In the ever-evolving landscape of the American labor market, the flexible workforce has emerged as a pivotal segment, particularly within the hospitality industry. The 2025 State of the Flexible Workforce report sheds light on the dynamic nature of this workforce, offering valuable insights that can help hospitality businesses adapt and thrive. As the industry continues to recover and grow post-pandemic, understanding these trends is crucial for attracting and retaining skilled hourly workers.
One of the most striking findings from the report is that one in three Americans now engage in flexible work. This trend is particularly relevant for the hospitality industry, which often requires a workforce that can adapt to fluctuating demands and seasonal variations. Flexible workers provide the agility needed to meet these challenges, offering businesses a reliable pool of talent that can be scaled up or down as needed.
A Diverse and Skilled Workforce
The report highlights the diversity within the flexible workforce, with 73% identifying as Black/African American and Hispanic/Latino. This diversity enriches the hospitality industry, bringing a wide range of perspectives and cultural insights that can enhance guest experiences. Moreover, the majority of flexible workers have pursued higher education, with many seeking to gain new skills. This focus on skill development ensures the workforce remains motivated and engaged, providing businesses with workers who are eager to learn and grow.
Flexible work arrangements also promote pay equality and reduce gender disparities. By setting hourly rates before shifts are booked, businesses can ensure that compensation is based on skills rather than gender. This approach fosters an inclusive environment where all workers can participate on an equal footing, which is particularly important in an industry as diverse as hospitality.
Interestingly, the report also notes that a significant portion of flexible workers express a desire to work more than 40 hours per week. This inclination is driven by financial goals such as saving for major purchases or achieving greater financial security. For businesses, this presents an opportunity to keep the same workers that know and understand the business that increased efficiency in day-to-day operations.
AI’s Role in Connecting Talent with Opportunity
Artificial Intelligence (AI) is transforming the way businesses connect with skilled workers. The report emphasizes AI’s role in efficiently matching business needs with qualified hourly workers, streamlining the hiring process and ensuring that the right talent is placed in the right roles. For the hospitality industry, this means faster and more accurate staffing, reducing the time and resources spent on recruitment, and allowing businesses to focus on delivering exceptional customer service.
Meeting the Needs of a Dynamic Workforce
Understanding the motivations and preferences of flexible workers is key to attracting and retaining this valuable talent. The report reveals that 77% of flexible workers use their roles to pay for essentials or save for the future, highlighting the importance of offering competitive pay and benefits. Additionally, 60% of workers seek to gain new skills, underscoring the need for businesses to provide opportunities for professional development and career advancement.
To leverage the potential of the flexible workforce, hospitality businesses should consider implementing several strategies. First, offering flexible scheduling can help attract workers who value work-life balance and the ability to tailor their schedules to personal needs. Second, investing in training and development programs can enhance worker satisfaction and retention, ensuring that workers remain engaged and committed to their roles. Finally, use AI to your advantage. This means looking for platforms that leverage AI-powered technology to match business needs with the right workers in close proximity.
ABOUT THE AUTHOR
Kira Caban is the Head of Communications and Instawork’s Economic Research Division. Her insights have been featured by CBS News, Bloomberg Businessweek, Fast Company, and others. Kira has collaborated with leading brands and thought leaders to deliver data and technology-driven solutions to the industry’s most pressing challenges.
