Gen Z now makes up largest share of hourly workforce, Deputy report reveals

Gen Z now constitutes the largest segment of the hourly workforce, according to a report from Deputy.

Deputy, the workforce management platform for hourly work, has released its annual report The Big Shift: How Gen Z is Rewriting the Rules of Hourly Work, offering a comprehensive look at the changing dynamics of the hourly labour market.

Produced in collaboration with Dr Shashi Karunanethy, chief economist at Geografia, the 2025 edition of the report explored the expanding role of artificial intelligence (AI), the rise of “micro-shifts,” and the powerful impact of Generation Z on the structure and culture of shift-based employment.

At the heart of this year’s findings was the growing prevalence of micro-shifts – short, flexible work periods of six hours or less – which are quickly becoming a cornerstone of modern workforce strategies.

These shifts cater to the evolving needs of workers, particularly students, caregivers, and those juggling multiple jobs, by offering a way to maintain income stability while managing personal responsibilities.

The hospitality and service sectors, where regulatory constraints are relatively low, have seen the greatest adoption of this trend, while healthcare remains slower to adapt.

Silvija Martincevic, CEO of Deputy, emphasised the significance of this evolution.

Martincevic said: “The hourly workforce is evolving as Gen Z becomes its largest segment, driving a major transformation in how work is structured.

“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.”

The report also highlighted how AI is reshaping the landscape of shift work – not by replacing human roles, but by enhancing them.

63% of shift workers viewed AI’s role in their work positively, a marked increase from 30% the previous year.

In large retail and logistics firms, 82% were using AI-driven scheduling tools, and 45% of employees reported an improvement in their work-life balance as a result.

Generation Z, which now comprises the largest share of the hourly workforce, emerged as a transformative force.

29% of Gen Z workers were actively seeking new roles, while 32% were focused on progressing within their current positions.

Their most valued priorities included competitive pay and a workplace culture that supports inclusion and growth.

Gender disparities remained a persistent issue, particularly as women dominate shift-based employment yet are often clustered in lower-paying service jobs.

The report revealed that women, especially Gen Z and Millennial workers, represented the majority of “poly-workers” – individuals holding multiple jobs to manage financial stress.

Encouragingly, women were increasingly moving into roles traditionally dominated by men, such as those in logistics, suggesting progress toward greater occupational equity.

Dr Karunanethy underscored the broader implications of the findings: “The Big Shift: U.S. 2025 reveals a fundamental transformation in how Americans approach hourly work.

“Economic pressures, shifting workforce demographics, and rapid advancements in AI are reshaping the labor market in real-time.

“Understanding the evolving needs of the workforce will be critical to fostering a sustainable and resilient economy.”