PHX Reporter

The University of Phoenix Career Institute has released its fifth annual Career Optimism Index study, which highlights several concerns and trends among American workers and employers. The report indicates that workers are facing a crisis of autonomy, with many experiencing burnout due to a perceived lack of career progression. Nearly a quarter of Americans feel their professional control has diminished over the past five years, contributing to a record high 51% of the workforce feeling burned out.

The findings underscore the importance of career development opportunities within workplaces. Employees who feel a lack of control over their career futures are 56% more likely to experience burnout compared to those who feel in control. Additionally, workers are more engaged and motivated when they perceive their jobs provide opportunities for career progression.

Despite the need for internal workforce investment, many employers continue to favor hiring new employees over training existing staff. According to the study, 60% of employers prefer new hires, despite the costs associated with turnover and evidence that talent development can improve retention and profitability. At the same time, 43% of workers report insufficient access to necessary training.

AI is increasingly viewed as a tool that can enhance career advancement and engagement. Over half of workers believe AI accelerates skill development, and 79% say it helps close knowledge gaps. Despite this, investment in reskilling and upskilling has declined since 2022.

John Woods, Provost and Chief Academic Officer at the University of Phoenix, stated, "AI has entirely redefined the future of work, offering employers an unprecedented opportunity to empower their teams like never before." He emphasized the potential of AI-powered learning tools to unlock new talent potential and drive sustainable growth.

The study reveals that 68% of employers consider AI knowledge valuable for employee careers, and 61% prioritize hiring candidates with AI skills over traditional job qualifications.

As AI reshapes work environments, the report calls on employers to invest in talent development with a focus on long-term success to avoid losing talent and competitive edge. "The next five years will determine which companies set the new standard for employee retention and business success—and which fall behind," Woods said.

The study surveyed over 5,000 U.S. adults, including workers and those seeking employment, along with insights from 500 employers. It aims to provide insights into current workforce trends and support efforts to enhance American career opportunities.

For more details on the findings and to access related resources, visit the University of Phoenix Career Institute and its adaptable skills solutions, including the AI-powered Skillmore platform.