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The Big Shift: How Gen Z & AI Are Transforming Hourly Work

Deputy, the world’s leading workforce management platform, has released its annual report, The Big Shift: How Gen Z is Rewriting the Rules of Hourly Work. The report explores key trends in hourly employment, including:

  • The growing role of AI in shift work.
  • The rise of micro-shifts (short, flexible shifts of six hours or less).
  • Economic forces shaping industries such as hospitality, retail, healthcare, and services.

Conducted in collaboration with Dr. Shashi Karunanethy, Chief Economist at Geografia, the report provides insights into how businesses and workers are adapting to economic and technological changes.

Findings

1. The Rise of Micro-Shifts

  • Micro-shifts are reshaping hourly work, especially in hospitality and service industries.
  • Workers leveraging micro-shifts include:
    • Students, caregivers, and poly-workers balancing multiple responsibilities.
    • Gen Alpha and Baby Boomers, who have the shortest average shift lengths.
  • A 11% gender gap in U.S. workforce participation highlights the need for greater flexibility.
  • Micro-shifts allow businesses to access a broader talent pool while promoting economic inclusion.

2. AI is Enhancing, Not Replacing, Shift Work

  • 63% of shift workers have a positive view of AI in their work—up from 30% the previous year.
  • Among large retailers and logistics companies:
    • 82% use AI-driven scheduling.
    • 45% of workers report improved work-life balance due to AI integration.
  • AI is optimizing scheduling efficiency while supporting better workforce management.

3. Gen Z is Reshaping the Future of Hourly Work

  • Now the largest generation in the hourly workforce, 29% of Gen Z workers are actively job-seeking.
  • 32% prioritize career progression within their current roles.
  • Their top workplace priorities include:
    • Competitive wages.
    • A positive work culture.
  • Gen Alpha, which entered the workforce in 2024, is expected to surpass Gen Z by 2038.

4. Women Dominate Shift Work but Face Wage Gaps

  • Women make up the majority of shift workers but are often in lower-paying service roles.
  • Young women (68% Gen Z, 25% Millennials) are more likely to work multiple jobs.
  • Women are increasingly transitioning into male-dominated fields like logistics.

Expert Insights

  • Silvija Martincevic, CEO of Deputy:
    • “Micro-shifts aren’t about working less—they’re about working smarter.”
    • “AI is enhancing shift work by optimizing scheduling and improving work-life balance.”
  • Dr. Shashi Karunanethy, Chief Economist, Geografia:
    • “The rise of micro-shifts highlights a growing demand for flexible scheduling.”
    • “AI-driven enhancements are proving to be a net positive for shift workers.”

Hourly work is undergoing a major transformation as Gen Z drives flexibility, AI adoption, and new scheduling models. The rise of micro-shifts and AI-driven workforce management are reshaping labor markets, creating opportunities for businesses and workers alike.