As American workers navigate economic uncertainty and rapid workplace transformation, a new report finds that one in four feel their professional future is increasingly out of their hands.
The University of Phoenix Career Institute released its fifth annual Career Optimism Index on Monday, highlighting a record level of burnout and growing frustration with employers lack of investment in training and advancement opportunities.
According to the report, 51% of workers say they feel burned out — the highest in the five-year history of the Index. A key driver of that burnout is a lack of career progression. Workers who feel theyre not advancing at the right pace are 52% more likely to be burned out (67% vs. 44%).
The data reveals a widening gap between employee expectations and employer actions. Sixty percent of employers said they would rather hire new talent than train current staff, even though 86% of workers are actively seeking skill development opportunities. At the same time, access to training has dropped: 43% of workers say they lack necessary training, an 8-point jump since 2021.
Nearly a quarter (21%) say their sense of control over their professional future has gotten worse over the past five years. The lack of control correlates strongly with higher burnout, disengagement, and reduced motivation.
Despite the grim outlook, the report points to one bright spot: artificial intelligence tools may offer a path forward.
More than half of workers (56%) believe AI can accelerate skill development, and 79% say it helps close knowledge gaps. Among workers using AI tools, increases were reported in autonomy (+12 points), resilience (+5 points), and adaptability (+5 points). They also experienced improved productivity (89%) and better work-life balance (81%).
“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 University of Phoenix. “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 AIs capabilities to embrace the solutions available to them today will be the ones leading tomorrow.”
Employers are also taking note: 68% agree that knowing how to use AI is a valuable skill for career growth, and 61% would prioritize AI-trained job candidates even if they lack traditional qualifications.
Still, Woods cautions that technology alone isnt enough.
“Looking ahead, the next five years will determine which companies set the new standard for employee retention and business success — and which fall behind,” Woods said. “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.”
With 76% of workers reporting they rely on hope just to make it through the year, the Index paints a sobering picture of employee morale — and a clear call for employers to act.