Deputy, the world’s leading workforce management platform for hourly work, today released its annual report, The Big Shift: How Gen Z is Rewriting the Rules of Hourly Work, highlighting the evolving dynamics of the hourly workforce. The report examines the growing role of artificial intelligence (AI) in shift work, the emergence of micro-shifts, and the economic forces shaping industries such as hospitality, retail, healthcare, and services. Conducted in partnership with Dr. Shashi Karunanethy, Chief Economist at Geografia, the findings provide critical insights into how hourly workers and businesses are adapting to today’s economic landscape.
A defining trend in this year’s report is the rise of “micro-shifts” – short, flexible shifts (six hours or less) tailored to balance both employee and workplace needs. As the cost of living continues to rise, more workers, including students, caregivers, and those with multiple jobs, are leveraging micro-shifts to maintain stability while managing other responsibilities.
“The hourly workforce is evolving as Gen Z becomes its largest segment, driving a major transformation in how work is structured,” said Silvija Martincevic, CEO of Deputy. “Micro-shifts aren’t about working less – they’re about working smarter. Today’s workers, especially Gen Z, prioritize flexibility, and businesses that embrace this shift will have a competitive advantage in attracting and retaining talent. At the same time, we see that AI is enhancing – not replacing – shift work, by optimizing scheduling and improving work-life integration. The Big Shift isn’t just a report; it’s a roadmap for the future of hourly work.”
Key findings and data from Deputy’s The Big Shift: How Gen Z is Rewriting the Rules of Hourly Work include:
- Micro-shifts are reshaping hourly work. Currently, micro-shifts are most popular in the hospitality and service industries where there is less regulatory constraint compared to sectors like healthcare. Generation Alpha and Baby Boomers have the shortest average shift lengths, highlighting an untapped opportunity for businesses to engage these workers. At the same time, the nearly 11% gap in U.S. workforce participation between men and women – largely driven by a lack of flexibility – underscores the need for change. Micro-shifts offer a compelling solution, allowing workers to build schedules around caregiving and other responsibilities, fostering greater economic inclusion while helping businesses access a broader talent pool.
- AI is enhancing, not eliminating, shift work. 63% of shift workers view AI implementation in their work streams positively – up from 30% the previous year. Among large retailers and logistics companies, 82% now use AI-driven scheduling, with 45% of workers reporting improved work-life balance as a result.
- Gen Z is writing the future of hourly work. Now the largest generation in the hourly workforce, 29% of Gen Z workers are actively job-seeking, while 32% are focused on career progression within their current roles. Their top priorities are competitive wages and a positive workplace culture. Though small in number, Gen Alpha entered the workforce in 2024 and is expected to surpass Gen Z by 2038.
- Women dominate shift work but face wage disparities. Women make up the majority of shift workers but remain concentrated in lower-paying service jobs. Notably, young women (68% Gen Z, 25% Millennials) represent most poly-workers, balancing multiple jobs to manage cost pressures. Deputy’s data also found that women are also transitioning into traditionally male-dominated shift work fields, such as logistics.
“The findings in The Big Shift: U.S. 2025 reveal a fundamental transformation in how Americans approach hourly work,” said Dr. Shashi Karunanethy. “Economic pressures, shifting workforce demographics, and rapid advancements in AI are reshaping the labor market in real-time. Notably, the rise of micro-shifts highlights a growing demand for flexible scheduling, while AI-driven enhancements are proving to be a net positive for shift workers. As businesses and policymakers navigate these trends, understanding the evolving needs of the workforce will be critical to fostering a sustainable and resilient economy.”
For more information and additional findings, download the full report.
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