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Five years into studying Americans’ careers, ��ɫ��Ƶ’s Career Optimism Index® reveals record-high burnout amid decreasing investment in talent development in the workplace—and the potential for AI to change the game

News Highlights:

Workers are 52% more likely to experience burnout when they feel they are not progressing in their careers at the right pace (67% vs. 44%).

60% of surveyed employers prefer hiring new employees over training current staff, despite indicating the significant cost of turnover , and the of talent development on retention rates and profitability.

• 43% of workers report a lack of access to necessary training—an 8-point increase since 2021.
• AI could be the game-changer—56% of workers say AI accelerates skill development and 79% say it helps close knowledge gaps.
• 68% of employers agree that knowledge of how to use AI is valuable for their employees’ careers.

In a time of record-low and growing workplace grievances, the fifth-annual Career Optimism Index® study from ��ɫ��Ƶ Career Institute® reveals American workers are facing a crisis of autonomy.

Nearly a quarter of Americans say their sense of control over their professional future has gotten worse over the past five years (21%), contributing to over half the workforce feeling burned out (51%)— a record high for the Index.

Hope has become a coping mechanism against this backdrop of deepening workplace discontent—76% of workers report relying on it just to get through the year. However, hope alone cannot counteract workers’ growing anxiety over the future of their careers.

This challenge has reached a critical juncture, demanding immediate attention from employers to ensure a resilient workforce for the next five years of work and beyond.

The Business Imperative: Skilling as a Solution

The Index identifies a clear link between restoring workers’ sense of autonomy and decreasing burnout: workers who lack control over the future of their careers are 56% more likely to experience burnout than those who do feel in control (70% vs. 45%).

One of the most effective ways employers can restore workers’ sense of control is to focus on career development opportunities within the workplace:

• Workers are 52% more likely to experience burnout when they feel they are not progressing in their careers at the right pace (67% vs. 44%).
• Workers are less likely to feel disengaged (43% vs. 52%) and are significantly more motivated (+38pts) and adaptable (+14pts) in their careers if they feel their current job provides them with opportunities for career development.

However, many employers continue to prioritize external hiring over internal workforce investment, despite workers’ desire to progress:

• 60% of employers prefer hiring new employees over training current staff, despite indicating the significant cost of turnover, and the of talent development on retention rates and profitability.
• 86% of workers are actively seeking skill development opportunities, yet employer investment in reskilling and upskilling has declined by 13 and 10 points, respectively, since 2022.
• 43% of workers report a lack of access to necessary training—an 8-point increase since 2021.

AI Tools and Training: Accelerating Growth, Autonomy, and Resilience

While internal talent investments are declining, the Index illustrates the workforce’s growing desire to embrace AI tools and training in expediting their career advancement and improving their overall engagement at work:

• AI could be a game-changer for workers, 56% say AI accelerates skill development and 79% say it helps close knowledge gaps.
• Workers who use AI see gains in autonomy (+12pts), resilience (+5pts), and adaptability (+5pts) compared to non-users.
• AI is also improving work-life balance (81%) and productivity (89%, +4 pts YoY)—which bolster mental health. Those who feel they are progressing in their career at the right pace report lower levels of burnout (44% vs. 67%).

Employers similarly recognize the value of AI to their workforce and businesses:

• 68% of employers say knowledge of how to use AI is valuable for their employees’ careers.
• 61% say they would prioritize hiring job candidates with AI training or experience, even if the candidate doesn’t have the traditional skills for a role.

"AI has entirely redefined the future of work, offering employers an unprecedented opportunity to accelerate transformation and empower their teams like never before— breaking through this critical moment of burnout and uncertainty," said John Woods, Provost and Chief Academic Officer at ��ɫ��Ƶ. "With AI-powered learning tools becoming more accessible and scalable, companies can enhance efficiency, unlock new potential in their existing talent, and drive sustainable growth. The organizations that go past recognition of AI’s capabilities to embrace the solutions available to them today will be the ones leading tomorrow."

Employers’ Defining Moment: Empower or Risk Losing Talent

"Looking ahead, the next five years will determine which companies set the new standard for employee retention and business success—and which fall behind," said Woods. "Our Career Optimism Index® highlights a critical opportunity for employers to build a resilient, engaged workforce at the pace of workers and the markets’ demands. AI can be a powerful enabler, but implementation of new technology alone is not enough. Organizations that fail to invest in talent development with intention and an eye on long-term success risk losing not just employees, but productivity and competitive advantage."

The Index is clear—the workforce is ready to evolve. The question is: Are employers?

To access the complete archives of the past five years of Career Optimism Index® research, visit ��ɫ��Ƶ Career Institute®.

For more on the ��ɫ��Ƶ adaptable skills solutions, including AI-powered skills intelligence platform Skillmore™, visit workforce solutions.

ABOUT THE CAREER OPTIMISM INDEX^®

The Career Optimism Index^® study is one of the most comprehensive studies of Americans' personal career perceptions to date. The ��ɫ��Ƶ Career Institute^® conducts this research annually to provide insights on current workforce trends and to help identify solutions to support and advance American careers.

For the fifth annual study, fielded between December 17, 2024-January 13, 2025, surveyed more than 5,000 U.S. adults who either currently work or wish to be working on how they feel about their careers at this moment in time, including their concerns, their challenges, and the degree to which they are optimistic about their careers. The study was conducted among a nationally representative sample of U.S. adults. The study also explores insights from 500 U.S. employers to provide comparison between the workforce and those who hire, train, and retain them.

ABOUT THE UNIVERSITY OF PHOENIX CAREER INSTITUTE^®

Housed within the university's College of Doctoral Studies, the Career Institute conducts impactful research and collaborates with leading organizations to explore broad and persistent barriers to career growth. Through annual studies like the Career Optimism Index® and targeted reports, the Institute shares actionable insights to inform solutions. 

ABOUT UNIVERSITY OF PHOENIX WORKFORCE SOLUTIONS

��ɫ��Ƶ Workforce Solutions Group offers companies across diverse industries as well as community colleges tailored learning and career pathways to recruit, upskill, reskill, and retain their workforce in an affordable and timely manner. Our flexible solutions are informed by a deep understanding of how skills can be mapped and authentically assessed through learning and are aligned to workplace needs and feature live support, career guidance and support tools, education programs, learning pathways, and credit options, including certificates, workshops, single courses, degree programs, or any combination of these tools.

ABOUT UNIVERSITY OF PHOENIX

University of Phoenix innovates to help working adults enhance their careers and develop skills in a rapidly changing world. Flexible schedules, relevant courses, interactive learning, skills-mapped curriculum for our bachelor's and master's degree programs, and a Career Services for Life® commitment help students more effectively pursue career and personal aspirations while balancing their busy lives.