietly transforming how businesses schedule, hire, and manage shift workers.

In Deputy’s Big Shift 2025 Report, we highlight the key trends shaping the future of hourly work — from policy risks to platform-powered employment, and much more. And, to help you navigate how these trends will impact your business now and into the future, we’re covering everything you need to know to stay competitive in a changing labor market.

Economic conditions are driving caution (and change)

The post-pandemic recovery has been anything but predictable. 

While inflation is easing, for example, the ripple effects on wages, business costs, and workforce availability are still playing out. Businesses across industries like retail, hospitality, healthcare, and logistics are being forced to do more with less, making labor efficiency and cost visibility more important than ever — especially as businesses scale. 

Deputy’s research shows 26% of retail shift workers have held two or more jobs at once to help offset rising costs.

What’s shaping the current environment?

  • Wage growth and cost-of-living concerns are affecting labor supply

  • Employers are balancing cautious hiring with the need to maintain service levels

  • Staff turnover remains a risk when hours or pay don’t meet expectations

Both wages and job stability will impact retention, more specifically in industries like hospitality

This is one of many reasons why workforce management solutions are on the rise. Smart scheduling, visibility into labor costs, and the ability to adjust rosters in real time aren’t just operational upgrades for businesses — they’re essential tools for weathering ongoing economic shifts. It’s the employers who take a proactive approach in managing their hourly workforce that will be better equipped to adapt quickly, retain staff, and keep margins healthy.

Key takeaway: Efficiency is no longer a luxury, it’s a requirement. Businesses must use data to match staffing to demand, reduce time waste, and help retain their workforce.

AI and automation are changing the game for employers and workers

The integration of artificial intelligence and automation into everyday business operations are reshaping how shift work operates — both behind the scenes and on the front lines.

From predictive scheduling to AI-driven job matching, new solutions and tech offerings are helping employers operate with greater precision while also giving workers more control over when and how they work. 

AI-powered job matching, paired with automated job application processes, are already making it easier and more efficient for employers to hire, and workers to find more accessible employment. 

What you should watch out for in 2025

  • Predictive tools that forecast labor needs based on sales and foot traffic

  • AI-powered platforms connecting workers to last-minute open shifts

  • Automation freeing up time for frontline managers to focus on people, not admin

As AI capabilities continue to expand, the businesses that succeed will be those that blend tech efficiency with human-centered leadership. Automating manual processes isn’t just about cutting costs — it’s about enabling faster decisions, fewer errors, and better support for your team. Not to mention, AI’s ability to help enhance productivity of (not replace) shift work jobs. 

Key takeaway: Technology won’t replace shift workers — but businesses that don’t adopt tech may struggle to attract and retain them.

Employee expectations are evolving thanks to new tech

A vast majority of shift workers today live in a mobile-first world — and they expect the same level of simplicity, speed, and self-service in the workplace. 

Outdated tools, inflexible systems, or a lack of transparency can be deal-breakers for today’s workforce, especially among Gen Z and younger Millennials. 

Our research found, for example, that poly-workers are balancing multiple jobs at once, calling for more flexibility in how they can schedule, swap, or manage shift work. 

3 expectations employees have for workforce tech

  • Self-service scheduling and the ability to swap shifts via mobile

  • Real-time alerts for schedule changes or available shifts

  • Seamless onboarding, time tracking, and pay transparency

New tech demands aren’t just relevant to employee satisfaction; from a workforce planning perspective, technology that allows for more self-management on the employee side might just lead to core benefits for employers, too. 

Think: reductions in last-minute scheduling or shift swaps, which means more stability and fewer disruptions. 

Investing in digital tools isn’t just about staying competitive — it’s about meeting your workforce where they are. Tech that empowers workers to manage their schedules, track their time, and access information on the go is only going to help further build trust and reduce turnover.

Key takeaway: Better tech means better retention. Give your team tools they actually want to use — and you may just find they stick around longer.

Platform-based work is on the rise

The way Americans shop, dine, and receive services has permanently changed — and shift work is changing along with it, too. Online retail, food delivery, mobile healthcare, and on-demand home services are just a few examples of platform-based work that’s helped create new job categories and shifted expectations for flexibility, autonomy, and speed.

New shifts in physical and digital commerce are driving change (and demand) for roles in logistics and fulfillment, especially when it comes to e-commerce. 

What does this mean for employers?

  • Traditional scheduling needs to compete with gig-style flexibility

  • Shift workers expect quicker onboarding and less friction in getting paid

  • Employers need to rethink retention strategies to match the autonomy workers get from gig platforms

To retain hourly workers in industries like logistics, retail, and hospitality, businesses are going to have to adapt their models to account for the new hybrid way of working that many shift workers are adopting. 

You can, for instance, consider offering your employees more autonomy with digital scheduling and on-demand flexibility, which are no longer just perks — they’re core examples of how you stay relevant in a labor market where freedom and agility rule.

Remember: Traditional employers must compete not just with each other — but with the freedom and flexibility of gig work.

A workplace in evolution

The labor market isn’t standing still — and neither should your business. Our Big Shift 2025 Report research makes it clear: technology, economics, and shifting expectations are reshaping how, when, and where shift work happens.

  • AI-driven scheduling and job matching are becoming standard.

  • Shift workers are continuing to feel the pressure of rising economic costs, making flexible and poly-employement more important than ever.

  • Workers expect intuitive, tech-enabled systems that support autonomy.

    • Are your workforce management systems set up to meet these needs?

Businesses that evolve their systems, schedules, and staffing strategies now will be best positioned to succeed in the next era of work. 

Explore more big shifts that’ll impact your business in 2025

Deputy’s Big Shift Report dives deeper into the data behind the core trends and changes that’ll impact your business in 2025. Download the full Report for all of the insights and research from the Deputy team, today.

[Download the full Report]